Home buyers must pay stamp duty when they purchase a property and the tax can add thousands on to their moving bills – our calculator lets you work out how much you would pay.
Stamp duty is levied at different rates above certain thresholds and has been tinkered with repeatedly over the years.
First-time buyers get a special stamp duty exemption, while buy-to-let and second home buyers pay more.
Stamp duty calculator
How much tax would you have to pay on a home or buy-to-let?
What has happened to stamp duty?
A stamp duty cut was announced by Chancellor Kwasi Kwarteng in his mini-Budget but home buyers hoping for a major overhaul were left disappointed.
The threshold at which stamp duty kicks in was immediately and permanently doubled from £125,000 to £250,000, but the rates did not change meaning the maximum saving is £2,500.
First-time buyers saw their exemption level raised from £300,000 to £425,000 and pay no stamp duty up to that level – saving them £6,250 if they buy a £4250,000 home.
Unfortunately, new Chancellor Jeremy Hunt later announced the changes would be reversed from the end of March 2025, but until then the rates and thresholds are as detailed below.
The move in the so-called mini-Budget is a cut to one of Britain’s least favourite taxes that has a far greater impact on some buyers than others.
While first-time buyers get a stamp duty exemption and those buying an average UK £270,000 home face bills of about £3,500, people buying family homes in more expensive areas can face bills of tens of thousands of pounds.
The mini-Budget cut to stamp duty, so nothing is paid up to £250,000, will save people far less than Rishi Sunak’s previous stamp duty holiday, which removed the tax up to £500,000.
Under the mini-Budget stamp duty cut buyers will save a maximum of £2,500, whereas under Sunak’s stamp duty holiday they could save a maximum of £15,000.
| Band | Stamp duty land tax rate | Additional rate for landlords / second homes |
|---|---|---|
| First-time buyers pay 0% to £425,000 then normal rates apply | ||
| £0 – £250k | 0% | 3% |
| £250,001 – £925k | 5% | 8% |
| £925,001 – £1.5m | 10% | 13% |
| £1.5m + | 12% | 15% |
| * No stamp duty is paid on property transactions costing less than £40,000 as these are considered low value and not reported to HMRC | ||
| Band | Stamp duty land tax rate | Additional rate for landlords / second homes |
|---|---|---|
| First-time buyers pay 0% to £300,000 then normal rates apply | ||
| £0 – £125k | 0% | 3% |
| £125,001 – £250k | 2% | 5% |
| £250,001 – £925k | 5% | 8% |
| £925,001 – £1.5m | 10% | 13% |
| £1.5m + | 12% | 15% |
| * No stamp duty is paid on property transactions costing less than £40,000 as these are considered low value and not reported to HMRC | ||
How much stamp duty would you pay?
Average £270,000 home: £1,000
£350,000 home: £5,000
£450,000 home: £10,000
£500,000 home: £12,500
£750,000 home: £25,000
£1,000,000 home: £41,250
A permanent cut to stamp duty has been made in Kwasi Kwarteng’s mini-Budget but it will only save buyers a maximum of £2,500
How stamp duty works
Stamp duty is charged on the purchase price of a home and levelled at different rates above thresholds.
First-time buyers had a stamp duty exemption up to £300,000, which has now been raised to £425,000. They have a maximum purchase price ceiling aboive which the exemption does not apply and this has also been lifted to £625,000.
Previously, stamp duty kicked in above a threshold of £125,000 at 2 per cent and then stepped up to 5 per cent above £250,000
Now the first £250,000 is tax-free and amounts above that are charged at 5 per cent until the 10 per cent threshold at £925,000.
For first-time buyers, the first £425,000 is tax free and then the 5 per cent rate kicks in. If they buy a property costing more than £625,000 they lose their exemption
The last major permanent stamp duty reform by George Osborne saw bills eased for some home buyers further down the price ladder and cliff edges removed, but higher charges for those buying expensive homes.
Stamp duty bills still remain substantial for those buyers under Kwasi Kwarteng’s cut, but they will see a reduction of £2,500.
In April 2016, stamp duty on buy-to-let and other additional properties was reformed, with the addition of a new 3 per cent surcharge on all rates. This will remain under the new higher threshold system. It means that stamp duty rates for buy-to-lets and second homes start at 3 per cent up to £250,000, rising to 8 per cent above this.
Best mortgage rates and how to find them
Mortgage rates have risen substantially as the Bank of England’s base rate has climbed rapidly.
If you are looking to buy your first home, move or remortgage, or are a buy-to-let landlord, it’s important to get good independent mortgage advice from a broker who can help you find the best deal.
To help our readers find the best mortgage, This is Money has partnered with independent fee-free broker L&C.
Our mortgage calculator powered by L&C can let you filter deals to see which ones suit your home’s value and level of deposit.
You can also compare different mortgage fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes, with monthly and total costs shown.
Use the tool at the link below to compare the best deals, factoring in both fees and rates. You can also start an application online in your own time and save it as you go along.
