Stamp duty calculator

Buying a home can involve plenty of costs, the biggest of which (apart from the mortgage) is often Stamp Duty Land Tax, which buyers are required to pay in most circumstances.

A stamp duty calculator will help you to understand how much stamp duty you’ll need to pay, taking into account the value of the home and the stamp duty rate band it falls within.

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.

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

You have 30 days from your completion date to pay your stamp duty. 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 it applies to both new properties and second homes, and freehold and leasehold properties, whether you buy the properties outright or with a mortgage.

How much you’ll need to pay depends on a number of factors, which we explain below.

How is stamp duty calculated?

Working out stamp duty can be quite complex, and rates can vary if you’re a first-time buyer or if this is your second home. This is why using a stamp duty calculator can be useful.

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 Aug 2018 as shown at

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

Calculating stamp duty as a first-time buyer

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 on second homes

If you are 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, house boats, 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. Something to note is that 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.

You will, however, 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.

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

Find out how much stamp duty you’ll be expected to pay on your property by 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 an additional property, as well as the value of the property you’re interested in.

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

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.