Stamp duty calculator (UK)

Besides your mortgage, the biggest cost when buying a home is usually stamp duty.

Most buyers are required to pay stamp duty, but there are a few exceptions.

A stamp duty calculator will help you understand how much you’ll need to pay. It will take into account the price of your home and the stamp duty rate band it falls into.

What is stamp duty?

Stamp Duty Land Tax (SDLT) is a tax in England and Northern Ireland. It applies to residential properties – or pieces of land – that cost more than £125,000.

There are exceptions for first time buyers and those buying additional properties, which we explain further down the page.

Scotland and Wales have their own equivalent:

  • Land and Buildings Transaction Tax (LBTT) is paid in Scotland
  • Land Transaction Tax (LTT) is paid in Wales

Stamp duty must be paid within 30 days from the date you move in. Failure to do so could result in a fine or interest added to the amount due.

Traditionally your solicitor looks after this transaction for you, but it doesn’t hurt to be aware of what it is and how it is calculated.

Stamp duty is paid as a lump-sum and applies to both new properties and second homes, freehold and leasehold properties, and homes bought outright or with a mortgage.

How to calculate stamp duty

Buying in England and Northern Ireland (NI)

The standard rate bands for stamp duty are as follows*:

  • 0% stamp duty = on first £0 - £125,000 of property
  • 2% stamp duty = on next £125,001 - £250,000 of property
  • 5% stamp duty = on next £250,001 - £925,000 of property
  • 10% stamp duty = on next £925,001 - £1.5 million of property
  • 12% stamp duty = above £1.5 million of property

Figures accurate as of Jun 2019 as shown at gov.uk

The rate of stamp duty you’ll pay isn’t confined to just one of these bands. Each band applies to the equivalent portion of the property price. For example, if you bought a house for £300,000, the stamp duty you’d pay would be:

  • The first £125,000 x 0% = £0
  • The next £125,000 x 2% = £2,500
  • The final £50,000 x 5% = £2,500

Total stamp duty = £5,000

First-time buyers in England and NI

If you’re a first-time buyer, you’ll be able to benefit from some stamp duty relief on properties up to the value of £500,000.

So when you’re buying a home up to the value of £300,000, you won’t have to pay any stamp duty at all.

When you buy a property of between £300,000 and £500,000, you won’t have to pay anything on the first £300,000, but you will have to pay a rate of 5% for the remaining portion.

For example, on a property for the value of £450,000, your stamp duty would be:

  • The first £300,000 x 0% = 0%
  • The remaining £150,000 x 5% = £7,500

Total stamp duty = £7,500

To be eligible to receive this discount, you’ll need to meet the following criteria:

  • All parties involved in purchasing the property must be first-time buyers
  • Your property can’t exceed a value of £500,000

If you’re a first-time buyer and the property you are buying is over £500,000, you’ll be required to follow the standard rate bands.

Stamp duty Scotland

For a single property purchase, no tax is paid on the first £145,000.

Between £145,000 and £250,000 buyers pay 2% within this band, and 5% on the part between £250,000 and £325,000, 10% within the next band up to £750,000 and 12% over that.

The initial threshold for first-time buyers in Scotland is £175k.

Stamp duty Wales

LTT is usually exempt on the first £180,000 of the property.

Between £180,000 and £250,000 buyers will pay 3.5% within this band, 5% on the part between £250,000 and £400,000, 7.5% on the part between £400,000 and £750,000, 10% within the next band up to £1.5 million, and 12% over that.

There’s currently no relief for first-time buyers under the Welsh system, but the higher zero tax threshold of £180k should represent most first-time purchases.

Buy-to-let stamp duty & stamp duty on a second property

Calculating stamp duty on second homes is different. If you’re buying a second home – meaning that you now have multiple properties – or a buy-to-let property, you’ll be required to pay an additional 3% on the standard stamp duty rates.

This rate applies to properties over £40,000, but excludes mobile homes, houseboats, and caravans.

If you’re buying a new home but you’re not a first-time buyer, you’ll only be required to pay the standard stamp duty rates. But if your main residence hasn’t been sold by the time you complete your new purchase, you’ll have to pay the higher rates given that you technically own two properties.

Thankfully, you’ll be able to get a refund once you’ve sold your original home – as long as it’s within 36 months of the original purchase.

Buying a leasehold property

Stamp duty isn’t impacted by the tenure of the property. So if you’re thinking of buying a leasehold property rather than a freehold, you won’t need to make any special arrangements.

Buying a commercial property

Calculating stamp duty on land and non-residential property (including mix-use land and property) is also different - you’ll pay land tax on increasing portions of the property for transactions over £150,000.

When is stamp duty not applicable?

There are a couple of scenarios where stamp duty land tax isn’t required:

  • If you’re buying a property valued below £125,000
  • If you’re transferring the deeds of your home to someone

Using a stamp duty calculator

Calculating your stamp duty using a calculator is easy.

You’ll need to state whether you’re buying for the first time, buying your next home, or buying an additional property. You’ll also be asked the value of the property you’re interested in buying.

The new home stamp duty calculator should immediately calculate the total Stamp Duty Land Tax that will be required, along with a breakdown of how that figure was reached.

There are a range of stamp duty tax calculators out there, including HMRC’s stamp duty calculator.

Your mortgage adviser can provide you with general information on the rates payable. However, if you need advice on any tax implications, then you should speak to an independent tax and legal specialist as mortgage advisers are not qualified to give tax advice.