How much stamp duty tax will you pay when buying a home?

If you’re thinking of moving home, one of the costs to consider is stamp duty. This tax is payable to the government when you complete your home purchase.

In September, some cuts were made to how much stamp duty home-buyers will pay in England and Northern Ireland. And in October, changes were made to the amount you’ll pay if you’re buying a home in Wales.

The amount of stamp duty you might pay varies, depending on where you live, and if you’re a first-time buyer. In England or Northern Ireland, you won’t have to pay any stamp duty if you’re buying a first home priced up to £425,000. If you’ve owned a home in the past, you’ll pay stamp duty on the portion over £250,000.

The percentage of stamp duty you’ll pay is also based on the price bracket your home falls into. You can read more about stamp duty thresholds here. And if you know the cost of the home you’re buying, you can work out exactly how much stamp duty you’ll pay using our stamp duty calculator.

In Wales, buyers pay Land Transaction Tax (LTT), and first-time buyers pay the same amount as other home-buyers. No LTT is payable on homes priced up to £225,000. You can read more about Wales’ LTT rates here.

Land and Buildings Transaction Tax (LBTT) is payable in Scotland. Homes priced up to £145,000 are exempt from LBTT. If you’re a first-time buyer, you can apply for first-time buyer relief, and won’t pay LBTT on a home costing less than £175,000. This could reduce your LBTT payment by up to £600.

How does stamp duty work out by location and property price?

Here’s some examples of how the rates will be applied to homes for sale right now.

A 2-bed terrace house in Devon, England

Asking price: £250,000
Stamp duty rate: 0%
All home-buyers would pay: No stamp duty tax

A 5-bed house in Tyne & Wear, England

Asking price: £450,000
First-time buyer would pay: £1,250 stamp duty (5% on the portion over £425,000)
Non first-time buyer would pay: £10,000 stamp duty (5% on the portion over £250,000)

A 4-bed house on the Scottish Borders

Asking price: £240,000
LBTT rate: 2% on the portion over £145,000
First-time buyer would pay: £1,750 LBTT (includes first-time buyer relief)
Non first-time buyer would pay: £2,350 LBTT

A 3-bed house in Hertfordshire, England

Asking price: £600,000
First-time buyer would pay: £8,750 stamp duty (5% on portion over £425,000)
Non first-time buyer would pay: £17,500 stamp duty (5% on portion over £250,000)

A 4-bed house in Buckinghamshire, England

Asking price: £1,125,000
Stamp duty rate:
No stamp duty payable on the portion priced up to £250,000
5% on the portion above £250,000 and up to £925,000: £33,750
10% on the portion above £925,000: £20,000
A home-buyer would pay: £53,750 stamp duty

A 4-bed house in Carmarthenshire, Wales

Asking price: £350,000
Land Transaction Tax rate: 6% on portion over £225,001
Home-buyer would pay: £7,500 LTT

Got a budget in mind? Use our SDLT calculator to check your stamp duty payment

The header image for this article was provided courtesy of Binks Estate Agents, covering Chilterns.

READ MORE: A first-time buyers’ guide to mortgage terms