Stamp Duty in 2026: What Homebuyers & Investors Need to Know

Stamp Duty Land Tax (SDLT) is one of the most important costs to factor in when buying property in England or Northern Ireland — and 2026 brings a landscape shaped by recent changes that buyers and investors should understand before they commit.

What Is Stamp Duty Land Tax (SDLT)?

Stamp Duty Land Tax is a tax charged by the UK government on property purchases. Unlike council tax or income tax, SDLT is a one-off payment made at the time of property purchase. You pay it if the price of the home or land you’re buying exceeds a certain threshold — and how much you pay depends on:

• the property price,
• whether it’s your main home,
• whether you’re a first-time buyer,
• and whether you’re buying an additional property (like a buy-to-let).

Thresholds & Rates from April 2025 Onwards (Still in Effect Through 2026)

The current SDLT regime, in place since 1 April 2025, tightened the nil-rate thresholds for most buyers. Here’s the situation as we enter 2026:

Main Residence (Standard Buyers) – England & Northern Ireland

For most buyers who have owned property before:

Property Price Band	SDLT Rate
Up to £125,000	0%
£125,001–£250,000	2%
£250,001–£925,000	5%
£925,001–£1.5m	10%
Above £1.5m	12%

 

So, if you buy a home for £300,000, you could end up paying SDLT on the slice above £125,000 — but not on the first £125,000.

First-Time Buyers

First-time buyers still benefit from relief — but the thresholds are lower than they used to be:

• No SDLT on the first £300,000
• 5% on portions between £300,001 and £500,000

However, if the property costs more than £500,000, the relief no longer applies and standard SDLT rates kick in on the entire price.

Example:
If you’re a first-time buyer purchasing a £400,000 home, you’ll pay 5% SDLT on the £100,000 above £300,000 — i.e. £5,000 SDLT in total.

Additional Properties & Buy-to-Let

If you’re buying an additional property (a second home or buy-to-let investment), you usually pay a 5% surcharge on top of the standard SDLT rates. So, the effective rate on the lower bands increases — making SDLT significantly more costly compared to buying your main residence.

Scotland & Wales — Different Rules

It’s important to note that SDLT applies only in England and Northern Ireland.

• In Scotland, you pay Land and Buildings Transaction Tax (LBTT).
• In Wales, you pay Land Transaction Tax (LTT) — and their rates and thresholds are different again.

Why the 2025 Changes Still Matter in 2026

Although the main SDLT reforms took effect in April 2025, there were no major new rate changes in the 2025 Autumn Budget, and those 2025 thresholds are continuing into 2026. The government has indicated its considering long-term property tax reform — potentially beyond SDLT — but nothing has yet replaced the current system.

Key Takeaways Before You Buy

• Stamp Duty is tiered: you only pay the higher rate on the portion of the price in each band.
• The nil-rate threshold for most buyers is just £125,000.
•  First-time buyer relief makes buying under £500,000 cheaper — but it’s more limited than in previous years.
• Additional properties always attract a surcharge.
• Always check devolved taxes if you’re buying in Scotland or Wales.

Final Tip: Plan Ahead

Stamp Duty can add thousands to your upfront costs, so it’s essential to factor it into your budget — whether you’re buying your first home, moving up the ladder, or investing in property. Speak to your conveyancer or mortgage adviser early to estimate your SDLT liability before you exchange contracts.

To learn more, check the government website.

If you need help securing a mortgage, get in touch, our expert team is here to help.