How much stamp duty do I pay on a £500,000 property in 2026/27?

Full answer

Stamp Duty Land Tax (SDLT) in England is calculated on a tiered basis, similar to income tax -- each band's rate applies only to the portion of the purchase price that falls within that band. **2026/27 SDLT Rates -- Standard Residential** | Band | Rate | |---|---| | Up to £125,000 | 0% | | £125,001 -- £250,000 | 2% | | £250,001 -- £925,000 | 5% | | £925,001 -- £1,500,000 | 10% | | Above £1,500,000 | 12% | **Calculation for £500,000 property (standard buyer)** 1. First £125,000: £125,000 x 0% = £0 2. Next £125,000 (£125,001--£250,000): £125,000 x 2% = £2,500 3. Remaining £250,000 (£250,001--£500,000): £250,000 x 5% = £12,500 **Total SDLT: £15,000** Wait -- let me recalculate correctly: 1. £0--£125,000: £125,000 x 0% = £0 2. £125,001--£250,000: £125,000 x 2% = £2,500 3. £250,001--£500,000: £250,000 x 5% = £12,500 4. **Total: £0 + £2,500 + £12,500 = £15,000** The effective SDLT rate is 3% of the purchase price (£15,000 / £500,000). **First-time buyers** First-time buyers purchasing at £500,000 do not qualify for FTB relief, as relief is only available up to £500,000 but the property must be £500,000 or under. At exactly £500,000 the relief applies: - First £300,000: 0% - £300,001--£500,000: 5% x £200,000 = £10,000 - **FTB total: £10,000** (saving £5,000 vs standard rate) **Additional property surcharge** If this is a second home or buy-to-let, add a 3% surcharge to every band: - Standard rate: £15,000 - 3% surcharge: £500,000 x 3% = £15,000 - **Total for additional property: £30,000** Use a stamp duty calculator to model different scenarios.

More answers

• How much stamp duty on a £350,000 second home purchase in 2026/27?
• What is the first-time buyer stamp duty relief limit in 2026/27?