Stamp Duty Land Tax (SDLT) is a tax you may pay when buying property in England or Northern Ireland. The amount depends on the purchase price, whether you are a first-time buyer, whether you already own another property, and whether reliefs or surcharges apply. Scotland and Wales use different property taxes, so check the right system before setting your budget.

What SDLT Covers

SDLT is usually dealt with by your conveyancer after completion, but the money normally has to come from your own funds. It is not automatically rolled into your mortgage, so it should sit in your budget alongside the deposit, conveyancing fees, searches, valuation, surveys, moving costs and any mortgage product fee.

According to GOV.UK, SDLT applies to property or land bought in England and Northern Ireland above the relevant threshold (GOV.UK, 2026). In Scotland, buyers usually look at Land and Buildings Transaction Tax. In Wales, the equivalent is Land Transaction Tax.

How the Calculation Works

SDLT is normally calculated in bands, not as one flat rate on the whole price. For a standard residential purchase, each slice of the price can be taxed at a different rate. As of June 2026, the standard residential SDLT rates start with a 0% band up to £125,000, then higher rates apply to the slices above that threshold. Tax rules change, so verify current terms with GOV.UK, your conveyancer or a qualified tax professional before deciding.

First-time buyer relief can reduce the bill if all buyers meet the conditions and the property price is within the eligible limit. GOV.UK explains the current relief rules and thresholds on its SDLT guidance pages (GOV.UK, 2026). If one buyer has owned a property before, or if you are buying with a partner who has, the result can change.

Read also: Summer Rate Lock Strategy for Buyers Planning to Close in August

What to Enter in the Calculator

Use the purchase price, buyer type and property status. The key questions are whether the home is your main residence, whether you are replacing a main residence, whether you own another property, and whether you are a first-time buyer. Additional property purchases can attract a surcharge, and non-UK resident buyers may face another surcharge.

The calculator is designed for planning. It may not cover every edge case, including linked transactions, shared ownership elections, company purchases, mixed-use property, leasehold premiums, gifted transfers or complex ownership structures. Those cases need proper tax or conveyancing advice.

Why It Matters Before You Apply

A lender’s affordability assessment looks at whether the mortgage is sustainable, but SDLT still affects the cash needed to complete. MoneyHelper encourages buyers to plan for the wider costs of buying a home, not just the mortgage deposit (MoneyHelper, 2026). Which? also groups tax, fees and mortgage costs as part of the home-buying process (Which?, 2026).

This article is general educational information, not regulated mortgage advice, personalised financial advice, lending advice, legal advice or tax advice. Refisage is not authorised by the Financial Conduct Authority (FCA). Consider speaking to an FCA-authorised mortgage adviser, your conveyancer, MoneyHelper or a qualified tax professional before making a decision. Your home may be repossessed if you do not keep up repayments on your mortgage.