Buying your first home is one of the biggest financial decisions you’ll make, and stamp duty land tax (SDLT) is a cost that catches many first-time buyers off guard. With property prices continuing to rise across the UK,
understanding exactly how much stamp duty you’ll pay — and what relief you’re entitled to — is essential for budgeting accurately.
What Is Stamp Duty?
Stamp Duty Land Tax is a tax you pay when purchasing property or land in England and Northern Ireland. The amount depends on the purchase price, whether you’re a first-time buyer, and whether you already own another property. Scotland and Wales have their own versions — Land and Buildings Transaction Tax (LBTT) and Land Transaction Tax (LTT) respectively — with different thresholds and rates that buyers in those countries need to be aware of.
First-Time Buyer Relief in 2026
First-time buyers in England and Northern Ireland currently benefit from significant stamp duty relief. You pay no stamp duty on properties up to £425,000. Between £425,001 and £625,000, you pay 5% on the amount above £425,000. Properties over £625,000 don’t qualify for first-time buyer relief at all, and standard rates apply to the entire purchase price.
To give a practical example: if you buy your first home for £350,000, you’ll pay zero stamp duty thanks to the relief. If you buy for £500,000, you’ll pay 5% on £75,000 (the amount above £425,000), which equals £3,750. Without the relief, that same £500,000 property would cost you £12,500 in stamp duty — a saving of £8,750.
Standard Rates for Non-First-Time Buyers
If you’ve owned property before, the standard SDLT rates apply: 0% up to £250,000, 5% on the portion between £250,001 and £925,000, 10% between £925,001 and £1.5 million, and 12% on anything above £1.5 million. Importantly, buying an additional property — such as a buy-to-let — adds a 3% surcharge across all bands, which can significantly increase your tax bill.
Scotland and Wales Work Differently
Scottish first-time buyers benefit from no LBTT on properties up to £175,000, with rates starting at 2% on the portion between £175,001 and £250,000. In Wales, there is currently no specific first-time buyer relief — everyone pays the same LTT rates, which start at 6% on the portion between £225,000 and £400,000. This makes Wales potentially more expensive for first-time buyers than England.
Budgeting for Stamp Duty
Stamp duty can add thousands to your upfront moving costs, so it’s vital to factor it into your budget before you start viewing properties. You’ll need to pay it within 14 days of completion, and your solicitor typically handles the payment to HMRC. Failing to budget for this can leave you scrambling for funds at the last minute.
Before you start making offers, use a stamp duty calculator like the one on PayToolkit to work out exactly what you’ll pay based on your purchase price, location, and buyer status. It takes seconds and could save you from a costly budgeting mistake.
Understanding your full buying costs upfront helps you focus on properties you can genuinely afford and avoids nasty surprises further down the line.
