The Simple Guide to UK Stamp Duty: How to Calculate What You'll Pay
The Simple Guide to UK Stamp Duty: How to Calculate What You'll Pay
The Simple Guide to UK Stamp Duty: How to Calculate What You'll Pay
Last updated: 18 Nov 2025
Table of Contents
Buying a property in the UK? There's one cost that often surprises buyers: stamp duty. This is a tax you pay when you purchase property. But how much will you actually pay? That's exactly what our calculator helps you understand. This guide explains how it all works in simple terms.
Buying a property in the UK? There's one cost that often surprises buyers: stamp duty. This is a tax you pay when you purchase property. But how much will you actually pay? That's exactly what our calculator helps you understand. This guide explains how it all works in simple terms.
What Is Stamp Duty and Why Does It Exist?
What Is Stamp Duty and Why Does It Exist?
Stamp duty is a tax the government charges whenever you buy property or land in the UK. Think of it like a purchase tax—similar to VAT on other goods, but specifically for property.
The name comes from the old days when legal documents were literally stamped to show the tax had been paid. Today, it's all digital, but the name stuck.
Here's the important bit: Stamp duty isn't the same everywhere in the UK. Depending on whether you're buying in England, Wales, or Scotland, you'll pay different rates and use different rules. That's why our calculator lets you choose your location first.
Stamp duty is a tax the government charges whenever you buy property or land in the UK. Think of it like a purchase tax—similar to VAT on other goods, but specifically for property.
The name comes from the old days when legal documents were literally stamped to show the tax had been paid. Today, it's all digital, but the name stuck.
Here's the important bit: Stamp duty isn't the same everywhere in the UK. Depending on whether you're buying in England, Wales, or Scotland, you'll pay different rates and use different rules. That's why our calculator lets you choose your location first.
The Three Different Systems in the UK
The Three Different Systems in the UK
England & Northern Ireland: SDLT
SDLT stands for Stamp Duty Land Tax. This is the most common system and applies to most UK property purchases.
Wales: LTT
Wales has its own system called Land Transaction Tax (LTT). It works similarly to SDLT but with different rates and thresholds. Wales took control of its own property tax in 2018.
Scotland: LBTT
Scotland uses Land and Buildings Transaction Tax (LBTT), which is Scotland's version. Again, similar idea, different rates.
Why the difference? The UK has devolved governments—meaning different parts of the country can set their own tax rules. It's like each country having its own property tax system
England & Northern Ireland: SDLT
SDLT stands for Stamp Duty Land Tax. This is the most common system and applies to most UK property purchases.
Wales: LTT
Wales has its own system called Land Transaction Tax (LTT). It works similarly to SDLT but with different rates and thresholds. Wales took control of its own property tax in 2018.
Scotland: LBTT
Scotland uses Land and Buildings Transaction Tax (LBTT), which is Scotland's version. Again, similar idea, different rates.
Why the difference? The UK has devolved governments—meaning different parts of the country can set their own tax rules. It's like each country having its own property tax system
How Much Will You Pay? The Key Concept: Bands
How Much Will You Pay? The Key Concept: Bands
Here's the clever part about stamp duty: you don't pay one rate on your entire property price. Instead, the price is split into "bands" (ranges), and each band has its own rate.
Think of it like income tax: If you earn £50,000, you don't pay the same tax rate on all £50,000. The first portion is taxed at one rate, the next portion at another rate, and so on. The same happens with property prices.
Example: Buying a £400,000 house in England (Main Residence)
Let's work through a real example:
The rate bands in England for a main residence are:
£0 to £125,000: 0% tax (you pay nothing)
£125,001 to £250,000: 2% tax
£250,001 to £925,000: 5% tax
£925,001 to £1,500,000: 10% tax
Above £1,500,000: 12% tax
So for a £400,000 house:
First £125,000: 0% = £0
Next £125,000 (£125,001 to £250,000): 2% = £2,500
Remaining £150,000 (£250,001 to £400,000): 5% = £7,500
Total stamp duty = £10,000
This is why it's called a "progressive" tax—you pay different rates on different portions of the price.
Here's the clever part about stamp duty: you don't pay one rate on your entire property price. Instead, the price is split into "bands" (ranges), and each band has its own rate.
Think of it like income tax: If you earn £50,000, you don't pay the same tax rate on all £50,000. The first portion is taxed at one rate, the next portion at another rate, and so on. The same happens with property prices.
Example: Buying a £400,000 house in England (Main Residence)
Let's work through a real example:
The rate bands in England for a main residence are:
£0 to £125,000: 0% tax (you pay nothing)
£125,001 to £250,000: 2% tax
£250,001 to £925,000: 5% tax
£925,001 to £1,500,000: 10% tax
Above £1,500,000: 12% tax
So for a £400,000 house:
First £125,000: 0% = £0
Next £125,000 (£125,001 to £250,000): 2% = £2,500
Remaining £150,000 (£250,001 to £400,000): 5% = £7,500
Total stamp duty = £10,000
This is why it's called a "progressive" tax—you pay different rates on different portions of the price.
Who Pays Different Amounts? Buyer Categories
Who Pays Different Amounts? Buyer Categories
Not everyone pays the same stamp duty rate. Who you are as a buyer matters—and that's what the calculator asks about.
Main Residence (Your First or Only Home)
If you're buying a property to live in as your main home, you get the standard rates shown above. This is the most common scenario for first-time homebuyers
First-Time Buyer
If you've never owned property before, you get even better rates in England and Scotland. This is a government relief to help younger people get on the property ladder
In England: First-time buyers get 0% on the first £300,000 (instead of just £125,000). That's a huge saving!
In Wales: Unfortunately, Wales doesn't offer a first-time buyer relief. Everyone pays the same rates.
In Scotland: First-time buyers get a nil-rate band up to £175,000 (instead of £145,000). Not as generous as England, but still helpful.
Additional Property or Buy-to-Let
If you already own property and you're buying another one—whether it's a second home, a holiday home, or an investment property (buy-to-let)—you pay higher rates. This includes company purchases.
Why? The government wants to discourage people from buying up lots of properties. So they charge more.
Important: Properties under £40,000 are exempt (free) when buying as an additional property. This is a threshold to help with small property purchases
Non-UK Residents
If you don't live in the UK but you're buying property here, you might pay even higher rates.
In England: Non-UK residents pay significantly higher rates—up to 19% on the highest bands. That's a real penalty.
In Wales and Scotland: Good news—non-UK residents pay the same rates as everyone else. No extra charges.
Not everyone pays the same stamp duty rate. Who you are as a buyer matters—and that's what the calculator asks about.
Main Residence (Your First or Only Home)
If you're buying a property to live in as your main home, you get the standard rates shown above. This is the most common scenario for first-time homebuyers
First-Time Buyer
If you've never owned property before, you get even better rates in England and Scotland. This is a government relief to help younger people get on the property ladder
In England: First-time buyers get 0% on the first £300,000 (instead of just £125,000). That's a huge saving!
In Wales: Unfortunately, Wales doesn't offer a first-time buyer relief. Everyone pays the same rates.
In Scotland: First-time buyers get a nil-rate band up to £175,000 (instead of £145,000). Not as generous as England, but still helpful.
Additional Property or Buy-to-Let
If you already own property and you're buying another one—whether it's a second home, a holiday home, or an investment property (buy-to-let)—you pay higher rates. This includes company purchases.
Why? The government wants to discourage people from buying up lots of properties. So they charge more.
Important: Properties under £40,000 are exempt (free) when buying as an additional property. This is a threshold to help with small property purchases
Non-UK Residents
If you don't live in the UK but you're buying property here, you might pay even higher rates.
In England: Non-UK residents pay significantly higher rates—up to 19% on the highest bands. That's a real penalty.
In Wales and Scotland: Good news—non-UK residents pay the same rates as everyone else. No extra charges.
The Regional Differences Explained
The Regional Differences Explained
England vs Wales vs Scotland: Which is Cheapest?
This depends on the property price and what you're buying. There's no simple answer.
Lower prices (£100,000-£300,000): Wales often wins because it has a higher threshold before tax kicks in (£225,000 vs England's £125,000).
First-time buyers: England wins because it has the most generous relief (up to £300,000 at 0%).
Additional properties/buy-to-let: Scotland has highest rates (8-20% combined), Wales middle (5-17%), England lower in some bands (5-17%).
Non-UK residents: England is by far the most expensive due to special 7%-19% rates.
The calculator instantly shows you what you'd actually pay in each region—that's the real answer
England vs Wales vs Scotland: Which is Cheapest?
This depends on the property price and what you're buying. There's no simple answer.
Lower prices (£100,000-£300,000): Wales often wins because it has a higher threshold before tax kicks in (£225,000 vs England's £125,000).
First-time buyers: England wins because it has the most generous relief (up to £300,000 at 0%).
Additional properties/buy-to-let: Scotland has highest rates (8-20% combined), Wales middle (5-17%), England lower in some bands (5-17%).
Non-UK residents: England is by far the most expensive due to special 7%-19% rates.
The calculator instantly shows you what you'd actually pay in each region—that's the real answer
Important Special Rules
Important Special Rules
The £40,000 Threshold for Additional Properties
When buying additional property, land tax, or buy-to-let, if the property is under £40,000, you pay nothing. No stamp duty at all.
But once it hits £40,000 or above, the full rates kick in. This isn't a nil-rate band (where you pay 0%)— it's a complete exemption.
Why this matters: A £39,999 property = £0 tax. A £40,000 property = £2,000 tax (depends on region). Big jump!
Scotland's Additional Dwelling Supplement (ADS)
Scotland works slightly differently. When buying additional property, Scotland adds an 8% surcharge that's built into the rates.
But it's not added on top—it's already included in the banded rates. So you see rates like 8%, 10%, 13%, 18%, 20% for additional properties. These already include the surcharge
The £40,000 Threshold for Additional Properties
When buying additional property, land tax, or buy-to-let, if the property is under £40,000, you pay nothing. No stamp duty at all.
But once it hits £40,000 or above, the full rates kick in. This isn't a nil-rate band (where you pay 0%)— it's a complete exemption.
Why this matters: A £39,999 property = £0 tax. A £40,000 property = £2,000 tax (depends on region). Big jump!
Scotland's Additional Dwelling Supplement (ADS)
Scotland works slightly differently. When buying additional property, Scotland adds an 8% surcharge that's built into the rates.
But it's not added on top—it's already included in the banded rates. So you see rates like 8%, 10%, 13%, 18%, 20% for additional properties. These already include the surcharge
How to Use the Calculator
How to Use the Calculator
Now you understand the basics, here's how our calculator helps:
Enter your purchase price - Just the property cost, nothing else
Pick your location - England, Wales, or Scotland
Choose property type - Residential or commercial
Select your buyer category - Are you a first-time buyer, buying a second home, etc.?
See your stamp duty instantly - The calculator shows the total, your effective rate, and a breakdown by band
The calculator does all the maths automatically. No need to calculate by hand!
Now you understand the basics, here's how our calculator helps:
Enter your purchase price - Just the property cost, nothing else
Pick your location - England, Wales, or Scotland
Choose property type - Residential or commercial
Select your buyer category - Are you a first-time buyer, buying a second home, etc.?
See your stamp duty instantly - The calculator shows the total, your effective rate, and a breakdown by band
The calculator does all the maths automatically. No need to calculate by hand!
Common Questions Answered
Common Questions Answered
I'm a first-time buyer buying my first home for £350,000 in England. How much do I pay?
Using the first-time buyer rates in England:
£0-£300,000: 0% = £0
£300,001-£350,000: 5% = £2,500
Total: £2,500
That's less than 1% of the price! Much better than the standard 7,500 pounds a non-first-time buyer would pay.
I'm buying a £300,000 second home (buy-to-let) in England. How much?
Using additional property rates:
£0-£40,000: 0% = £0
£40,001-£125,000: 5% = £4,250
£125,001-£250,000: 7% = £8,750
£250,001-£300,000: 10% = £5,000
Total: £18,000
That's 6% of the property price—much higher than for your main home
What if the property is only £35,000?
If it's an additional property under £40,000, you pay £0. Completely exempt. If it's your main residence, the same rates apply but starting from 0%, so: £35,000 at 0% = £0 anyway.
I'm a non-UK resident buying a £500,000 main home in England. How much?
This is painful. Non-UK residents in England pay special high rates:
£0-£125,000: 7% = £8,750
£125,001-£250,000: 9% = £11,250
£250,001-£500,000: 12% = £30,000
Total: £50,000
That's 10% of the property price—the highest rate possible.
I'm buying in Wales instead—how much do I save?
If you're buying a £500,000 main residence in Wales as a non-UK resident, Wales doesn't have special non-UK rates. You pay normal rates:
£0-£225,000: 0% = £0
£225,001-£400,000: 6% = £10,500
£400,001-£500,000: 7.5% = £7,500
Total: £18,000
Savings: £32,000 by buying in Wales instead of England! This is a real difference.
I'm a first-time buyer buying my first home for £350,000 in England. How much do I pay?
Using the first-time buyer rates in England:
£0-£300,000: 0% = £0
£300,001-£350,000: 5% = £2,500
Total: £2,500
That's less than 1% of the price! Much better than the standard 7,500 pounds a non-first-time buyer would pay.
I'm buying a £300,000 second home (buy-to-let) in England. How much?
Using additional property rates:
£0-£40,000: 0% = £0
£40,001-£125,000: 5% = £4,250
£125,001-£250,000: 7% = £8,750
£250,001-£300,000: 10% = £5,000
Total: £18,000
That's 6% of the property price—much higher than for your main home
What if the property is only £35,000?
If it's an additional property under £40,000, you pay £0. Completely exempt. If it's your main residence, the same rates apply but starting from 0%, so: £35,000 at 0% = £0 anyway.
I'm a non-UK resident buying a £500,000 main home in England. How much?
This is painful. Non-UK residents in England pay special high rates:
£0-£125,000: 7% = £8,750
£125,001-£250,000: 9% = £11,250
£250,001-£500,000: 12% = £30,000
Total: £50,000
That's 10% of the property price—the highest rate possible.
I'm buying in Wales instead—how much do I save?
If you're buying a £500,000 main residence in Wales as a non-UK resident, Wales doesn't have special non-UK rates. You pay normal rates:
£0-£225,000: 0% = £0
£225,001-£400,000: 6% = £10,500
£400,001-£500,000: 7.5% = £7,500
Total: £18,000
Savings: £32,000 by buying in Wales instead of England! This is a real difference.
Payment Timeline
Payment Timeline
Stamp duty isn't something you pay months later. You need to pay within 14 days of completing your purchase. Your solicitor will handle this for you as part of the conveyancing process, but the money needs to come from your funds.
Build this into your budget—it's a significant cost that comes due quickly.
Stamp duty isn't something you pay months later. You need to pay within 14 days of completing your purchase. Your solicitor will handle this for you as part of the conveyancing process, but the money needs to come from your funds.
Build this into your budget—it's a significant cost that comes due quickly.
The Bottom Line
The Bottom Line
Stamp duty is a real cost when buying property, but:
✓ It's progressive: You don't pay the same rate on your entire purchase price
✓ It varies by buyer type: First-time buyers, investors, and non-UK residents pay differently
✓ It varies by location: England, Wales, and Scotland have different systems
✓ There are thresholds: Low-value additional properties under £40,000 are exempt
✓ It's substantial: Budget 1-10% of your purchase price depending on circumstances
Our calculator takes all this complexity and gives you an instant answer. Just enter your numbers and see exactly what you'll pay—no guesswork needed.
Stamp duty is a real cost when buying property, but:
✓ It's progressive: You don't pay the same rate on your entire purchase price
✓ It varies by buyer type: First-time buyers, investors, and non-UK residents pay differently
✓ It varies by location: England, Wales, and Scotland have different systems
✓ There are thresholds: Low-value additional properties under £40,000 are exempt
✓ It's substantial: Budget 1-10% of your purchase price depending on circumstances
Our calculator takes all this complexity and gives you an instant answer. Just enter your numbers and see exactly what you'll pay—no guesswork needed.
Looking for a Stamp Duty Calculator?
Looking for a Stamp Duty Calculator?
Know exactly what you'll pay in tax before you make an offer. Our free calculator covers England (SDLT), Wales (LTT) and Scotland (LBTT)—whether you're a first-time buyer, buying your main home, or adding to your BTL portfolio. Get instant breakdowns of your total stamp duty, effective rate, and band-by-band costs in seconds.
Turn "Someday" Into "Deal Day"
Turn "Someday" Into "Deal Day"
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Turn "Someday" Into "Deal Day"
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