How much is the stamp duty on house purchase (calculated)

  • You are a first-time homebuyer looking to purchase a property in the UK
  • Stamp duty is calculated using a tiered or banded structure, where different tax rates apply at different property price thresholds.
  • You only pay the corresponding tax rate on the portion of the property price that falls within each tax bracket.

For example:

  • 0% on the first £425,000 of the property price
  • 5% on the portion between £425,001 to £925,000
  • 10% on the portion between £925,001 to £1.5 million
  • 12% on the remaining amount above £1.5 million

With the tax rates increasing at each threshold. But you don’t pay the higher tax rate on the full price – just on the amount that exceeds each bracket.

Buyers moving to a new property but not being their first time are on a different tiered %, second-home buyers and BTL (buy-to-let) landlors are on a different and non-UK residents are tax differently too.

  • For example: for first-time purchase of £435,000 property, the stamp duty calculation would be:
  • First £425,000: No stamp duty
  • Next £10,000 (£435,000 – £425,000): 5% of £10,000 = £500

Therefore, the total stamp duty you would have to pay as a first-time homebuyer on a £435,000 property is £500.

This stamp duty relief for first-time buyers makes purchasing your first home much more affordable. Without the relief, you would have had to pay £12,500 in stamp duty on a £435,000 property based on the standard rates.

The first-time buyer discount saves you £12,000 in this case.

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George Nicola

George is a seasoned interior designer and property marketing strategist with over 13 years of experience. He specializes in transforming properties into visually stunning spaces, helping clients recognize the potential and beauty in each property. With an impressive international client base of exciting projects throughout Europe and America.

Purpose of the blog post: To share examples buying a property in the UK and figure out how much stamp duty you’ll need to pay.

With stamp duty rates being tiered based on property price thresholds, calculating the tax due can get confusing.

Topics covered in the post: Whether you’re a first-time buyer purchasing a modest flat or an investor buying a multi-million pound mansion, these examples will help you understand exactly how much stamp duty tax you can expect to pay. 

We’ve looked at set of scenarios that demonstrate how to arrive at the stamp duty owed based on the stamp duty formula, the latest property price (stamp duty bracket) brackets and tax rates.

90+ examples of stamp duty calculations for your own home, for your next home, second home, buy to let and additional investment properties – buying or selling situation.

You’ll also gain clarity on how factors like first-time buyer relief, additional properties, applicable rates, and threshold levels impact the total stamp duty bill.

(Disclaimer: The information provided is accurate as per 2023 and is for general purposes only. We do not guarantee the accuracy or suitability of the website or any information contained in this post. It’s important to note that the author is not a financial, tax, or legal advisor, and it’s recommended to consult a professional before making decisions related to stamp duty. The author will not be responsible for any losses or damages resulting from the use of this information.)

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How is stamp duty calculated and why?

Stamp duty is calculated using a tiered or banded structure, where different tax rates apply at different property price thresholds.

The purpose is to determine how much tax you owe based on the portion of the property price that falls within each tax bracket.

You only pay the corresponding tax rate on the part of the price within that band. The rates increase at higher price thresholds.

How the Stamp Duty Calculator works?

Home movers example: To calculate as per gov.uk’s stamp duty formula, the percentage tax on the amount exceeding £250,000:

  1. First, we determine the amount on which you’re paying tax: £250,100 – £250,000 = £100

  2. Next, determine how much tax you’re paying on that amount by moving to step (3)

  3. Percentage tax rate calculation: Tax Rate %=(Tax AmountTaxable Amount)×100 

An example of calculating the stamp duty formula
An example of calculating the stamp duty formula

Stamp duty on A house for First-Time Homebuyer Examples

As a first-time buyer in the UK, you can take advantage of stamp duty relief to save thousands of pounds in tax when purchasing your first home. The relief allows you to pay no stamp duty on the first £425,000 of the property price.

We’ll start with some examples for first-time buyers purchasing starter homes and lower priced properties. These scenarios demonstrate how the relief works and show how much stamp duty first-timers can save.

A couple holding a sign that says £0 Stamp Duty for the first £425,000
A couple holding a sign that says £0 Stamp Duty for the first £425,000

Stamp duty on under 425k property

These example show the stamp duty calculation for a property under:

  • £120,000
  • £182,000
  • £200,000
  • £235,000
  • £282,000
  • £312,000
  • £325,000
  • £395,000
  • £405,000
  • £425,000

first-time buyers can claim 100% stamp duty relief on the first £425,000 of the property price.

For this £235,000 property, the first-time buyer owes £0 in stamp duty thanks to the generous relief. This demonstrates how purchasing your first home below £425,000 allows you to avoid stamp duty completely.

Stamp duty on over 425k property

£450,000 Property

Now we’ll look at a £450,000 first home, which exceeds the relief limit:

The portion between £425,001-£450,000 is taxed at 5% (effective rate 0.28%), resulting in £1,250 owed.

But the first £425,000 remains tax free.

£475,000 Property

Now we’ll look at a £450,000 first home, which exceeds the relief limit:

As the price moves higher, more falls into the 5% band between £425k-£925k.

The portion between £425,001-£925,000 is taxed at 5%, resulting in £2,500 owed (tax rate 0.53%)

But the first £425,000 remains tax free.

£500,000 Property

Here is the stamp duty on a £500,000 first home:

Owed £3,750 in stamp duty (tax rate 0.75%)

  • £550,000 first property: £6,250 owed in stamp duty (tax rate 1.14%)
  • £590,000 first property: £8,250 owed in stamp duty (tax rate 1.40%)
  • £635,000 first property: £19,250 owed in stamp duty (tax rate 3.03%)
  • £650,000 first home: £20,000 owed in stamp duty (tax rate 3.08%)
  • £690,000 first home: £22,000 owed in stamp duty (tax rate 3.19%)
  • £750,000 first home: £25,000 owed in stamp duty (tax rate 3.33%)
  • £775,000 first home: £26,250 owed in stamp duty (tax rate 3.39%)
  • £800,000 first home: £27,500 owed in stamp duty (tax rate 3.44%)
  • £840,000 first home: £29,500 owed in stamp duty (tax rate 3.51%)
  • £875,000 first home: £31,250 owed in stamp duty (tax rate 3.57%)
  • £900,000 first home: £32,500 owed in stamp duty (tax rate 3.61%)
  • £920,000 first home: £33,500 owed in stamp duty (tax rate 3.64%)
  • £950,000 first home: £36,250 owed in stamp duty (tax rate 3.82%)
  • £995,000 first home: £40,750 owed in stamp duty (tax rate 4.10%)
  • £1,000,000 first home: £41,250 owed in stamp duty (tax rate 4.13%)
  • £1,100,000 first home: £51,250 owed in stamp duty (tax rate 4.66%)
  • £1,200,000 first home: £61,250 owed in stamp duty (tax rate 5.10%)
  • £1,350,000 first home: £76,250 owed in stamp duty (tax rate 5.65%)
  • £1,400,000 first home: £81,250 owed in stamp duty (tax rate 5.80%)
  • £1,450,000 new build home: £86,250 owed in stamp duty (tax rate 5.95%)
  • £1,500,000 new build home: £91,250 owed in stamp duty (tax rate 6.08%)
  • £1,550,000 new build home: £97,250 owed in stamp duty (tax rate 6.27%)
  • £1,900,000 new build home: £139,250 owed in stamp duty (tax rate 7.33%)
  • £2,600,000 new home: £223,250 owed in stamp duty (tax rate 8.59%)
  • £3,000,000 new home: £271,250 owed in stamp duty (tax rate 9.04%)
  • £3,500,000 new home: £331,250 owed in stamp duty (tax rate 9.46%)

The first £425,000 remains tax free.

Stamp duty on A house for Home Mover Examples

A group of people looking at a map of stamp tax forms.
A group of people looking at a map of stamp tax forms.

If you already own a property and are looking to purchase a new home that will become your primary residence, you fall into the home mover category for stamp duty purposes.

The stamp duty bands and rates for home movers are different than those for first-time buyers. As a home mover purchasing in England, here are the tax bands that apply:

  • 0% on the first £250,000 of the property price
  • 5% on the portion between £250,001 to £925,000
  • 10% on the portion between £925,001 to £1.5 million
  • 12% on the amount above £1.5 million

So the initial 0% tax-free allowance for home movers is lower than for first-timers. However, home movers do still get a discount compared to buy-to-let investors and second home purchasers.

In the following examples, we’ll walk through stamp duty calculations for home movers purchasing properties at various prices. You’ll see how the tax owed increases as more of the purchase price surpasses each threshold.

most common property under 250k in UK

The top 3 most common affordable property types in the UK are terraced houses, flats/apartments, and semi-detached houses. These types of properties can be found for under £250,000 across many regions of the UK, especially in northern England, Scotland, and urban areas.

For properties purchased below £250,000, home movers will enjoy paying zero stamp duty tax.

Stamp duty on over 250k next home mover property

£250,900 Property

For next home buyers, since the property priced passed the threshold of £250,000 a 5% on the portion between £250,001 applies up to £925,000. 

In result the owed tax is £45 which is an effective Tax Rate %0.02%

£300,000 Property

Now let’s look at the tax on a £300,000 house for a home mover:

Tax is applied for the £50,000 over, leaving an effective tax rate of 0.83% and owed £2,500 in stamp duty

£515,000 Property

Here is the stamp duty on a £515,000 first home is £13,250 in stamp duty (effective tax rate 2.57%)

  • £540,000 next home: £14,500 owed in stamp duty (tax rate 2.69%)
  • £575,000 next home: £16,250 owed in stamp duty (tax rate 2.83%)
  • £625,000 next home: £18,750 owed in stamp duty (tax rate 3.00%)
  • £640,000 next home: £19,500 owed in stamp duty (tax rate 3.05%)
  • £680,000 next home: £21,500 owed in stamp duty (tax rate 3.16%)
  • £720,000 next home: £25,000 owed in stamp duty (tax rate 3.33%)
  • £765,000 next home: £25,750 owed in stamp duty (tax rate 3.37%)
  • £830,000 next home: £29,000 owed in stamp duty (tax rate 3.49%)
  • £853,000 next home: £30,150 owed in stamp duty (tax rate 3.53%)
  • £880,000 next home: £31,500 owed in stamp duty (tax rate 3.58%)
  • £920,000 next home: £33,500 owed in stamp duty (tax rate 3.64%)
  • £925,000 next home: £33,750 owed in stamp duty (tax rate 3.65%)
  • £940,000 next home: £36,250 owed in stamp duty (tax rate 3.75%)
  • £975,000 next home: £38,750 owed in stamp duty (tax rate 3.97%)
  • £1,050,000 next home: £46,250 owed in stamp duty (tax rate 4.40%)
  • £1,175,000 next home: £58,250 owed in stamp duty (tax rate 5.00%)
  • £1,250,000 next home: £66,250 owed in stamp duty (tax rate 5.30%)
  • £1,370,000 next home: £78,250 owed in stamp duty (tax rate 5.71%)
  • £1,430,000 next home: £84,250 owed in stamp duty (tax rate 5.89%)
  • £1,490,000 next home: £90,250 owed in stamp duty (tax rate 6.06%)
  • £1,550,000 next home: £97,250 owed in stamp duty (tax rate 6.27%)
  • £1,620,000 next home: £105,650 owed in stamp duty (tax rate 6.52%)
  • £1,850,000 next home: £133,250 owed in stamp duty (tax rate 7.20%)
  • £2,400,000 next home: £199,250 owed in stamp duty (tax rate 8.30%)
  • £2,700,000 next home: £235,250 owed in stamp duty (tax rate 8.71%)
  • £3,700,000 next home: £355,250 owed in stamp duty (tax rate 9.60%)

The first £250,000 remain tax free.

Stamp duty on A house for Additional Property Examples

If you are purchasing an additional property that will not be your primary residence, such as a second home or buy-to-let investment property, you pay higher stamp duty rates. Always check first with a Stamp Duty Calculator. This includes an additional 3% stamp duty surcharge on top of the standard rates.

The increased rates for additional properties are:

  • 3% on the first £250,000
  • 8% on the portion between £250,001 to £925,000
  • 13% on the portion between £925,001 to £1.5 million
  • 15% on the amount above £1.5 million

What is an Additional Property?

  • An additional property refers to any residential property that is not going to be the buyer’s primary residence.
  • This includes second homes used for vacations and weekends, rental investment properties, inherited properties, and any other living spaces that won’t be someone’s main home.

Who Buys Additional Properties and Why?

  • Second Home Buyers – People may purchase a second home as a vacation getaway or to have more space for visiting family and friends. Owning a second property provides more living flexibility.
  • Buy-to-Let Landlords – Investors often buy additional properties to rent them out to tenants. This provides rental income and potential property value appreciation as an investment.
  • Flippers – Some buyers purchase properties specifically to renovate and resell for a profit. These short-term flips are additional properties.
  • Inheritors – Someone may inherit a property from a family member that won’t become their primary residence. This makes it an additional property for stamp duty purposes.
  • Companies/Businesses – Corporations sometimes purchase residential properties to house employees or clients when needed. These are not primary homes for the company.

The main reasons are investment potential, rental income, vacation/leisure use, inherited assets, and business purposes. But the defining factor is the property not becoming the buyer’s main place of residence.

Stamp duty on over 250k for investment property / buy to let

 £275,000 Second Home Property

The stamp duty owed on a second home with purchase price of  £275,000 is £9,500 in stamp duty (effective tax rate 3.45%)

  • £307,150 second home: £12,072 owed in stamp duty (tax rate 3.93%)
  • £334,750 second home: £14,280 owed in stamp duty (tax rate 4.27%)
  • £349,150 investment property: £15,432 owed in stamp duty (tax rate 4.42%)
  • £473,000 investment property: £25,340 owed in stamp duty (tax rate 5.36%)
  • £: £31,300 owed in stamp duty (tax rate 5.72%)
  • £599,150 investment property: £35,432 owed in stamp duty (tax rate 5.91%)
  • £632,250 investment property: £38,080 owed in stamp duty (tax rate 6.02%)
  • £657,500 investment property: £40,100 owed in stamp duty (tax rate 6.10%)
  • £675,150 second home: £41,512 owed in stamp duty (tax rate 6.15%)
  • £708,750 investment airbnb property: £44,200 owed in stamp duty (tax rate 6.24%)
  • £729,250 investment airbnb property: £45,840 owed in stamp duty (tax rate 6.29%)
  • £792,750 investment airbnb property: £50,920 owed in stamp duty (tax rate 6.42%)
  • £817,500 investment bnb property: £52,900 owed in stamp duty (tax rate 6.47%)
  • £833,750 investment bnb property: £54,200 owed in stamp duty (tax rate 6.50%)
  • £844,750 investment bnb property: £55,080 owed in stamp duty (tax rate 6.52%)
  • £911,150 investment property: £60,392 owed in stamp duty (tax rate 6.63%)
  • £1,017,500 investment property: £73,525 owed in stamp duty (tax rate 7.23%)
  • £1,255,500 investment property: £104,465 owed in stamp duty (tax rate 8.32%)
  • £1,441,500 investment property: £128,645 owed in stamp duty (tax rate 8.92%)
  • £1,564,750 investment property: £145,962 owed in stamp duty (tax rate 9.33%)
  • £1,635,750 investment property: £156,612 owed in stamp duty (tax rate 9.57%)

For investment properties or additional properties, STLD is paid based on portions of the property price falling into different tax bands, not the total amount.

So for your example of buying an investment property for £40,000, the total stamp duty owed would be 3% of £40,000, which is £1,200

Key Takeaways

To understand how much tax you potentially will owe, use our Stamp Duty Calculator which is made with the stamp duty formula shared on the government website, or check 90+ detailed examples each with within their stamp duty bracket, across a wide range of property prices and buyer scenarios.

Key lessons around calculating stamp duty:

  • Stamp duty rates are tiered based on price thresholds, with higher portions of the property price being taxed at progressively higher rates. You only pay each rate on the amount within that bracket.
  • First-time buyers enjoy the most relief, with 0% tax on the first £425,000. Home movers pay no tax on the first £250,000.
  • Additional property buyers and non-residents face surcharges that can add thousands in extra tax.
  • For properties under £500,000, stamp duty is usually less than 5% of the purchase price. But it rises steeply above £1.5 million.
  • Total stamp duty on a high-end luxury home can easily exceed £200,000. Budget accordingly when buying premium properties.

Hopefully these examples provide a useful reference point as you estimate the stamp duty costs for your own property purchase. Use the rates and thresholds outlined here to calculate approximate totals based on your price range and buyer type.

The examples demonstrate how the tiered stamp duty structure allows some savings for primary residences, but results in hefty taxes on additional and high-value properties. Consult them when budgeting for your next purchase or sale.

What is the stamp duty on a house purchase for a first-time homebuyer in the UK?

The stamp duty on a house purchase for a first-time homebuyer in the UK is calculated using a tiered or banded structure, where different tax rates apply at different property price thresholds.

What is the stamp duty on an additional property?

The stamp duty on an additional property is 3% of the purchase price.

What is the stamp duty on a property that is not a home move?

If you are purchasing an additional property that will not be your primary residence, such as a second home or buy-to-let investment property, you pay higher stamp duty rates split in four bands: 0% on the first £250,000 of the property price; 5% on the portion between £250,001 to £925,000; 10% on the portion between £925,001 to £1.5 million; 12% on the amount above £1.5 million.

What is the stamp duty on a property that is inherited?

The stamp duty on an inherited property is based on the portion of the property’s price that falls within each tax bracket.

What is the stamp duty on a property that is not the buyer's primary residence?

The stamp duty on a property that is not the buyer’s primary residence is 3% on the first £250,000, 8% on the portion between £250,001 to £925,000, 13% on the portion between £925,001 to £1.5 million, and 15% on the amount above £1.5 million.