Stamp Duty Calculator: How Much Will I Have to Pay?

A stamp duty calculator can help you work out how much property tax you’ll need to pay when buying a home in England, Northern Ireland, Scotland and Wales. There are different stamp duty thresholds, and some buyers may be exempt from paying any tax at all.

Brean Horne Last updated on 31 May 2022.

Stamp duty is a property tax you may need to pay when buying a house in England and Northern Ireland. Use our stamp duty calculator to estimate how much you may need to pay. Then simply adjust the property purchase price using the slider below.

What is stamp duty?

Stamp Duty Land Tax (SDLT), or stamp duty, is a type of tax you pay when buying a home in England and Northern Ireland. The amount of stamp duty you have to pay varies depending on several factors, such as whether you’re a first-time buyer, if you are a UK resident and the value of the property. In addition, both Scotland and Wales have their own types of property tax that work in a similar way to stamp duty.

Who pays stamp duty?

Stamp duty is paid by the person purchasing a property. Usually, the buyer’s solicitor, conveyancer or agent files a return to HM Revenue and Customs (HMRC) and pays any stamp duty on the day you complete the property purchase on your behalf.

In some cases, you may need to file and post a return and pay the tax yourself if this isn’t arranged for you. It’s important to make sure any stamp duty is paid within14 days of completion, otherwise you will be charged penalties

How much is stamp duty?

The amount of stamp duty buyers have to pay varies depending on several factors. The value of a property influences stamp duty because there are different tax thresholds depending on how much it costs.

A property’s location may affect how much stamp duty you pay because Scotland and Wales have their own versions of the tax with different rates.

Whether you’re a first-time buyer or purchasing an additional home will also affect how much property stamp duty tax you pay. Typically first-time buyers qualify for a stamp duty discount, while additional home buyers may pay higher stamp duty rates.

Stamp duty rates in England and Northern Ireland

The table below shows the latest stamp duty rates for buyers in England and Northern Ireland from 1 October 2021.

Property purchase price

Stamp duty rate

Up to £125,000

0%

£125,001 to £250,000   

2%

£250,001 to £925,000

5%

£925,001 to £1.5 million

10%

Over £1.5 million

12%

Source: Gov.uk

How is stamp duty calculated?

Stamp duty is calculated in a similar way to income tax and uses a ‘tiered’ structure.

This means the same level of tax isn’t applied to the total property price. Instead, you’ll pay tax on each portion of the property price that falls into the different stamp duty tax bands.

According to government figures, if you bought a house for £295,000 the amount of stamp duty you have to pay is calculated like this:

  • 0% on the first £125,000 = £0
  • 2% on the next £125,000 = £2,500
  • 5% on the final £45,000 = £2,250
  • Total: £4,750

When do you pay stamp duty?

Stamp duty must be paid within 14 days of the completion of the property purchase. You’ll need to file a return to HMRC and pay any stamp duty due. Usually, this is done through a solicitor or conveyancer on your behalf. But you may need to file and post a paper return yourself and pay the tax if they don’t arrange this for you.

Stamp duty exemptions

First-time buyers in England and Northern Ireland may be exempt from paying stamp duty.

Currently, first-time buyers don’t pay stamp duty on properties up to £300,000. And will pay 5% on the portion of the property costing £300,001 to £500,000. There is no stamp duty relief for homes priced over £500,000.

Other buyers may be exempt from stamp duty if:

  • the property is worth less than £40,000
  • property is left to you in a will
  • property is transferred to you in a divorce or dissolution of a civil partnership
  • you use alternative financial property agreements – for example, to comply with Sharia law
  • you buy a new or assigned lease of more than seven years

A full list of stamp duty exemptions in England and Northern Ireland is available on Gov.uk.

Do non-UK residents pay stamp duty?

Non-UK residents must pay stamp duty on properties purchased in England and Northern Ireland. Stamp duty rates for non-UK residents are 2% higher than standard stamp duty rates for UK residents.

Do you pay stamp duty on shared ownership properties?

You may have to pay stamp duty on a shared ownership property that costs over £300,000.

When you buy a shared ownership property, there are two options for paying it off:

  • Lump-sum payment: You make a one-off payment based on the total price of a property.
  • Paying in stages: You pay stamp duty on your initial share of the property and pay again when you buy more shares. This is known as staircasing.

How do I pay stamp duty?

Stamp duty is paid through HMRC online or through the post if it is managed by the buyer’s solicitor or conveyancer, who files a return and pays any stamp duty on your behalf.

You’ll have to arrange your stamp duty payment yourself if this isn’t done for you. Falling to pay the right amount of stamp duty will result in penalties being added to your bill. For example, delay for 12 months in England or Northern Ireland and you may have to pay a penalty of all the stamp duty tax you owe.

You don’t have to file a tax return for some property or land transactions, where buyers are exempt from paying stamp duty (see the list above).

How to claim back stamp duty

You may be eligible for a stamp duty refund if you think you overpaid.

HMRC usually issues the refund first and checks whether your claim is accurate afterwards. It may take up to nine months for HMRC to confirm whether your refund is correct.

If HMRC finds that you claimed the wrong amount or weren’t entitled to a stamp duty refund, you will have to repay the money, plus interest. You may also have to pay a penalty.

So it’s worth waiting to apply for your stamp duty refund until you have confirmation that the refunded amount is accurate.

Do you pay stamp duty on a second home?

Yes, you must pay stamp duty if you buy a home in addition to your main residence. Currently, second-home buyers pay 3% in addition to standard stamp duty tax rates.

If you’re just moving home and the new property becomes your only residence, then you won’t have to pay the 3% surcharge.

There is one exception to be aware of, though. if you purchase a new home before selling your current property then you have to pay the 3% surcharge. This is because you technically still own two properties. However, you can claim a refund if you sell your previous home within 36 months.

Can I add stamp duty to my mortgage?

You can add the cost of stamp duty to your mortgage. However, this will affect the cost of your mortgage repayments and the amount of interest you owe. It will also affect the loan-to-value (LTV) rate of your mortgage and if it pushes you into a higher LTV it may reduce the number of mortgage deals available to you.

Stamp duty rates in Scotland

In Scotland, buyers pay Land and Buildings Transaction Tax (LBTT) instead of stamp duty when buying a home.

The table below shows LBTT rates for buyers in Scotland from 1 April 2021.

Property purchase price

LBTT rate

Up to £145,000

0%

£145,001 to £250,000   

2%

£250,001 to £325,000

5%

£325,001 to £750,000

10%

Over £750,000

12%

Source: Gov.Scot

Buyers purchasing an additional property in Scotland worth over £40,000, must pay an Additional Dwelling Supplement (ADS). ADS is charged at 4% of the total purchase price of the property.

The LBTT threshold for first-time buyers in Scotland is £175,000.

In Scotland, you must send a tax return if you pay more than £40,000 for a property even if there is no LBBT to pay, though there are some exemptions. You can find out more about this and about penalties for paying tax late on LBTT at Revenue.scot.

Stamp duty rates in Wales

Buyers in Wales pay Land Transaction Tax (LTT) rather than stamp duty.

The table below shows LTT rates for buyers in Wales from 1 July 2021.

Property purchase price

LTT rate

Up to £180,000

0%

£180,001 - £250,000

3.5%

£250,001 - £400,000

5%

£400,000 - £750,000

7.5%

£750,000 - £1.5 million

10%

Over 1.5 million

12%

Source: Gov.Wales

First-time buyers in Wales don’t currently get any LTT relief. Also, if you buy an additional home, you may have to pay higher LTT rates.

You don’t need to file a tax return for some property or land transactions in Wales if you are exempt from paying LTT. For more details on this and on penalties for paying LTT late, visit Gov.wales.

Where can I find the best mortgage deals?

Shopping around can help you find the best mortgage offers. Price comparison sites can be a great place to start and can help you compare mortgages quickly. Speaking to an independent mortgage adviser can also help you find the best deals for your financial circumstances.

It’s always worth taking steps to get your finances in order to help you access the best mortgage deals. Check your credit score to make sure you are in a good position to make a mortgage application. Although it may be possible to get a mortgage with a lower credit score, try to improve your credit history to help you unlock better deals and cheaper interest rates.

About the author:

Brean is a personal finance writer at NerdWallet. She covers a range of financial topics and has written for consumer titles including Which?, Moneywise and The Motley Fool. Read more

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