Stamp Duty Thresholds Explained: UK Rates and Reliefs 2026
A stamp duty threshold is the price point at which a rate of tax begins to apply. Knowing what the thresholds are, and what they mean in practice, tells you whether you will pay anything at all, which rates apply to your purchase, and exactly how much of the purchase price is taxed at each level.
The UK has three separate property purchase tax systems, each with its own set of thresholds. They differ by region, by buyer type, and in some cases by the type of property being bought. This article sets out every threshold that applies to residential purchases in 2026, explains what each one means in plain terms, and covers how thresholds have changed in recent years.
To see the figures for a specific purchase, use the stamp duty calculator for an instant breakdown across all buyer types.
What a Threshold Actually Means
The word "threshold" gets used loosely, so it is worth being precise. In the context of stamp duty, a threshold is the price at which a band ends and the next one begins. The most commonly discussed is the nil-rate threshold, which is the price below which no tax is payable at all.
Thresholds do not define how much tax you pay on the whole purchase. They define which slice of the price is taxed at which rate. If the nil-rate threshold is £125,000 and you buy a property for £300,000, you do not owe nothing because you have exceeded it, nor do you suddenly owe 5% on everything. You owe nothing on the first £125,000, then the relevant rates apply only to the portions above each threshold in turn.
This is the banded or marginal system, and it has applied to UK residential property purchases since 2014 when the old slab system, where a single rate applied to the whole price, was replaced. Understanding it prevents the most common calculation error, which is multiplying the headline rate by the full purchase price.
The Nil-Rate Threshold: When You Pay Nothing
Every UK property purchase tax has a nil-rate threshold. Property bought at or below this threshold attracts no tax at all. Property bought above it is taxed only on the portion that exceeds it, with the first slice remaining tax-free.
The nil-rate thresholds in force in 2026 are:
| Region | Tax | Standard nil-rate threshold | First-time buyer nil-rate threshold |
|---|---|---|---|
| England and Northern Ireland | SDLT | £125,000 | £300,000 |
| Scotland | LBTT | £145,000 | £175,000 |
| Wales | LTT | £225,000 | £225,000 (no separate relief) |
Wales has the highest nil-rate threshold in the UK. A buyer in Wales pays no LTT on any purchase up to £225,000, without needing to qualify for any relief. Scotland's threshold of £145,000 is higher than England's £125,000. England's threshold is the lowest of the three, though the first-time buyer relief raises it considerably for eligible buyers.
SDLT Thresholds in England and Northern Ireland (2026)
Stamp Duty Land Tax is administered by HMRC. The thresholds in force from 1 April 2025, and unchanged throughout 2026, are set out below by buyer type.
Standard buyer thresholds
Standard rates apply when you are buying a property as your main or only residence and you do not currently own another home. They also apply if you are replacing a main residence and have already sold or are simultaneously selling your previous property.
| Threshold | What it means | Rate above this threshold |
|---|---|---|
| Up to £125,000 | No SDLT payable | 0% |
| £125,001 | Tax starts at 2% | 2% (on the portion between £125,001 and £250,000) |
| £250,001 | Rate increases to 5% | 5% (on the portion between £250,001 and £925,000) |
| £925,001 | Rate increases to 10% | 10% (on the portion between £925,001 and £1,500,000) |
| £1,500,001 | Rate increases to 12% | 12% (on everything above £1,500,000) |
Source: HMRC, residential property rates. Effective 1 April 2025.
A practical way to read this: on a £250,000 purchase you pay SDLT on £125,000 of it (the slice between £125,000 and £250,000), and nothing on the first £125,000. The tax is £2,500. On a £251,000 purchase, you pay the same £2,500 on the first portion, and then 5% on the £1,000 above £250,000, which adds £50. The total is £2,550, not 5% of £251,000.
First-time buyer thresholds
First-time buyers in England and Northern Ireland benefit from a raised nil-rate threshold. The relief works by replacing the standard thresholds with a different set, provided the purchase price does not exceed £500,000.
| Threshold | What it means | Rate |
|---|---|---|
| Up to £300,000 | No SDLT payable for eligible first-time buyers | 0% |
| £300,001 to £500,000 | Tax applies on the portion above £300,000 | 5% |
| Over £500,000 | Relief withdrawn entirely. Standard thresholds apply from £0 | Standard rates |
Source: HMRC. Effective 1 April 2025.
The £500,000 cap is a cliff edge. A first-time buyer purchasing at £499,000 pays 5% on £199,000 (the slice between £300,000 and £499,000), which is £9,950. A first-time buyer purchasing at £501,000 pays standard rates on the full price, which works out at £15,050. The difference is over £5,000 for a purchase price that is only £2,000 higher. If you are a first-time buyer looking at properties close to £500,000, it is worth running both scenarios through the England and Northern Ireland SDLT calculator before making an offer.
To qualify for the first-time buyer threshold, every buyer named on the purchase must be a first-time buyer. Someone who has previously owned a residential property anywhere in the world, including inherited property even if sold immediately, disqualifies the entire transaction.
Additional property thresholds
Buyers who will own more than one residential property after completion pay a surcharge on top of standard rates. The key threshold for additional property is £40,000. Purchases below this figure are exempt from the surcharge. The surcharge of 5 percentage points applies to all residential purchases at £40,000 and above, affecting every SDLT band including the nil-rate band.
This means an additional property buyer pays 5% on the portion up to £125,000, 7% on the portion between £125,001 and £250,000, and so on up the bands. There is no slice of the price that attracts 0% for this buyer type.
The surcharge was raised from 3 percentage points to 5 percentage points on 31 October 2024. Contracts exchanged before that date but completing after it were subject to transitional rules set by HMRC.
The non-residential threshold
Commercial properties and mixed-use properties (those with both residential and commercial elements) are assessed against different thresholds. The non-residential nil-rate threshold is £150,000. For buyers assessing whether a property with, say, a flat above a shop might be treated as mixed-use, this is significant: non-residential rates are generally lower and do not carry the additional dwelling surcharge.
LBTT Thresholds in Scotland (2026)
Scotland uses Land and Buildings Transaction Tax, administered by Revenue Scotland. The band structure differs from England in two important ways. First, the nil-rate threshold is higher at £145,000. Second, the 10% band begins much earlier, at £325,001 rather than £925,001 in England. This makes Scotland more expensive for buyers at mid to higher price points.
| Threshold | What it means | Rate |
|---|---|---|
| Up to £145,000 | No LBTT payable | 0% |
| £145,001 | Tax starts at 2% | 2% (on the portion up to £250,000) |
| £250,001 | Rate increases to 5% | 5% (on the portion up to £325,000) |
| £325,001 | Rate increases to 10% | 10% (on the portion up to £750,000) |
| £750,001 | Rate increases to 12% | 12% (on everything above £750,000) |
Source: Revenue Scotland, LBTT rates and bands.
First-time buyer threshold in Scotland
Scotland raises the nil-rate threshold to £175,000 for first-time buyers. Unlike England, there is no upper purchase price cap that removes the relief. If you are a first-time buyer purchasing at any price, you pay 0% on the first £175,000 and standard rates above it. The maximum saving compared to the standard threshold is £600.
Additional dwelling threshold in Scotland
The threshold for the Additional Dwelling Supplement (ADS) in Scotland matches the equivalent in England and Wales: purchases of £40,000 or more where the buyer will own multiple residential properties trigger the supplement. The ADS rate is 8% of the entire purchase price, added on top of the standard LBTT bill. It is not applied band by band but as a flat percentage of the full price.
Use the Scotland LBTT calculator to see figures with and without the ADS for any purchase price.
LTT Thresholds in Wales (2026)
Wales uses Land Transaction Tax, administered by the Welsh Revenue Authority. The standard thresholds are structured differently to both England and Scotland, with the highest nil-rate threshold at £225,000 but a relatively steep 6% rate immediately above it.
| Threshold | What it means | Rate |
|---|---|---|
| Up to £225,000 | No LTT payable | 0% |
| £225,001 | Tax starts at 6% | 6% (on the portion up to £400,000) |
| £400,001 | Rate increases to 7.5% | 7.5% (on the portion up to £750,000) |
| £750,001 | Rate increases to 10% | 10% (on the portion up to £1,500,000) |
| £1,500,001 | Rate increases to 12% | 12% (on everything above £1,500,000) |
Source: Welsh Revenue Authority, LTT rates and bands.
Wales does not have a dedicated first-time buyer relief threshold. The standard nil-rate threshold of £225,000 is the same for all buyer types on a main residence purchase.
For additional properties, Wales uses a separate higher residential rate structure rather than adding a flat surcharge to standard rates. The higher rates have their own set of thresholds, starting at 5% from £0 rather than 0% up to £225,000. The threshold for triggering the higher rates is ownership of another dwelling worth £40,000 or more, matching the equivalent thresholds in England and Scotland.
Use the Wales LTT calculator for a breakdown at any purchase price, including higher rate transactions.
How Thresholds Have Changed in Recent Years
Stamp duty thresholds in England and Northern Ireland have been adjusted several times since 2020. Understanding this history matters because guidance that has not been updated may show outdated figures.
The stamp duty holiday (July 2020 to October 2021)
In July 2020, in response to the pandemic, the government temporarily raised the SDLT nil-rate threshold to £500,000. This was gradually wound down: the threshold dropped to £250,000 in July 2021 and returned to £125,000 in October 2021.
The September 2022 mini-budget changes
In September 2022, the government announced changes to SDLT thresholds as a permanent measure, raising the nil-rate band from £125,000 to £250,000 for standard buyers. For first-time buyers, the nil-rate threshold rose from £300,000 to £425,000 and the cap on the relief rose from £500,000 to £625,000. The following government later confirmed these changes would be temporary, with the thresholds reverting in April 2025.
The April 2025 reversion
On 1 April 2025, all SDLT thresholds in England and Northern Ireland returned to their pre-September 2022 levels. The standard nil-rate threshold fell from £250,000 back to £125,000. The first-time buyer nil-rate threshold fell from £425,000 back to £300,000. The cap on first-time buyer relief fell from £625,000 back to £500,000. These are the thresholds that apply throughout 2026. No further changes have been announced.
The October 2024 surcharge change
Separately, in the Autumn Budget of October 2024, the additional dwelling surcharge in England and Northern Ireland was raised from 3 percentage points to 5 percentage points, effective 31 October 2024. This did not affect the main rate thresholds but significantly increased the cost of buying a second home or buy-to-let property.
Why the Threshold That Applies to You Matters
Getting the wrong threshold is the most common reason a buyer's initial stamp duty estimate turns out to be incorrect.
The most frequent version of this is using a threshold that was in force during the 2022 to 2025 temporary period. If you see a calculation based on a nil-rate threshold of £250,000 for standard buyers, or £425,000 for first-time buyers, that guidance has not been updated since April 2025 and the figures will be wrong for any purchase completing today.
The second common error is applying the standard buyer threshold when the additional property threshold actually applies. If you will own more than one residential property after completion, there is no nil-rate band. The surcharge applies from £40,000 and affects every pound of the purchase price, including the portion that would normally attract 0%.
The third is the first-time buyer cliff edge at £500,000 in England and Northern Ireland. The threshold looks generous up to £500,000, but above it the relief disappears entirely and standard thresholds apply from the first pound. A small increase in purchase price above £500,000 can add several thousand pounds to the bill.
Running the figures through the stamp duty calculator before you make an offer is the simplest way to avoid any of these mistakes. It applies the correct thresholds for your region and buyer type automatically.
Frequently Asked Questions
What is the stamp duty nil-rate threshold in England in 2026?
The standard nil-rate threshold for residential purchases in England and Northern Ireland is £125,000. No SDLT is payable on the portion of the purchase price up to this amount. For first-time buyers, the nil-rate threshold is £300,000, provided the purchase price does not exceed £500,000. Both thresholds have been in place since 1 April 2025.
Does crossing a higher threshold mean you pay more tax on the whole price?
No. Stamp duty uses a banded system. Each threshold is the point at which a new rate begins to apply, but only to the portion of the price above that threshold. The portions below it stay at their own rates. Crossing a threshold does not change how the rest of the purchase price is taxed.
What is the stamp duty threshold for first-time buyers in Scotland?
First-time buyers in Scotland benefit from a raised nil-rate LBTT threshold of £175,000, compared to the standard £145,000. There is no upper purchase price cap, so the relief applies regardless of how much the property costs. Above £175,000, standard LBTT rates apply. The maximum saving from the relief is £600.
Is there a stamp duty threshold in Wales for first-time buyers?
Wales does not have a dedicated first-time buyer threshold. However, the standard nil-rate LTT threshold in Wales is £225,000 for all buyers. Because this is the highest nil-rate threshold in the UK, the majority of first-time buyers in Wales pay no LTT at all without needing a specific relief scheme.
What is the threshold that triggers the additional property surcharge?
In England and Northern Ireland, the additional dwelling surcharge of 5 percentage points applies to all residential property purchases at £40,000 and above, where the buyer will own more than one residential property after completion. The same £40,000 minimum applies in Scotland for the Additional Dwelling Supplement. In Wales, the higher residential rates also apply from £40,000 for buyers owning another dwelling.
Why did the stamp duty threshold change in April 2025?
The higher thresholds that applied between September 2022 and March 2025 were always intended to be temporary. They were introduced by the then-government as a short-term measure to support the housing market, and the Autumn 2024 Budget confirmed they would expire as scheduled on 31 March 2025. From 1 April 2025, the SDLT thresholds in England and Northern Ireland returned to their pre-September 2022 levels.
Will stamp duty thresholds change in 2026?
No changes to SDLT, LBTT, or LTT thresholds have been announced for 2026. The thresholds that applied from 1 April 2025 continue to apply. Stamp duty thresholds can be changed at any Budget or fiscal event, so it is worth checking for any announcements if your completion date is some months away. The rates on this site are kept up to date when changes are confirmed.
Disclaimer: The thresholds in this article reflect official published guidance from HMRC, Revenue Scotland, and the Welsh Revenue Authority as at June 2026. They are provided for information purposes only and are not a substitute for legal or tax advice. Confirm the stamp duty payable on your specific purchase with your solicitor or licensed conveyancer before completion.
Written by Ali Walton. Last updated June 2026.
Ali Walton
Ali Walton writes clear, practical UK property tax guides for buyers, homeowners, and investors using current stamp duty, SDLT, LBTT, and LTT rules.