Stamp duty for first-time buyers: 2026 rates and calculator

How much stamp duty does a first-time buyer pay?

First-time buyer stamp duty in England or Northern Ireland is £0 on a home costing up to £300,000, 5% on the part between £300,001 and £500,000, and the standard rates on the whole price once it passes £500,000 (GOV.UK). The calculator above applies those rules to any price and shows what a mover would pay on the same home, so you can see the saving.

Stamp duty’s full name is Stamp Duty Land Tax, or SDLT. It is a tax you pay to HMRC when you buy a home in England or Northern Ireland, worked out in slices of the price like income tax bands. Scotland and Wales have replaced it with their own taxes, covered at the end of this page.

What are the standard stamp duty bands?

Everyone who is not a first-time buyer pays these rates on a home they will live in, as of 27 September 2026 (GOV.UK):

The rates apply slice by slice. A mover paying £300,000 pays nothing on the first £125,000, 2% on the next £125,000 (£2,500) and 5% on the last £50,000 (£2,500): £5,000 in total. Buyers of second homes pay a surcharge on top, and non-UK residents pay another 2%, but neither applies to a first home you live in.

What is first-time buyer relief?

First-time buyer relief is the rule that replaces the standard bands with two simpler ones: 0% on the first £300,000 and 5% on the remainder up to £500,000 (GOV.UK). The relief was introduced in November 2017; the current thresholds have applied since 1 April 2025, when HMRC’s manual says “first-time buyers purchasing their first home for £300,000 or less will pay no SDLT” (HMRC manual SDLTM29805).

Three conditions must all be met. Everyone buying must be a first-time buyer. You must intend to occupy the home as your only or main residence, so a buy-to-let does not qualify. And the price must be no more than £500,000; if it is more, “you cannot claim the relief and you must pay the standard rates on the total purchase price” (GOV.UK). There is no tapering. At £500,000 a first-time buyer pays £10,000; at £500,001 they pay £15,000.

Your solicitor claims the relief on the stamp duty return. There is no separate form, but you will be asked to confirm in writing that you qualify, and HMRC can ask for the tax back later if you did not.

Who counts as a first-time buyer for stamp duty?

HMRC’s definition is strict: a purchaser “must not, either alone or with others, have previously acquired a major interest in a dwelling or an equivalent interest in land situated anywhere in the world”, and that includes interests acquired by “inheritance or gift” (HMRC manual SDLTM29845). A major interest means owning the freehold or a lease of the property, outright or as a share.

So you do not count if you once owned half a flat with an ex, inherited a share of a parent’s house, or owned a home in another country, even if you never lived in it. You do still count if you have only ever rented, or if your name was on a tenancy but never on a title. Other schemes define first-time buyer slightly differently; the eligibility page compares the definitions.

Three worked examples

All three buyers are first-time buyers living in England, buying a home to live in, on 27 September 2026.

The saving is worth up to £5,000 and is the same at every price from £300,000 to £500,000, because both the first-time buyer and the mover pay 5% on each pound above £300,000. Type your own price into the calculator above to see the two figures side by side.

Do all buyers have to be first-time buyers?

Yes. GOV.UK puts it in one line: you are eligible “if you and anyone else you’re buying with are first-time buyers” (GOV.UK). HMRC’s manual adds that “if the property is purchased jointly, all the purchasers must meet these conditions”, and the relief also requires the buyers to intend to live in the home as their only or main residence (HMRC manual SDLTM29845).

One previous owner among two buyers means no relief for either: on a £350,000 home the bill goes from £2,500 to £7,500. The joint mortgage guide covers what that means for couples where one partner has owned before.

How does stamp duty work on Shared Ownership?

You choose between paying on the whole home up front or paying in stages, and first-time buyer relief is available either way. With a “market value election” you pay stamp duty once, on the full market value stated in the lease, as if you had bought the whole home; after that “you won’t pay any more on the property sale”, even when you buy further shares (GOV.UK). Paying in stages means paying only on the share you buy at first, with nothing more due until your ownership passes 80%.

First-time buyers can claim relief on a Shared Ownership home whose market value is £500,000 or less: GOV.UK says you can claim it “if you make a market value election, or if you choose to pay Stamp Duty Land Tax in stages when the lease is given”, and the relief also covers the rent, so no tax is due on that (GOV.UK). Which option is cheaper depends on the value and on whether you expect to buy more shares; the Shared Ownership stamp duty page works through both.

When is stamp duty paid, and by whom?

The buyer pays, within 14 days of completion. You must send a return to HMRC and pay the tax “within 14 days of completion”, and in practice your solicitor or conveyancer files the return and pays it for you on completion day, taking the money from you in advance with the rest of the completion funds (GOV.UK). A return is normally filed even when the answer is £0, so that the relief is recorded.

That means the stamp duty has to be cash in your solicitor’s account before completion, on top of the deposit and the fees listed on the costs page. It is paid within 14 days in cash, not added to a mortgage later.

Is stamp duty different in Scotland and Wales?

Yes, in both name and numbers. Stamp Duty Land Tax applies only in England and Northern Ireland (GOV.UK).

• Scotland charges Land and Buildings Transaction Tax. Nothing is due up to £145,000, then 2% to £250,000, 5% to £325,000, 10% to £750,000 and 12% above that. First-time buyer relief raises the nil-rate band to £175,000, “a reduction in tax of up to £600” (Revenue Scotland).
• Wales charges Land Transaction Tax. Nothing is due up to £225,000, then 6% to £400,000, 7.5% to £750,000, 10% to £1.5 million and 12% above (Welsh Government). “There’s no first-time buyers’ relief in Wales”, and the return and payment are due within 30 days (Welsh Government).

This site covers England, because Your First Home is an England-only scheme (GOV.UK). Nothing in the announcement changes the stamp duty rules for scheme buyers: you pay on the price of the home, and the calculator above applies.

What to do next

• Put your price into the calculator above; if it is over £300,000, add the result to your costs budget.
• If you are buying with someone else, confirm that both of you meet HMRC’s definition, and read the joint mortgage guide if one of you has owned before.
• For Shared Ownership, read the stamp duty on Shared Ownership page before choosing between paying up front and paying in stages.
• Check Your First Home eligibility once the Budget on 28 October 2026 sets the price caps, which decide whether scheme homes fall under the £500,000 relief limit.