Home buyers must pay stamp duty when they purchase a property and the tax can add thousands on to their moving bills – our calculator lets you work out how much you would pay. 

Stamp duty  is levied at different rates above certain thresholds and has been tinkered with repeatedly over the years. 

First-time buyers get a special stamp duty exemption, while buy-to-let and second home buyers pay more. 

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What has happened to stamp duty?

A stamp duty cut was announced by Chancellor Kwasi Kwarteng in his mini-Budget but home buyers hoping for a major overhaul were left disappointed. 

The threshold at which stamp duty kicks in was immediately and permanently doubled from £125,000 to £250,000, but the rates did not change meaning the maximum saving is £2,500.

First-time buyers saw their exemption level raised from £300,000 to £425,000 and pay no stamp duty up to that level – saving them £6,250 if they buy a £425,000 home.

Unfortunately, new Chancellor Jeremy Hunt later announced the changes would be reversed from the end of March 2025, but until then the rates and thresholds are as detailed below.

How much stamp duty would you pay?

Average £270,000 home: £1,000 

£350,000 home: £5,000

£450,000 home: £10,000

£500,000 home: £12,500

£750,000 home: £25,000

£1,000,000 home: £41,250

How stamp duty works

Stamp duty is charged on the purchase price of a home and levelled at different rates above thresholds.

First-time buyers had a stamp duty exemption up to £300,000, which has now been raised to £425,000. They have a maximum purchase price ceiling aboive which the exemption does not apply and this has also been lifted to £625,000.

Previously, stamp duty kicked in above a threshold of £125,000 at 2 per cent and then stepped up to 5 per cent above £250,000

Now the first £250,000 is tax-free and amounts above that are charged at 5 per cent until the 10 per cent threshold at £925,000. 

For first-time buyers, the first £425,000 is tax free and then the 5 per cent rate kicks in. If they buy a property costing more than £625,000 they lose their exemption 

The last major permanent stamp duty reform by George Osborne saw bills eased for some home buyers further down the price ladder and cliff edges removed, but higher charges for those buying expensive homes.

Stamp duty bills still remain substantial for those buyers under Kwasi Kwarteng’s cut, but they will see a reduction of £2,500.

In April 2016, stamp duty on buy-to-let and other additional properties was reformed, with the addition of a new 3 per cent surcharge on all rates. This will remain under the new higher threshold system. It means that stamp duty rates for buy-to-lets and second homes start at 3 per cent up to £250,000, rising to 8 per cent above this.