Stamp Duty Calculator 2026/27 — Free SDLT Calculator UK

How Stamp Duty Land Tax works in 2026/27

Stamp Duty Land Tax (SDLT) is a tax payable when you buy a residential property or land in England or Northern Ireland above a certain price threshold. The tax is calculated on the purchase price using a banded system — you pay a percentage on the portion of the price within each band, not on the total price. This means the tax bill is not a simple flat rate but a cumulative calculation across four or five brackets depending on your buyer status.

The current SDLT rates for 2026/27 are: 0% on the first £250,000 (standard rate), 5% on the portion from £250,001 to £925,000, 10% on the portion from £925,001 to £1.5 million, and 12% on the portion above £1.5 million. These rates apply to purchases of a main residence by individuals who already own a property. Different rates apply for first-time buyers and purchasers of additional properties.

The temporary threshold increase to £500,000 (introduced in the 2022 mini-budget) expired on 31 March 2025, returning the zero-rate band to £250,000 for existing homeowners and to £300,000 for first-time buyers. This means property transactions since April 2025 have attracted more SDLT than they would have in the previous two years — a factor that significantly affects buyer budgets and conveyancing timelines.

First-time buyer relief

First-time buyers benefit from a reduced SDLT rate on properties up to £500,000. Under the current rules (from April 2025), the zero-rate threshold for first-time buyers is £300,000. On properties between £300,000 and £500,000, first-time buyers pay 5% on the portion above £300,000 — not on the full price. This means a first-time buyer purchasing a £350,000 property would pay 5% of £50,000 equal to £2,500, compared to a standard buyer who would pay 0% on the first £250,000 and 5% on the next £100,000 totalling £5,000.

If the property price exceeds £500,000, first-time buyer relief does not apply, and you pay standard SDLT rates on the full purchase price. This creates a significant cliff edge — a property at £500,000 costs £10,000 in SDLT for a first-time buyer (5% on £200,000), while a property at £501,000 costs £15,050 (standard rates on the full amount). Buyers and sellers should be aware of this threshold when negotiating prices.

Additional property surcharge (second homes and buy-to-let)

If you are buying an additional residential property — such as a buy-to-let investment, a second home, or a holiday home — a 3% surcharge applies on top of the standard SDLT rates across all bands. This means the starting rate becomes 3% (0% + 3%), the 5% band becomes 8%, and so on. The surcharge also applies to limited companies and other corporate bodies purchasing residential property, regardless of how many properties they already own.

There are some important exceptions. The surcharge does not apply if you are replacing your main residence (even if you already own another property that you are selling). If you buy a new main residence before selling your current one, you must pay the surcharge but can reclaim it if you sell your previous main residence within 36 months. This 36-month window was extended from the previous 3-year period and is a common source of confusion — missing the deadline means the surcharge is lost.

Worked examples — SDLT in practice

Example 1: Standard buyer, £350,000 home. The first £250,000 is taxed at 0% (£0). The remaining £100,000 is taxed at 5% (£5,000). Total SDLT: £5,000.

Example 2: First-time buyer, £350,000 home. The first £300,000 is taxed at 0% (£0). The remaining £50,000 is taxed at 5% (£2,500). Total SDLT: £2,500.

Example 3: Second home buyer, £350,000 home. The first £250,000 is taxed at 3% (£7,500). The remaining £100,000 is taxed at 8% (£8,000). Total SDLT: £15,500.

Example 4: Standard buyer, £925,000 home. The first £250,000 is taxed at 0% (£0). The portion from £250,001 to £925,000 (£675,000) is taxed at 5% (£33,750). Total SDLT: £33,750.

Companies and corporate purchases

Limited companies purchasing residential property — for example, for buy-to-let investment or employee accommodation — pay the 3% additional property surcharge on top of standard rates across all bands. From April 2025, the government also introduced a higher rate for corporate purchases of residential property over £500,000, which is reflected in this calculator. Companies purchasing commercial property follow a separate SDLT regime with different rates.

Scotland and Wales — different regimes

This calculator covers SDLT for England and Northern Ireland only. Scotland has its own Land and Buildings Transaction Tax (LBTT) with different rates and thresholds, and Wales uses Land Transaction Tax (LTT). Both devolved taxes have separate bands for first-time buyers and additional properties. If you are buying in Scotland, use an LBTT calculator. If buying in Wales, use an LTT calculator. The differences are significant enough that using the wrong calculator will give an incorrect result.

When and how to pay SDLT

SDLT must be paid and a return filed within 14 days of completing your property purchase. Your solicitor or conveyancer will typically handle the SDLT return and payment on your behalf as part of the conveyancing process. The funds are usually transferred to your solicitor before completion so they can submit the return and payment on the day of completion. Late payment incurs interest and potential penalties — the 14-day window is tight and non-negotiable.

If you buy a property off-plan (new build), SDLT is due on the total purchase price at completion, not on the deposits paid at earlier stages. If you are purchasing a property through a shared ownership scheme, you can elect to pay SDLT on the full market value upfront or on the initial share with subsequent payments on further share acquisitions — a specialist area where professional advice is strongly recommended.

Related tools

If you are budgeting for a property purchase, you may also need the UK Salary Calculator to understand your take-home pay and affordability, the IR35 Calculator if you are a contractor calculating mortgage affordability, and the Inflation Calculator to understand how house price inflation affects your purchasing power over time.