Finance⏱ 5 min read
How to Calculate Stamp Duty (SDLT) on a Property Purchase
Stamp duty is one of the largest upfront costs of buying a home — and the calculation is tiered, not flat rate. Here's exactly how it works in 2024/25 with worked examples.
Stamp Duty Land Tax (SDLT) catches many buyers off guard — especially those who think it's a simple percentage of the purchase price. It's tiered, like income tax, and a few thresholds can make a significant difference to your upfront costs.
The 2024/25 SDLT Bands (Standard Residential)
Property Price BandSDLT RateTax on This Portion
Up to £250,0000%£0
£250,001 – £925,0005%Up to £33,750
£925,001 – £1,500,00010%Up to £57,500
Over £1,500,00012%12% on excess
Note: First-time buyer relief applies different thresholds — see below.
How the Tiered Calculation Works
Like income tax, you pay the rate only on the portion of the price in each band — not on the total purchase price.
Example: Buying at £400,000 (standard rate)
Band 1: £0 – £250,000 at 0% = £0
Band 2: £250,001 – £400,000 (£150,000) at 5% = £7,500
Total SDLT = £7,500
First-Time Buyer Relief
First-time buyers pay no SDLT on the first £425,000 (on properties up to £625,000):
Band (First-Time Buyer)RateNotes
Up to £425,0000%FTB relief
£425,001 – £625,0005%FTB relief
Above £625,000Standard rates applyNo FTB relief
First-time buyer buying at £500,000:
Band 1: £0 – £425,000 at 0% = £0
Band 2: £425,001 – £500,000 (£75,000) at 5% = £3,750
Total SDLT = £3,750
Standard buyer same property: £12,500
Saving: £8,750
Additional Dwelling Surcharge
Buying a second home, buy-to-let, or any additional residential property attracts a 3% surcharge on top of standard rates across all bands:
Buy-to-let at £250,000:
Standard rate: £0
Plus 3% surcharge: £250,000 × 3% = £7,500
Total SDLT: £7,500
Standard residential purchase at same price: £0
Comparing Purchases Around the Threshold
Purchase PriceStandard SDLTFirst-Time Buyer
£200,000£0£0
£300,000£2,500£0
£400,000£7,500£0
£500,000£12,500£3,750
£750,000£25,000Standard rates (over £625k)
£1,000,000£43,750Standard rates
Scotland and Wales
Scotland uses Land and Buildings Transaction Tax (LBTT) and Wales uses Land Transaction Tax (LTT) — both have different bands and rates from English SDLT. If buying in Scotland or Wales, use the appropriate calculator for your jurisdiction.