SDLT Rates
Stamp Duty Tax Bands for England & Northern Ireland
Understanding Stamp Duty Rates
Stamp Duty Land Tax (SDLT) is calculated based on the property purchase price. The tax operates on a progressive band system, meaning you pay different rates on different portions of the property value.
How SDLT Rate Bands Work
The amount of Stamp Duty you pay increases progressively with property value. Multiple SDLT thresholds create clear boundaries between different tax rates. It's important to note that residential and non-residential properties have different rate structures.
The progressive nature of SDLT means you only pay higher rates on the portion of the purchase price that falls within each band, not on the entire amount.
Residential Property Definition
For SDLT purposes, a property qualifies as "residential" when it meets specific criteria established by HMRC:
What Counts as Residential Property?
The following property types are classified as residential for Stamp Duty purposes:
- Existing dwellings: Any building currently being used as a home or that could reasonably be used as living accommodation
- Properties under construction: Buildings being constructed or converted for residential use
- Associated land: Gardens, grounds, and any structures located on land connected to a dwelling
- Property rights: Legal interests or rights that benefit a residential property, such as access rights or rights of way
Current Residential SDLT Rates (2026)
The following table shows the current freehold residential Stamp Duty rates applicable in England and Northern Ireland:
| Property Value Band | Standard Rate | Additional Property Rate |
|---|---|---|
| Up to £125,000 | 0% | 5%* |
| £125,001 to £250,000 | 2% | 7% |
| £250,001 to £925,000 | 5% | 10% |
| £925,001 to £1,500,000 | 10% | 15% |
| Above £1,500,000 | 12% | 17% |
*Important: Properties purchased as additional homes for less than £40,000 are exempt from the surcharge. For purchases between £40,000 and £125,000, the 5% additional property rate applies to the full purchase price.
🏘️ Buy-to-Let & Second Home Rates
If you're purchasing a property that won't be your primary residence, additional Stamp Duty charges apply. The current rules impose a 5% surcharge on all transactions involving:
- Buy-to-let investments: Properties purchased specifically to rent out to tenants
- Second homes: Holiday properties or additional residences
- Property portfolios: Any property added to an existing collection
This surcharge applies to the entire purchase price when the property value exceeds the £40,000 threshold.
🔄 Main Residence Replacement Exemption
Good news for those moving home: if you're selling your current main residence and purchasing a new one, the additional property surcharge does not apply.
To qualify for this exemption, you must be replacing your primary home. The property you're selling must have been your main residence, and the new property must become your new principal dwelling.
If you purchase your new home before selling your old one, you may initially pay the higher rates but can claim a refund once the original property sells (within 3 years).
Calculate Your Stamp Duty
Use our free calculator to get an instant estimate of your SDLT liability based on the current rates shown above.