2026 Stamp Duty Calculator

Introduction

Stamp Duty Land Tax (SDLT) is an important upfront cost when purchasing property in England and Northern Ireland. Legislative changes effective from 31 October 2024 increased the SDLT surcharge applied to additional residential properties, materially affecting the cost of second homes and buy-to-let purchases.

Our Stamp Duty Calculator reflects the current SDLT framework and provides an estimated SDLT figure based on the property value and buyer type selected. The sections below explain how SDLT works, the applicable thresholds, and how different buyers may be affected.

What is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax (SDLT) is a tax charged by HM Revenue and Customs on the purchase of residential property and land in England and Northern Ireland. SDLT is calculated on a slice basis, meaning different portions of the purchase price are taxed at different rates rather than a single flat rate.

The amount of SDLT payable depends on factors including the purchase price, whether the buyer is a first-time buyer, whether the property will be a main residence, and whether the purchase is classified as an additional residential property.

Key SDLT Thresholds (correct as of January 2026):

The current SDLT thresholds for residential property purchases in England and Northern Ireland are as follows:

• General Buyers: No SDLT is payable on the portion of the purchase price up to £125,000

• First-Time Buyers:

• 0% SDLT applies on the first £300,000

• 5% SDLT applies to the portion of the purchase price between £300,001 and £500,000

• First-time buyer relief is not available where the purchase price exceeds £500,000

• Second-Home and Investment Buyers: A 5% SDLT surcharge applies in addition to standard SDLT rates.

These thresholds and reliefs are defined by legislation and may change in the future.

How Does the SDLT Surcharge Impact Buyers?

The additional 5% SDLT surcharge applies to purchases of second homes and buy-to-let properties and is charged on top of standard SDLT rates across the full purchase price.

As a result, buyers acquiring additional residential properties will generally pay a higher SDLT amount than those purchasing a main residence. This increase can have a material impact on the overall cost of a transaction and should be factored into budgeting at an early stage.

How to Use the Updated Stamp Duty Calculator

Our Stamp Duty Calculator is designed to provide a simple estimate of SDLT based on current legislation.

To use the calculator:

• Enter Property Value: Input the agreed purchase price

• Specify Property Type: Select whether the purchase is a main residence, a first-time buyer purchase, or an additional residential property

• View SDLT Estimate: The calculator will generate an estimated SDLT figure based on the information provided

The calculator provides an estimate only and does not take account of all possible reliefs, exemptions, or individual circumstances.

Example SDLT Calculations Using the New Rates

The following examples demonstrate how SDLT is calculated using current statutory thresholds and rates.

Example 1: First-Time Buyer Purchasing a £400,000 Property

• 0% on the first £300,000 = £0

• 5% on the remaining £100,000 = £5,000

Total SDLT Due: £5,000

Example 2: Primary Residence Purchase of £500,000

• 0% on the first £125,000 = £0

• 2% on the next £125,000 = £2,500

• 5% on the remaining £250,000 = £12,500

Total SDLT Due: £15,000

Example 3: Second Home Purchase of £300,000

Standard SDLT:

• 0% on the first £125,000 = £0

• 2% on the next £125,000 = £2,500

• 5% on the remaining £50,000 = £2,500

Additional property surcharge:

• 5% on £300,000 = £15,000

Total SDLT Due: £20,000

Important Note
These examples are illustrative only. SDLT is calculated on a slice basis and depends on individual circumstances, including ownership position, replacement of a main residence, and eligibility for reliefs. Buyers must confirm their SDLT liability with a qualified solicitor.

The Impact of SDLT Changes on Different Types of Buyers

SDLT affects buyers differently depending on their circumstances:

• First-Time Buyers: May benefit from SDLT relief on qualifying purchases up to £500,000, with 0% applying to the first £300,000

• Primary Residence Buyers: Pay SDLT based on standard thresholds and rates

• Second-Home and Investment Buyers: Face higher SDLT costs due to the additional property surcharge

Understanding these differences is essential when assessing overall purchase costs.

Considerations for Prospective Homebuyers and Investors

When planning a property purchase, buyers should consider:

• Financial Planning: SDLT can represent a significant upfront cost

• Affordability: Higher SDLT may affect overall funding and cash requirements

• Solicitor Consultation: SDLT rules are complex and subject to change

A qualified solicitor should always confirm the final SDLT position prior to completion.

Conclusion

Stamp Duty Land Tax remains a key consideration for anyone purchasing property in England or Northern Ireland. Changes to SDLT, including the higher surcharge on additional residential properties, have increased costs for certain buyers and should be factored into purchase planning at an early stage.

Our Stamp Duty Calculator provides a useful estimate based on current rules, but it should always be used alongside professional advice. Buyers are strongly advised to confirm their final SDLT liability with a solicitor to ensure accuracy and compliance before completion.