First-Time Buyer Stamp Duty (2026): What You Actually Pay
The rules changed on 1 April 2025 — and many buyers are still working from outdated figures. As a first-time buyer in England, you pay nothing up to £300,000. Here’s exactly what you’ll pay at every price, the traps, and how Scotland and Wales differ.
Quick Answer
As a first-time buyer in England and Northern Ireland, you pay no stamp duty on properties up to £300,000, and 5% on the portion between £300,001 and £500,000. If your home costs more than £500,000, you get no first-time buyer relief at all and pay the standard rates on the whole price. So a first home at £300,000 costs £0, at £350,000 costs £2,500, at £400,000 costs £5,000, and at £500,000 costs £10,000.
These figures changed on 1 April 2025, when the temporary higher thresholds ended — the first-time buyer nil-rate band dropped from £425,000 to £300,000, and the relief cap fell from £625,000 to £500,000. A lot of online content still quotes the old numbers, so it’s worth checking you’re working from current figures. Scotland and Wales have their own separate systems with very different first-time buyer treatment. Stamp duty must be paid within 14 days of completion and usually can’t be added to your mortgage.
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The Current First-Time Buyer Stamp Duty Rates
Let’s start with the exact rates in force for 2026 (in England and Northern Ireland), on a first home you’ll live in (as of 2026 — confirm current). Stamp duty is charged on a “slice” basis — each rate applies only to the portion of the price within that band, so you never pay the top rate on the whole price:
| Portion of property price | First-time buyer rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Over £500,000 | No relief — standard rates apply to the whole price |
That relief is genuinely valuable: for the many first-time buyers purchasing under £300,000, stamp duty is simply £0 — one of the biggest upfront savings available on a first home. It sits alongside the other first-time buyer advantages and is one of the costs to factor into your overall buying budget.
What You’ll Actually Pay — Worked Examples
Because the slice system confuses people, here’s exactly what a first-time buyer pays at common price points in England/NI:
| Property price | FTB stamp duty | How it’s calculated |
|---|---|---|
| £250,000 | £0 | Under £300,000 — nothing to pay |
| £300,000 | £0 | At the threshold — nothing to pay |
| £350,000 | £2,500 | 5% on the £50,000 above £300,000 |
| £400,000 | £5,000 | 5% on the £100,000 above £300,000 |
| £450,000 | £7,500 | 5% on the £150,000 above £300,000 |
| £500,000 | £10,000 | 5% on the £200,000 above £300,000 |
A stamp duty calculator is coming
The examples above cover the common price points, but for an exact figure on your specific purchase price — including second-home and home-mover scenarios — a dedicated calculator is the easiest tool. We’re planning an interactive first-time buyer stamp duty calculator; in the meantime, the official HMRC calculator on GOV.UK gives a precise figure, or a broker will confirm it as part of your budget.
What Changed in April 2025 (and Why Old Figures Are Wrong)
This is the crucial context that catches people out. A temporary stamp duty relief introduced in September 2022 ended on 31 March 2025. From 1 April 2025, the thresholds reverted to lower levels — meaning first-time buyers now pay more than they would have in early 2025:
| First-time buyer relief | Before 1 Apr 2025 | Now (2026) |
|---|---|---|
| 0% (nil-rate) band | Up to £425,000 | Up to £300,000 |
| Relief available up to | £625,000 | £500,000 |
The real-world impact
A first-time buyer purchasing at £400,000 went from paying £0 before April 2025 to £5,000 now — a £5,000 swing purely from the rule change. Because so much online content (and even some advice) still quotes the old £425,000 threshold, it’s genuinely important to work from the current figures when budgeting. If you saw an article saying first-time buyers pay nothing up to £425,000, that information is now out of date.
Who Counts as a First-Time Buyer?
The relief has strict eligibility, and it’s stricter than many assume. To qualify for first-time buyer stamp duty relief:
- You must never have owned a residential property before — anywhere in the world, not just the UK.
- This includes inherited property and any share in a property — if you’ve ever owned or part-owned one, you don’t qualify.
- You must intend to live in the property as your main residence (it’s not for buy-to-let).
- Every buyer named on the purchase must be a first-time buyer. If you buy jointly with someone who has owned before, nobody gets the relief — you pay standard rates.
The joint-purchase trap
This last point catches many couples out: if one of you is a first-time buyer and the other has previously owned (even years ago, even abroad), the whole purchase loses first-time buyer relief and pays standard rates. It’s worth understanding this before you buy, as it can affect how you structure the purchase — a broker or conveyancer can talk through the options for your situation.
The £500,000 Cliff-Edge
One feature of the relief deserves special attention because it’s a genuine cliff-edge, not a gentle taper. If your first home costs £500,000 or less, you get the first-time buyer rates (0% to £300k, 5% above). But if it costs even £1 over £500,000, you lose the relief entirely and pay standard rates on the whole price:
| First home price | Stamp duty |
|---|---|
| £500,000 (with FTB relief) | £10,000 |
| £505,000 (no relief — standard rates) | ~£15,250 |
Nudging just over £500,000 costs you thousands more — so if you’re buying near that line, it’s worth being aware of it when negotiating. Standard rates (which apply above £500,000, and to home movers) are: 0% to £125,000, 2% on £125,001–£250,000, 5% on £250,001–£925,000, 10% to £1.5m, and 12% above. If you’re buying an additional property rather than a first home — for example a buy-to-let or second home — a 5% surcharge applies on top and no first-time buyer relief is available.
Scotland and Wales Are Completely Different
Here’s something many guides gloss over: stamp duty only exists in England and Northern Ireland. Scotland and Wales have their own separate property taxes with their own rates and their own first-time buyer treatment — so the same-priced home can cost very different amounts depending on where you buy:
Scotland — LBTT
Land and Buildings Transaction Tax, via Revenue Scotland. First-time buyer relief raises the nil-rate band to £175,000. A £300,000 first home costs roughly £4,000.
Wales — LTT
Land Transaction Tax, via the Welsh Revenue Authority. Notably, Wales has no first-time buyer relief at all — but a higher general nil-rate band of £225,000. A £300,000 first home costs roughly £4,500.
Same home, three very different bills
A £300,000 first home costs a first-time buyer approximately: £0 in England/NI, £4,000 in Scotland, and £4,500 in Wales. Those are real differences that directly affect your budget, so always use the rates for the nation you’re buying in — not a generic “UK stamp duty” figure.
When and How You Pay
A few practical essentials that first-time buyers often don’t realise until late in the process:
- It’s due within 14 days of completion — your solicitor or conveyancer usually files the return and pays on your behalf, but the money comes from you.
- You usually can’t add it to your mortgage — stamp duty is a cash cost on top of your deposit and fees, so it must be budgeted for separately.
- Even a £0 bill may need a return — in many cases a return is still filed even when no tax is due; your conveyancer handles this.
- Shared ownership — there are specific rules for how stamp duty works on shared ownership purchases, with options on how and when you pay.
Because stamp duty is a cash cost you can’t usually borrow, it’s one of the most important numbers to pin down early — alongside your deposit and other buying costs — so you know the true amount you need before you start.
The bottom line
As a first-time buyer in England and Northern Ireland in 2026, you pay nothing up to £300,000 and 5% on the slice from £300,001 to £500,000 — so £0 at £300k, £2,500 at £350k, £5,000 at £400k, £10,000 at £500k. Over £500,000 you lose the relief entirely. These thresholds dropped on 1 April 2025, so ignore older figures quoting £425,000. Every buyer must be a genuine first-time buyer (never owned anywhere in the world), and Scotland and Wales run completely different systems. Stamp duty is a cash cost due within 14 days of completion that you usually can’t add to the mortgage — so budget for it from the start.
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Frequently Asked Questions
Do first-time buyers pay stamp duty?
In England and Northern Ireland, first-time buyers pay no stamp duty on properties up to £300,000, and 5% on the portion between £300,001 and £500,000. If the property costs more than £500,000, no first-time buyer relief applies and standard rates are charged on the whole price. So most first-time buyers purchasing below £300,000 pay nothing. These thresholds changed on 1 April 2025, dropping from a previous £425,000 nil-rate band. Scotland and Wales have their own separate systems with different first-time buyer treatment.
How much stamp duty does a first-time buyer pay?
In England and Northern Ireland: £0 on a £300,000 home, £2,500 on £350,000, £5,000 on £400,000, £7,500 on £450,000, and £10,000 on £500,000. The calculation is 5% on whatever portion falls between £300,001 and £500,000. Above £500,000 you lose first-time buyer relief entirely and pay standard rates on the full price. Stamp duty is charged on a slice basis, so each rate applies only to the part of the price within that band. Scotland and Wales charge different amounts under their own systems.
What is the first-time buyer stamp duty threshold in 2026?
In England and Northern Ireland, first-time buyers pay 0% up to £300,000 and 5% from £300,001 to £500,000, with no relief available above £500,000. These thresholds have applied since 1 April 2025, when the temporary higher relief (a £425,000 nil-rate band and £625,000 relief cap) expired. No further changes have been announced for 2026, so these rates remain current. Always confirm the latest position, as thresholds can change at a Budget. Scotland and Wales use different thresholds under LBTT and LTT respectively.
Who qualifies as a first-time buyer for stamp duty?
To qualify, you must never have owned a residential property anywhere in the world, including inherited property or any share in a property. You must intend to live in the home as your main residence. Crucially, every buyer named on the purchase must be a first-time buyer — if you buy with someone who has owned before, nobody gets the relief and standard rates apply to the whole purchase. This catches out many couples where one partner previously owned a home, even years ago or abroad.
Do first-time buyers pay stamp duty over £500,000?
Yes, and it’s a cliff-edge. If your first home costs £500,000 or less, you get first-time buyer relief (0% to £300,000, 5% above). But if it costs even slightly over £500,000, you lose the relief entirely and pay standard rates on the whole price — 0% to £125,000, 2% to £250,000, 5% to £925,000, and so on. This means nudging just over £500,000 can cost thousands more, so it’s worth being aware of the threshold when buying near that price.
Is stamp duty different in Scotland and Wales?
Yes, completely. Stamp Duty Land Tax only applies in England and Northern Ireland. Scotland charges Land and Buildings Transaction Tax (LBTT) through Revenue Scotland, with first-time buyer relief up to a £175,000 nil-rate band. Wales charges Land Transaction Tax (LTT) through the Welsh Revenue Authority and has no first-time buyer relief, though a higher general nil-rate band of £225,000. As a result, the same £300,000 first home costs roughly £0 in England, £4,000 in Scotland and £4,500 in Wales, so always use the rates for where you’re buying.
- GOV.UK — Stamp Duty Land Tax: residential property rates and first-time buyer relief (from 1 April 2025)
- MoneyHelper — Stamp Duty calculator and rates
- Revenue Scotland — Land and Buildings Transaction Tax (LBTT); Welsh Revenue Authority — Land Transaction Tax (LTT)
- HMRC — first-time buyer relief eligibility conditions
Important information
nextmove is an introducer, not a lender, mortgage adviser or tax adviser. This article is for general information only and does not constitute financial or tax advice. Stamp duty rates, thresholds, first-time buyer relief and the devolved Scottish and Welsh taxes are indicative, can change (typically at a Budget), vary by circumstances, and should be confirmed as current with GOV.UK, Revenue Scotland, the Welsh Revenue Authority or a conveyancer before you rely on them. Figures are examples for England and Northern Ireland unless stated. We introduce you to FCA-regulated mortgage brokers who can help you budget and advise on your mortgage, and we may receive a fee or commission for doing so.
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