Stamp duty at every price: £250k to £1m, with first-time buyer rates
The short answer: stamp duty on a £400,000 home is £10,000 for someone buying their only home, or £5,000 for a first-time buyer. You pay it in slices, so only the part of the price in each band is taxed at that band’s rate. The table below covers every price from £250,000 to £1,000,000, with the first-time buyer figure alongside.
How the slices work
These are the standard residential rates for England and Northern Ireland:
| Part of the price | Rate |
|---|---|
| Up to £125,000 | 0% |
| £125,000 to £250,000 | 2% |
| £250,000 to £925,000 | 5% |
| £925,000 to £1,500,000 | 10% |
| Over £1,500,000 | 12% |
A £400,000 house, slice by slice
| Slice | Amount in the slice | Rate | Tax |
|---|---|---|---|
| £0 to £125,000 | £125,000 | 0% | £0 |
| £125,000 to £250,000 | £125,000 | 2% | £2,500 |
| £250,000 to £400,000 | £150,000 | 5% | £7,500 |
| Total | £10,000 |
That’s an effective rate of 2.5% of the price, much lower than the 5% band the top of the price sits in.
Every price from £250,000 to £1,000,000
| Price | Only home | First-time buyer | Effective rate |
|---|---|---|---|
| £250,000 | £2,500 | £0 | 1% |
| £300,000 | £5,000 | £0 | 1.7% |
| £350,000 | £7,500 | £2,500 | 2.1% |
| £400,000 | £10,000 | £5,000 | 2.5% |
| £450,000 | £12,500 | £7,500 | 2.8% |
| £500,000 | £15,000 | £10,000 | 3% |
| £550,000 | £17,500 | No relief | 3.2% |
| £600,000 | £20,000 | No relief | 3.3% |
| £650,000 | £22,500 | No relief | 3.5% |
| £700,000 | £25,000 | No relief | 3.6% |
| £750,000 | £27,500 | No relief | 3.7% |
| £800,000 | £30,000 | No relief | 3.8% |
| £850,000 | £32,500 | No relief | 3.8% |
| £900,000 | £35,000 | No relief | 3.9% |
| £950,000 | £38,750 | No relief | 4.1% |
| £1,000,000 | £43,750 | No relief | 4.4% |
Where the cliffs and steps are
- £125,000: below this nothing is payable, for most buyers. Above it, 2% applies to the slice up to £250,000.
- £250,000: the marginal rate jumps from 2% to 5%. Every extra £10,000 of price above it costs £500.
- £300,000: first-time buyers start paying 5% on the part above this.
- £500,000: a real cliff for first-time buyers. At £500,000 their bill is £10,000. At £500,001 the relief disappears and the normal rates apply, which is £15,000: a jump of about £5,000 for one extra pound.
- £925,000: the marginal rate rises from 5% to 10% on the slice above.
- £1,500,000: 12% applies to the part above this.
If you’re negotiating, these are the prices that matter. A first-time buyer who can agree £500,000 instead of £505,000 saves about £5,250, far more than the price difference itself.
Paying and budgeting
Stamp duty is due within 14 days of completion. Your solicitor normally files the return and pays it out of the money you send, so it’s part of the cash you need on top of your deposit. If you already own a home, the bill will be higher: see stamp duty on a second home or buy-to-let. To see how much you can borrow once the costs are included, try the mortgage affordability calculator.
What a flat costs
Stamp duty is the same for a flat as for a house. It is charged on the price, not the type of property. A £400,000 flat costs the same as a £400,000 house. Leasehold properties are charged on the purchase price, not on the ground rent or the length of the lease, unless the rent is very high.
The same £400,000 in Scotland and Wales
Stamp duty only exists in England and Northern Ireland. Scotland and Wales have their own taxes with their own bands:
- England and Northern Ireland (SDLT): £10,000 for a standard buyer, £5,000 for a first-time buyer.
- Scotland (LBTT): £13,350 for a standard buyer, with the first £145,000 at 0%.
- Wales (LTT): £10,500 for a standard buyer, with the first £225,000 at 0% and no first-time buyer relief.
So at this price England is the cheapest for most buyers, and Scotland the most expensive. For a second home the picture changes: in Scotland an extra 8% of the whole price is added, so a £400,000 second home costs £45,350 there against £30,000 in England. See stamp duty on a second home.
Why the answer changes with the date
The nil-rate band in England rose and fell several times in recent years, which is why older articles and calculators give different numbers for the same price. The figures in this guide use the rates in force now. If the table you are using shows a nil-rate band of £250,000 or £300,000 it is out of date.
This is general information, not tax advice. Rates are for England and Northern Ireland. Scotland and Wales have their own taxes.
Common questions
How much is stamp duty on a £400,000 house?
For someone buying their only home, stamp duty on £400,000 is £10,000. A first-time buyer pays £5,000. Buying a second home or buy-to-let costs £30,000.
How is stamp duty calculated?
In slices, like income tax. Each part of the price is taxed at the rate for its band, and you add the slices together. You do not pay the top rate on the whole price.
What is the first-time buyer rate?
First-time buyers pay nothing on the first £300,000 and 5% on the part between £300,000 and £500,000. If the price is over £500,000 the relief is lost entirely and the normal rates apply.
Does stamp duty apply in Scotland or Wales?
No. These figures are for England and Northern Ireland. Scotland uses Land and Buildings Transaction Tax and Wales uses Land Transaction Tax, with different rates.
Can I add stamp duty to my mortgage?
Not as a rule. Stamp duty is paid within 14 days of completion, normally through your solicitor, so you need the cash on top of your deposit.