Stamp Duty Land Tax Calculator UK

Created by Wei Bin Loo
Reviewed by Tibor Pál, PhD candidate and Adena Benn
Last updated: Jan 15, 2023

With this Stamp Duty Land Tax calculator, we aim to help you calculate the amount of stamp duty taxes you have to pay when you buy a property in the UK. This calculator will help you calculate your rent or buy decision.

On 22 September 2022, the UK government has announced the change in the Stamp Duty and Land Tax (SDLT), or simply the stamp duty tax. From 23 September 2022 onwards, the government will increase the threshold of the lowest tax bracket, which lower down the overall taxes you need to pay when buying a property. To understand more on how tax bracket words, check out our tax bracket calculator.

Specifically, the changes include:

  • Increasing the threshold of the 0% SDLT bracket from £125,000 to £250,000
  • For first time buyer, the 0% bracket threshold increase from £300,000 to £425,000.
  • Also, instead of a maximum purchase price of £500,000, first-time buyers will be able to enjoy a lower stamp duty tax rate up to a purchase price of £625,000.

We have written this article to help you understand:

  • What is stamp duty in the UK;
  • How much stamp duty in the UK is; and
  • How to calculate the stamp duty for the UK.

We will also demonstrate some calculation examples to help you understand the process used in the calculations.

What is Stamp Duty Land Tax (SDLT)?

The Stamp Duty Land Tax (SDLT), or stamp duty, is the tax that you have to pay when you buy a property in England and Northern Ireland. In Scotland, the same kind of tax is called the Land and Buildings Transaction Tax (LBTT). And for Wales, it is called the Land Transaction Tax (LTT).

How to use our Stamp Duty Land Tax calculator?

Our Stamp Duty Land Tax calculator is straightforward and very easy to use. By following the four steps below, you will be able to calculate the stamp duty you need to pay for your property purchase:

  1. Identify the buyer type:

    Firstly, you will identify whether you are one of the following:

    • First-time buyer
    • Moving home
    • Buying an additional property
    • Buying the property to let or flip

    Different buyer types will have different stamp duty rates and stamp duty thresholds.

  2. Choose your residency:

    Next, you need to identify yourself as either a UK resident or a Non-UK resident. Non-UK residents are required to pay more stamp duty.

  3. Determine your property price:

    Then, you will need to know the price of the property you plan to purchase.

  4. Understand your stamp duty

    Well, you should now be able to see how much stamp duty you need to pay for your property purchase. Stamp duty tends to be one of the highest costs when buying a property, so make sure you check it thoroughly before deciding.

How does the stamp duty calculation work?

The Stamp Duty Land Tax calculation is not too complicated, but it is not overly simple either. Before we dive any deeper, let's look at the following table and understand the standard stamp duty thresholds and stamp duty rates:

Property Price

Stamp duty rate

Up to £250,000

0%

£250,001 – £925,000

5%

£925,000 – £1.5 million

10%

Over £1.5 million

12%

The stamp duty calculation follows the principles below:

  • If you are a non-UK resident, all your standard stamp duty rates will increase by 2%. For instance, instead of paying 5% from £250,001 to £925,000, you will need to pay the stamp duty at 7%.

  • If you are buying an additional property, either to live in, to rent out, or to flip, you will need to pay 3% more. For example, you will need to pay at the stamp duty rate of 8% for property valued from £250,001 to £925,000.

  • And, if you are both non-UK resident and are buying additional properties, you will need to pay 2% + 3% = 5% more than the standard rate. Additionally, for a property valued above £250,000, you will need to pay 10%.

  • However, there is one exception -- the first-time buyer stamp duty. If you are a first-time buyer buying a property below £625,000, you don't need to pay any stamp duty for the first £425,000 and 5% for the rest. For instance, if you buy a property for £450,000, you will only need to pay £25,000 * 5% = £1,250 for the first-time buyer stamp duty.

FAQ

What is buy-to-let stamp duty?

Buy-to-let stamp duty is the stamp duty you have to pay when investing in a property and planning to rent it out to other people. The stamp duty rates for buy-to-let properties are higher than the standard stamp duty rates.

Is the stamp duty in Scotland and Wales the same as the rest of the UK?

The stamp duty only applies to England and Northern Ireland. For stamp duty in Scotland, it is called the Land and Buildings Transaction Tax (LBTT). And for Wales, it is called the Land Transaction Tax (LTT).

Can the stamp duty be negative?

No, the capital gains tax cannot be negative as this means that the government will be paying you money.

What is the stamp duty holiday?

Stamp duty holiday is a policy introduced during the pandemic to combat low economic activities. It allows people in England and Northern Ireland to purchase property without paying any stamp duty on properties up to £500,000. This scheme was effective until 30th June 2021.

What factors affect your stamp duty?

The amount of stamp duty that you have to pay is based on the following factors:

  • Buying intentions, buy-to-let buyers need to pay higher stamp duty;
  • Investor type, resident outside of the UK, needs to pay higher stamp duty; and
  • Property price: The higher the property price, the higher the stamp duty applied.

What is the Stamp Duty Land Tax (SDLT) if I buy a property of £490,000 as a first time buyer?

The Stamp Duty Land Tax (SDLT) for buying a property of $490,000 as a first-time buyer is £9,500.

How do I calculate the Stamp Duty Land Tax (SDLT) for my property purchase?

You can calculate your SDLT in three easy steps:

  1. Identify if you are a first-time buyer.
  2. Identify if you are a UK resident.
  3. Input your property price to our SDLT calculator.
Wei Bin Loo
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A first-time buyer
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UK resident
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Stamp duty
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