Stamp Duty Land Tax (SDLT) for First-Time Buyers in England 2026
Stamp Duty Land Tax (SDLT) is one of the largest upfront costs when buying a home in England. First-time buyers get significant relief — but only up to certain price thresholds. This guide explains the current 2026 rates, how first-time buyer relief works, and includes worked examples.
Standard SDLT Rates in England (2026)
From April 2025, the temporary SDLT relief thresholds introduced in 2022 have reverted to their previous levels. The standard SDLT rates for residential properties in England now apply as follows:
- Up to £125,000: 0% - £125,001 to £250,000: 2% - £250,001 to £925,000: 5% - £925,001 to £1.5 million: 10% - Above £1.5 million: 12%
SDLT is a tiered tax — you pay each rate only on the portion of the price that falls within that band, not the full price.
| Price Band | Rate | Effective on this portion |
|---|---|---|
| Up to £125,000 | 0% | £0 |
| £125,001–£250,000 | 2% | Up to £2,500 |
| £250,001–£925,000 | 5% | Up to £33,750 |
| £925,001–£1.5m | 10% | Up to £57,500 |
| Over £1.5m | 12% | Unlimited |
First-Time Buyer Relief
First-time buyers in England pay no SDLT on the first £425,000 of a property purchase, and 5% on the portion between £425,001 and £625,000. If the property costs more than £625,000, no first-time buyer relief is available — standard rates apply in full.
This means first-time buyers purchasing at up to £425,000 pay zero stamp duty. Between £425,000 and £625,000, they save substantially compared to standard rates.
Worked Examples
Example 1 — First-time buyer, £350,000 property: Using first-time buyer relief: £0 stamp duty (entire price falls within the £425,000 zero-rate band). Standard rate (non-FTB): £7,500 (0% on first £125k + 2% on next £125k + 5% on final £100k). First-time buyer saving: £7,500.
Example 2 — First-time buyer, £500,000 property: FTB relief: 0% on first £425,000 = £0, plus 5% on £75,000 = £3,750. Total: £3,750. Standard rate: 0% on £125k + 2% on £125k + 5% on £250k = £17,500. First-time buyer saving: £13,750.
Additional Dwelling Supplement
Buyers purchasing an additional residential property (second home, buy-to-let) pay a 3% surcharge on top of standard SDLT rates on the entire purchase price. For example, a £300,000 buy-to-let purchase attracts 3% additional SDLT = £9,000 surcharge plus standard SDLT.
The surcharge does not apply to first-time buyers purchasing their only home. It applies from the first pound of the purchase price.
When and How to Pay SDLT
SDLT must be paid and the return submitted to HMRC within 14 days of completion. Your solicitor or conveyancer handles this automatically as part of the conveyancing process. They will include the SDLT amount in your completion statement and transfer the funds to HMRC on your behalf.
Keep your SDLT receipt — you may need it if you later claim a repayment (for example, if you sell a property that was subject to the additional dwelling surcharge).
Frequently asked questions
Do first-time buyers pay stamp duty in England in 2026?+
First-time buyers in England pay zero SDLT on properties up to £425,000. Between £425,001 and £625,000, they pay 5% on the amount above £425,000. Properties above £625,000 attract standard SDLT rates with no first-time buyer relief.
When did SDLT thresholds change?+
The temporarily raised SDLT thresholds introduced in September 2022 expired on 31 March 2025. From April 2025, the standard threshold for the zero-rate band reverted from £250,000 to £125,000. First-time buyer relief thresholds also reverted from £500,000 to £425,000.
Is SDLT the same in Scotland and Wales?+
No. Scotland has its own Land and Buildings Transaction Tax (LBTT) and Wales has Land Transaction Tax (LTT). Both have different rate structures and relief thresholds. The SDLT rules described in this article apply only to properties in England and Northern Ireland.
How is SDLT paid?+
Your solicitor or conveyancer calculates, files, and pays SDLT to HMRC within 14 days of completion. The amount is included in your completion statement. You do not need to contact HMRC directly — your legal professional handles this as part of the conveyancing process.
Looking for a professional?
Connect with certified property professionals on Home1. Compare profiles, read reviews, and get in touch — free.