How much is stamp duty on a buy-to-let property?

Buy-to-let buyers in England and Northern Ireland pay the standard SDLT bands plus a 5 percentage point surcharge on the whole price. On a 200,000 pound buy-to-let that comes to 11,500 pounds: 5% on the first 125,000 pounds and 7% on the remaining 75,000 pounds.

When did the buy-to-let surcharge rise to 5%?

The higher rates for additional dwellings rose from 3% to 5% for purchases completing on or after 31 October 2024, announced in the Autumn Budget 2024. The 5% rate still applies in 2026.

Do limited companies pay the stamp duty surcharge?

Yes. A company buying residential property pays the additional 5% surcharge on the entire price, even on its first purchase. Companies never benefit from first-time buyer relief.

Do first-time buyers pay the surcharge on a buy-to-let?

If the buy-to-let is the only property you will own, the surcharge does not apply because you are not buying an additional dwelling. However, buying a property to let it out means you lose first-time buyer relief on that purchase, so you pay the standard bands instead.

Can I reclaim the surcharge if I sell my old home?

Yes, in one specific case. If you bought a new main residence before selling the old one and paid the surcharge, you can reclaim it provided you sell the previous main residence within three years of the purchase.

Is stamp duty different in Scotland and Wales?

Yes. Scotland charges Land and Buildings Transaction Tax with an Additional Dwelling Supplement of 8%, and Wales charges Land Transaction Tax with its own higher rates for additional properties. The SDLT figures in this guide apply to England and Northern Ireland.

Stamp duty on buy-to-let property

What the additional property surcharge costs, how the bands stack, and the worked numbers you should run before you offer.

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Buy-to-let purchases in England and Northern Ireland pay Stamp Duty Land Tax at the standard residential bands plus a 5 percentage point surcharge across every band. The surcharge applies whenever you already own another dwelling, and to every purchase made through a company. On a 200,000 pound buy-to-let, the bill is 11,500 pounds.

The rates that apply in 2026

Stamp Duty Land Tax (SDLT) is charged in slices, like income tax. Each portion of the purchase price falls into a band and is taxed at that band's rate. Buy-to-let and second-home buyers pay the same bands as everyone else, plus the higher rates for additional dwellings: an extra 5 percentage points on every band, charged from the first pound.

The surcharge rose from 3% to 5% for completions on or after 31 October 2024, and the temporary nil-rate threshold of 250,000 pounds ended in April 2025. Both changes are reflected in the table below, which shows the position for purchases completing in 2026.

SDLT bands for additional dwellings, England and Northern Ireland
Price slice	Standard rate	With 5% surcharge
Up to 125,000	0%	5%
125,001 to 250,000	2%	7%
250,001 to 925,000	5%	10%
925,001 to 1,500,000	10%	15%
Above 1,500,000	12%	17%

Figures in pounds. Source: HMRC SDLT guidance, June 2026. Scotland and Wales operate separate taxes with their own surcharges.

Worked examples

The slicing matters. A common mistake is multiplying the whole price by the top rate you touch, which overstates the bill. Here is the arithmetic done properly at three price points that cover most UK buy-to-let purchases.

150,000 pound purchase

First 125,000 at 5% is 6,250. Remaining 25,000 at 7% is 1,750. Total SDLT: 8,000 pounds, or 5.3% of the price.

200,000 pound purchase

First 125,000 at 5% is 6,250. Remaining 75,000 at 7% is 5,250. Total SDLT: 11,500 pounds, or 5.8% of the price.

300,000 pound purchase

First 125,000 at 5% is 6,250. Next 125,000 at 7% is 8,750. Final 50,000 at 10% is 5,000. Total SDLT: 20,000 pounds, or 6.7% of the price.

Notice the effective rate climbs with price. That is one reason many investors target the 100,000 to 250,000 pound range in higher-yielding cities: the tax drag per pound of rent is smaller.

Who pays the surcharge

You pay the higher rates if, at the end of the day of completion, you own an interest in more than one dwelling and you are not replacing your main residence. In practice that catches almost every buy-to-let purchase by an existing homeowner. Married couples and civil partners are treated as one unit, so a spouse's property counts as yours for the test.

Companies pay the surcharge on every residential purchase, including the first. There is no way to avoid the higher rates by incorporating; the decision between personal and company ownership should be made on income tax and financing grounds instead, which we cover in limited company vs personal name.

Edge cases worth knowing

Replacing your main residence: standard rates apply even if you own other properties, provided the old home is sold.
Bought before selling: pay the surcharge, then reclaim it if the old main residence sells within three years.
Properties under 40,000 pounds and most caravans, houseboats and mobile homes are outside the surcharge.
Inherited shares of 50% or less in a dwelling are ignored for three years after inheritance.
The SDLT return and payment are due within 14 days of completion; your conveyancer normally files it.

Non-resident buyers

Buyers who are not UK resident for SDLT purposes pay a further 2 percentage point surcharge on top of everything above. The residence test is specific to SDLT: broadly, you need 183 days in the UK in any continuous 365 day window around completion. A non-resident investor buying a 200,000 pound buy-to-let therefore pays 9% on the first slice and 9% effective on the rest of the banding, a total of 15,500 pounds rather than 11,500.

Budgeting for stamp duty properly

SDLT is the single largest acquisition cost on most buy-to-let purchases, usually two to four times the legal and survey costs combined. It cannot be added to the mortgage, so it comes straight out of investable cash and reduces the deposit you can put down. Our affordability calculator deducts stamp duty at the additional property rate automatically when it works out your maximum purchase price, which is why the number it returns is lower than a simple deposit multiple.

Two planning points follow. First, run the SDLT figure before you view, not after you offer, so the total cash requirement never surprises you. Second, remember SDLT is deductible against capital gains tax when you eventually sell, so keep the completion statement with your records.

Frequently asked questions

How much is stamp duty on a buy-to-let property?: Buy-to-let buyers in England and Northern Ireland pay the standard SDLT bands plus a 5 percentage point surcharge on the whole price. On a 200,000 pound buy-to-let that comes to 11,500 pounds: 5% on the first 125,000 pounds and 7% on the remaining 75,000 pounds.
When did the buy-to-let surcharge rise to 5%?: The higher rates for additional dwellings rose from 3% to 5% for purchases completing on or after 31 October 2024, announced in the Autumn Budget 2024. The 5% rate still applies in 2026.
Do limited companies pay the stamp duty surcharge?: Yes. A company buying residential property pays the additional 5% surcharge on the entire price, even on its first purchase. Companies never benefit from first-time buyer relief.
Do first-time buyers pay the surcharge on a buy-to-let?: If the buy-to-let is the only property you will own, the surcharge does not apply because you are not buying an additional dwelling. However, buying a property to let it out means you lose first-time buyer relief on that purchase, so you pay the standard bands instead.
Can I reclaim the surcharge if I sell my old home?: Yes, in one specific case. If you bought a new main residence before selling the old one and paid the surcharge, you can reclaim it provided you sell the previous main residence within three years of the purchase.
Is stamp duty different in Scotland and Wales?: Yes. Scotland charges Land and Buildings Transaction Tax with an Additional Dwelling Supplement of 8%, and Wales charges Land Transaction Tax with its own higher rates for additional properties. The SDLT figures in this guide apply to England and Northern Ireland.

Sources and further reading

Written by the Clarity Property Investments research team. Last reviewed 12 June 2026. This article is general information, not financial or tax advice.