Stamp Duty for First-Time Buyers in 2026: Thresholds and How Much You Save
Quick answer
A clear 2026 guide to stamp duty for first-time buyers in England and Northern Ireland: the thresholds, eligibility rules, a worked example and the savings.
Buying your first home is a big step, and stamp duty for first-time buyers is one of the costs you need to plan for. This guide explains the 2026 thresholds for Stamp Duty Land Tax (SDLT), who qualifies for first-time buyer relief, and exactly how much you can save with a clear worked example.
What is stamp duty and where does it apply?
Stamp Duty Land Tax (SDLT) is a tax you pay when you buy a property or land over a certain price. It applies in England and Northern Ireland only. Scotland and Wales have their own separate taxes, which we cover briefly below.
SDLT is charged progressively. That means each tax rate applies only to the portion of the purchase price that falls within a particular band, rather than the whole price being taxed at a single rate. This is the same way Income Tax works, and it stops you facing a sudden jump in tax just because your price crosses a threshold.
SDLT, LBTT and LTT: the three UK property taxes explained
There is no single, UK-wide stamp duty. Which tax you pay when you buy a home depends entirely on where the property is located, not where you live or where your solicitor is based. The three taxes are run by different authorities and have their own rates, thresholds and reliefs, so the bill on an identical price can differ across the nations.
- SDLT - Stamp Duty Land Tax (England & Northern Ireland). Collected by HMRC. This is the tax described throughout this guide, with first-time buyer relief raising the nil-rate band to £300,000 on qualifying purchases up to £500,000. Estimate it with our stamp duty calculator or, if you qualify for relief, the first-time buyer stamp duty calculator.
- LBTT - Land and Buildings Transaction Tax (Scotland). Collected by Revenue Scotland. It replaced SDLT in Scotland and has its own bands and thresholds, plus a first-time buyer relief that raises the nil-rate band to £175,000. Work out a Scottish purchase with our LBTT calculator.
- LTT - Land Transaction Tax (Wales). Collected by the Welsh Revenue Authority. It replaced SDLT in Wales and has its own bands and thresholds. Importantly, Wales has no first-time buyer relief, so first-time buyers are taxed the same way as other buyers. Use our LTT calculator for a Welsh property.
The key practical point is that the rates and the price at which tax starts are different in each nation, so you cannot assume the English figures apply if you are buying in Scotland or Wales. Always use the calculator that matches the property's location.
First-time buyer relief: the 2026 thresholds
If you are a first-time buyer and the purchase price is £500,000 or less, you qualify for first-time buyer relief. This gives you a more generous tax-free amount than standard buyers receive.
| Portion of purchase price | First-time buyer rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
In other words, you pay nothing on the first £300,000 of the price, and 5% on anything between £300,001 and £500,000.
Tip: If your purchase price is more than £500,000, first-time buyer relief does not apply at all. You will pay the standard SDLT rates on the whole price, so it can be worth knowing where you sit relative to that £500,000 cliff edge before you make an offer.
The standard rates (for comparison)
To see how much relief is worth, it helps to know the standard SDLT rates that apply when you do not qualify for first-time buyer relief.
| Portion of purchase price | Standard rate |
|---|---|
| Up to £125,000 | 0% |
| £125,001 to £250,000 | 2% |
| £250,001 to £925,000 | 5% |
| £925,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
The key difference for first-time buyers is the much larger 0% band: £300,000 instead of £125,000. You can compare both outcomes side by side using our first-time buyer stamp duty calculator.
Who counts as a first-time buyer?
The rules are stricter than many people expect. To qualify for first-time buyer relief, all of the following must be true:
- You have never owned a property anywhere in the world, including inherited or jointly owned property.
- If you are buying with someone else, they must also never have owned a property anywhere in the world.
- You intend to live in the property as your main home, rather than as a buy-to-let or second home.
- The purchase price is £500,000 or less.
Because the rule covers everyone named on the purchase, a couple buying together will not qualify if one of them has previously owned a home. The same applies to property owned overseas. It does not matter whether that previous home was bought, gifted or inherited, and it does not matter whether it has since been sold. What counts is whether you have ever held an interest in a residential property, so it is worth checking your history carefully before assuming you qualify.
Worked example: how much you save
Imagine you are a first-time buyer purchasing a home for £350,000. Because the price is under £500,000, you qualify for relief.
- 0% on the first £300,000 = £0
- 5% on the next £50,000 (the portion from £300,001 to £350,000) = £2,500
Your total stamp duty is £2,500. A buyer who does not qualify for first-time buyer relief would pay more on the same property, because their 0% band only runs up to £125,000 rather than £300,000. To run your own figures, try our stamp duty calculator.
It is worth seeing what happens close to the £500,000 limit, because that is where the relief is most valuable. A first-time buyer paying exactly £500,000 pays 0% on the first £300,000 and 5% on the next £200,000, which is £10,000. The moment the price rises above £500,000, however, relief disappears entirely and the standard rates apply to the whole purchase. This creates a genuine cliff edge, so if you are negotiating around that figure, a small reduction in the agreed price can sometimes save you a far larger amount in tax.
When and how do you pay?
Stamp duty is not paid up front when you make an offer. It becomes due after completion, when the property legally becomes yours. You must file an SDLT return and pay any tax owed within 14 days of completion. If you also have other tax filing to plan for, our Self Assessment deadlines guide sets out the dates and penalties to watch.
In practice, your solicitor or conveyancer usually handles this for you. They will calculate the amount, collect it from you as part of the final completion funds, submit the return to HMRC and pay the tax on your behalf. Even so, it is your legal responsibility to make sure the return is filed and the tax is paid on time, so it is sensible to confirm the figure and check that first-time buyer relief has been claimed where you qualify.
Because stamp duty cannot usually be added to your mortgage, you generally need the money available in cash alongside your deposit and other costs. Building the figure into your budget early helps avoid a surprise shortfall at completion.
What about Scotland and Wales?
Official sources: Scotland charges Land and Buildings Transaction Tax instead of SDLT - see Revenue Scotland (LBTT). Wales charges Land Transaction Tax - see GOV.WALES (LTT).
SDLT does not apply across the whole of the UK. If you are buying in Scotland or Wales, different rules and taxes apply.
In Scotland, you pay Land and Buildings Transaction Tax (LBTT) rather than SDLT. First-time buyers in Scotland get relief that raises the nil-rate band to £175,000. You can estimate your bill with the LBTT Calculator.
In Wales, you pay Land Transaction Tax (LTT). Importantly, LTT has no specific first-time buyer relief, so first-time buyers in Wales are taxed in the same way as other buyers. Our LTT Calculator shows what you would owe.
Frequently asked questions
Do first-time buyers always pay no stamp duty?
No. First-time buyer relief only removes stamp duty on the first £300,000 of the price. Above that, you pay 5% on the portion up to £500,000. If the price is over £500,000, you get no relief at all.
What happens if my home costs exactly £500,000?
A price of exactly £500,000 still qualifies for relief. You would pay 0% on the first £300,000 and 5% on the remaining £200,000, giving a total of £10,000.
Does owning a property abroad stop me qualifying?
Yes. To be a first-time buyer you must never have owned a property anywhere in the world. Property owned overseas, or inherited property, counts and means you do not qualify. If you later sell an inherited home, you may also need to consider Capital Gains Tax.
What if I buy with someone who already owns a home?
If anyone you buy with has previously owned a property, the relief is lost for the whole purchase. Every person named on the purchase must be a first-time buyer.
Can I get first-time buyer relief on a buy-to-let?
No. You must intend to live in the property as your main home. A buy-to-let or second property does not qualify for first-time buyer relief. If you are buying an additional property, the Second Home Stamp Duty Calculator handles the higher rates, and landlords can read our Section 24 guide on mortgage-interest relief.
Do the same rules apply in Scotland and Wales?
No. Scotland uses LBTT, where first-time buyer relief raises the nil-rate band to £175,000. Wales uses LTT, which has no first-time buyer relief. The SDLT thresholds in this guide apply to England and Northern Ireland only.
What is the difference between SDLT, LBTT and LTT in the UK?
They are three separate property purchase taxes for different parts of the UK. SDLT (Stamp Duty Land Tax) applies in England and Northern Ireland and is collected by HMRC. LBTT (Land and Buildings Transaction Tax) applies in Scotland and is collected by Revenue Scotland. LTT (Land Transaction Tax) applies in Wales and is collected by the Welsh Revenue Authority. Each has its own rates, thresholds and reliefs, so the tax on the same price can differ depending on where the property is. Use the Stamp Duty Calculator for England and NI, the LBTT Calculator for Scotland, or the LTT Calculator for Wales.
How does a UK stamp duty calculator handle LBTT in Scotland and LTT in Wales?
Because the three nations use different taxes, you select the nation or property location first. Our LBTT Calculator applies the Scottish bands and Scottish first-time buyer relief, while the LTT Calculator applies the Welsh bands (with no first-time buyer relief). For England and Northern Ireland, the Stamp Duty Calculator applies the SDLT bands set out in this guide.
How much stamp duty will I pay on a £300,000 house in England?
It depends on whether you are a first-time buyer. As a qualifying first-time buyer in England, a £300,000 home falls entirely within the 0% band, so the stamp duty is £0. A buyer who is not a first-time buyer pays the standard rates instead - 0% up to £125,000, 2% from £125,001 to £250,000 and 5% from £250,001 to £300,000 - which comes to more. Check the exact figure for your situation with our Stamp Duty Calculator or the First-Time Buyer Stamp Duty Calculator.
This guide is general information, not personal tax advice. Stamp Duty rules differ in Scotland and Wales. Check your own circumstances at gov.uk.
First-time buyer stamp duty: your questions answered
How do I use a stamp duty calculator as a first-time buyer?
Enter the property price, select your nation, and choose "first-time buyer" as your buyer type. Our First-Time Buyer Stamp Duty Calculator then applies first-time buyer relief automatically and shows your stamp duty, band by band, in seconds.
What is the stamp duty threshold for first-time buyers in England?
First-time buyers in England (and Northern Ireland) pay no Stamp Duty Land Tax on the first £300,000 of a qualifying property. The portion between £300,001 and £500,000 is taxed at 5%.
Do first-time buyers pay stamp duty above a certain price?
Yes. First-time buyer relief only applies to properties costing £500,000 or less. If the price is above £500,000 you get no first-time buyer relief at all and pay the standard rates on the whole purchase, just like any other buyer.
How does first-time buyer relief work for shared ownership?
First-time buyers purchasing a shared-ownership home can claim relief, and you can usually choose to pay stamp duty either on the share you're buying (and the rent) or on the full market value of the property. Which is better depends on the price and your share - it's worth running both and, for higher values, taking advice.
What is the difference in stamp duty between a first-time buyer and a home mover on the same property?
On a property up to £500,000, a first-time buyer pays less because of the higher £300,000 nil-rate band, while a home mover starts paying at the standard threshold. On the same £450,000 home, that relief can save a first-time buyer thousands. Compare the two instantly with our first-time buyer calculator and the standard Stamp Duty Calculator. Buying in Scotland or Wales? Use the LBTT Calculator or LTT Calculator instead.
Related calculators
- Stamp Duty Calculator
- First-Time Buyer Stamp Duty Calculator
- Second Home Stamp Duty Calculator
- Rental Income Tax Calculator
Don't forget the legal side - our guide to conveyancing explains the process and typical costs.
Written by
Laura Michelle Davis — Chartered Tax Adviser (CTA)
ACCA · CTA (Chartered Tax Adviser) · ATT · BSc Economics, UC Berkeley
Laura Michelle Davis is a Chartered Tax Adviser (CTA) who also holds the ACCA and ATT qualifications and a BSc in Economics from UC Berkeley. She specialises in UK personal tax, covering income tax, National Insurance, self-employment and capital gains, and has built her career making complicated rules easy to follow. At TaxFly, Laura writes and edits the tax guides and explainers, checking that figures reflect current HMRC rates and that every explanation answers the question a real person is actually asking. Her goal is plain-English clarity you can trust and act on.
