Stamp duty is the big upfront cost buyers love to forget, and for anyone who isn't a first-time buyer the bill starts sooner than you'd think. Buying a second home or a rental adds a hefty surcharge on top. Knowing the bands — and where the surcharge kicks in — lets you budget properly and avoid a nasty surprise from your solicitor. Here is how stamp duty works in 2025/26 for England and Northern Ireland.
- Standard stamp duty is charged in bands — you pay each rate only on the slice in that band.
- Nothing is due on the first £125,000, then 2%, 5%, 10% and 12% on higher slices.
- A home mover on a £300,000 house pays £5,000.
- Second homes and buy-to-let pay a 5% surcharge on the whole price on top.
The standard rates
For a main home that isn't your first, Stamp Duty Land Tax (SDLT) is charged in bands. You only pay each rate on the portion of the price within that band:
| Portion of price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1.5m | 10% |
| Above £1.5m | 12% |
First-time buyers get more generous treatment (nothing up to £300,000) — covered in our first-time buyer stamp duty guide. Everyone else uses the table above.
Worked example: a £300,000 home
First £125,000
0% = £0.
£125,001 to £250,000
2% on £125,000 = £2,500.
£250,001 to £300,000
5% on £50,000 = £2,500.
Total stamp duty
£5,000.
So a typical home mover buying at £300,000 pays £5,000. Run any price through the stamp duty calculator to get the exact figure before you offer.
The second-home and buy-to-let surcharge
Here is the one that stings. If you are buying an additional property — a second home, a holiday let or a buy-to-let — while keeping another, you pay a 5% surcharge on the entire price, on top of the standard rates.
The surcharge applies to the whole price, not just a slice On a £300,000 second home, the 5% surcharge is £15,000 — added to the £5,000 standard duty for a total of £20,000. The surcharge also catches people who haven't sold their old home before completing on the new one, though you can often reclaim it if you sell the previous main residence within 36 months.
What about Scotland and Wales?
Stamp duty (SDLT) only applies in England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT), each with its own bands and surcharges. If you are buying there, the figures above don't apply — check the relevant national rates.
Budgeting for it
Stamp duty must be paid within 14 days of completion, and it can't normally be added to your mortgage — it is upfront cash. Alongside the deposit, legal fees and survey, it is a core part of the money you need on the day. The house buying costs calculator totals everything so you know the real cash required.
Frequently asked questions
For a main home that isn't your first, nothing up to £125,000, then 2% to £250,000, 5% to £925,000, 10% to £1.5m and 12% above. A £300,000 home costs £5,000.
Yes, plus a 5% surcharge on the entire purchase price on top of the standard rates. On a £300,000 second home that is £15,000 extra.
Often yes — if you were replacing your main residence but hadn't sold the old one in time, you can usually reclaim the surcharge if you sell within 36 months.
No. SDLT applies in England and Northern Ireland. Scotland uses LBTT and Wales uses LTT, with different bands.
Within 14 days of completion, usually handled by your solicitor. It is an upfront cash cost and cannot normally be added to the mortgage.
Figures are 2025/26 estimates for England and Northern Ireland. Confirm your exact liability with your conveyancer before committing.