Stamp Duty in 2026: Thresholds, Rates & First-Time Buyer Relief Explained

The stamp duty thresholds changed in April 2025, affecting how much some buyers will need to pay when purchasing a property. If you are planning to buy a home in 2026, it is important that you understand exactly how the current thresholds and rates could affect your upfront costs.

Stamp Duty can often catch homebuyers out and can be a significant expense on top of your deposit, legal fees and other costs of moving home. While the amount you pay will depend on the land or property price, there are different rates and reliefs that may apply.

In this article, we walk you through all the Stamp Duty rates and thresholds that apply in 2026, how relief works for first-time buyers and how much SDLT you could pay on your next home. Let’s begin.

What Is Stamp Duty and How Does It Work?

When calculating Stamp Duty on a property purchase, it can help to think of SDLT as a tiered tax, similar to how income tax is calculated. Rather than applying one percentage to the full value of your home, the purchase price is split into bands. You then only pay the relevant rate on the amount that falls within each band.

Let’s take a look at how SDLT can apply in practice. Under the standard residential rates in 2026, a homemover purchasing a £300,000 home would pay:

• £0 on the first £125,000
• 2% (£2,500) on the next £125,000
• 5% (£2,500) on the final £50,000
• Total SDLT: £5,000

Because SDLT follows this structure, moving into a higher band will not result in the higher rate being charged on the entire property price. As demonstrated in this example, although part of the £300,000 purchase falls into the 5% band, the buyer would pay £5,000 in total instead of 5% on the entire £300,000.

It’s important to note that not every property purchase is taxed in the same way. The stamp duty land tax rates that apply can change depending on the type of purchase and your circumstances.

First-time buyers may qualify for First Time Buyers’ Relief, which increases the amount they can spend before SDLT becomes payable. By comparison, buying a second home or buy-to-let property can result in higher rates being charged.

As a result, your final property stamp duty bill can differ depending on your circumstances and so it is important to check which rates and reliefs apply to your purchase before setting your budget.

What Are the Stamp Duty Thresholds in 2026?

The standard stamp duty land tax thresholds for someone buying their only residential property in 2026 are:

The rates shown above are the standard residential SDLT rates. Different rates can apply to additional non-residential and mixed-use property purchases.

When Do You Pay Stamp Duty?

In most property purchases, you will not need to make a separate Stamp Duty payment to HMRC yourself. Your solicitor or conveyancer will usually calculate how much SDLT is due, collect the money from you before completion and then file the SDLT return and pay HMRC on your behalf.

Although the payment deadline is 14 days after completion, solicitors and conveyancers will often arrange for the tax to be paid on the day you complete. As such, you would normally need to have enough money available to cover your Stamp Duty bill before you receive the keys, alongside your deposit and any other completion costs.

In the case that your solicitor or conveyancer does not handle the SDLT return for you, you will be responsible for filing the return and paying the SDLT yourself within the required deadline.

Do First-Time Buyers Pay Stamp Duty?

The stamp duty rules for first-time buyers changed on 1 April 2025, when the relief thresholds returned to their previous levels. To qualify for first-time buyer stamp duty relief:

• You must not have previously owned an interest in a residential property.
• The property must be in England or Northern Ireland.
• You must be buying it as your main residence.
• The property must cost £500,000 or less.
• All buyers must be first-time buyers if purchasing jointly.

Previous ownership can include residential property acquired in the UK or overseas, including through an inheritance or gift. Therefore, being a first-time buyer for SDLT purposes does not simply mean that you have never had a mortgage.

It is important to note that if you are buying with someone else, every purchaser must meet the first-time buyer requirements to claim the SDLT relief. As such, if one of you has previously owned a residential property, the joint purchase will not qualify for the relief and the standard SDLT rates will apply.

Let’s look at how SDLT applies to a first-time buyer in practice:

An eligible first-time buyer purchasing a £300,000 home would pay:

• First £300,000: 0% SDLT = £0
• Total SDLT: £0

Following the SDLT first-time buyer relief, buyers pay no SDLT on the first £300,000 of a property purchase worth £500,000 or less. Therefore, an eligible first-time buyer purchasing this £300,000 property would pay £0 in this example.

For a property worth more than £300,000, SDLT would become payable on the portion above this threshold. For example, a first-time buyer purchasing a £400,000 home would pay:

• First £300,000: 0% SDLT = £0
• Remaining £100,000: 5% SDLT = £5,000
• Total SDLT: £5,000

Following the standard residential rates, a £400,000 property purchase would result in an SDLT bill of £10,000. However, as this example shows, an eligible first-time buyer would only be liable for £5,000, saving £5,000 in SDLT.

As these examples demonstrate, SDLT for first-time buyers can significantly reduce the upfront cost of buying your first home. However, the amount you pay will depend on the property price and whether you meet the eligibility requirements. As one of the expenses that homeowners often overlook, it is important to calculate SDLT into your budget before making an offer.

Can You Add Stamp Duty to Your Mortgage?

Stamp Duty is an upfront cost that needs to be accounted for alongside your deposit, legal fees and other expenses associated with buying a home. As such, SDLT costs are typically considered separate from your mortgage and your solicitor or conveyancer will usually collect the amount due before completion so that it can be paid to HMRC.

With that said, some lenders may allow you to borrow a larger proportion of the property’s value by taking out a mortgage at a higher loan-to-value (LTV). This could reduce the amount of your own money needed for the deposit, leaving more of your own savings available to cover Stamp Duty.

For example, if you were buying a £400,000 property and had £50,000 available for your deposit and Stamp Duty, you could potentially structure your borrowing differently:

Crucially, this does not mean the Stamp Duty itself has been added to the mortgage. Instead, you are borrowing a larger proportion of the property’s value, leaving more of your existing funds available to pay the tax.

However, borrowing more will increase your mortgage balance, which can lead to higher monthly repayments and more interest being paid over the mortgage term. A higher LTV can also affect the mortgage products and interest rates available to you, with lenders typically offering their most competitive rates at lower LTV bands.

Therefore, reducing your deposit to keep money aside for Stamp Duty could mean borrowing more at a higher interest rate, increasing the overall cost of your mortgage.

It is important to weigh the benefits against the potential long-term cost of borrowing more. A mortgage broker can help you compare different deposit and LTV options to help you understand how your options could affect your mortgage rate, monthly repayments and overall borrowing costs.

What Are the Rules for Buying a Second Home or Buy-to-Let?

When you buy a second home or residential buy-to-let property, you will usually be required to pay higher SDLT rates if you already own another residential property.

What Are the Higher Stamp Duty Rates?

For an additional property, stamp duty on second home purchases is charged at rates 5 percentage points higher than the standard residential rates. This means SDLT starts at 5% rather than 0% and increases across each relevant price band. For example:

These rules apply if the property you are buying costs £40,000 or more and you own or part-own another residential property worth £40,000 or more. This can include residential property you own elsewhere in the UK or overseas.

For instance, if you already own your main residence and purchase an additional property for £300,000, the SDLT would be calculated as:

• First £125,000: 5% = £6,250
• Next £125,000: 7% = £8,750
• Remaining £50,000: 10% = £5,000
• Total SDLT: £20,000

Importantly, buying the property as a buy-to-let does not make it non-residential for SDLT purposes. A house or flat purchased to rent to tenants will still be considered a residential property, and so the higher rates would still apply.

What if You Are Replacing Your Main Residence?

If you are replacing your main residence, you will not usually pay the higher SDLT rates if your previous main home was sold within 36 months before completing the new purchase.

However, should you complete the purchase of a new main residence before selling your existing one, then you will be liable to pay the higher rates because at the time of completion you would own two properties. If you then sell your previous main residence within 36 months, you may be able to claim a refund of the additional SDLT paid.

Is the Buyer or Seller Responsible for Paying Stamp Duty?

In most property purchases, it is arranged so that your solicitor or conveyancer will calculate the SDLT due, collect the money from you and submit the payment to HMRC on your behalf. However, as the buyer, you remain legally responsible for ensuring the correct SDLT return is submitted and any tax due is paid within the required deadline.

Are There Any Stamp Duty Exemptions or Reliefs Available?

Alongside the relief available to eligible first-time buyers that we touched on earlier, there are also several other situations where SDLT may be reduced or removed as a payable tax. The main exemptions and reliefs include:

It’s important to note that money does not always need to change hands directly for SDLT to apply. For example, if ownership of a property is transferred to you and you take responsibility for some or all of an existing mortgage, the mortgage debt can count as payment for SDLT purposes and tax may still be due.

Ultimately, exemptions and reliefs will depend specifically on how the property is transferred. As such,  your solicitor or conveyancer can confirm whether SDLT applies and claim any relief you are eligible for.

Will Stamp Duty Rules Change in 2027?

Under the current rules, buyers in 2027 should continue to calculate SDLT using the existing rates and thresholds. However, SDLT rules can change following government Budgets or other tax announcements, and so it is always best to check the latest HMRC guidance before purchasing a property.

How Can a Mortgage Broker Help You Budget for Buying a Home?

When budgeting for a home, it can be easy to focus on securing your mortgage and overlook the other costs involved in buying and moving.

A mortgage broker can help you account for these expenses while comparing different mortgage amounts and LTVs to show how they could affect your interest rate, monthly repayments and overall budget.

At Boon Brokers, our expert mortgage advisers can assess your borrowing potential and compare mortgage products from over 90 lenders. We can help you understand how different deposit amounts and LTVs could affect your mortgage, while ensuring Stamp Duty and other upfront costs are considered within your total budget.

Our mortgage advice is completely free. You will have a dedicated Boon Brokers adviser who can explain your mortgage options, arrange your application and support you throughout the buying process.