How Much Stamp Duty on Buy-to-Let? Calculator & Guide
Calculate your Stamp Duty bill for a buy-to-let purchase. Current SDLT rates with 5% additional property surcharge, worked examples, and ways to reduce your bill.
The Latch Team
Editorial
Stamp Duty Land Tax (SDLT) is one of the largest upfront costs when buying a buy-to-let property in England and Northern Ireland. Since the 5% additional property surcharge was introduced, landlords pay significantly more than owner-occupiers on every purchase.
This guide provides a clear breakdown of current SDLT rates for buy-to-let purchases, worked examples at different price points, the equivalent taxes in Scotland and Wales, and the limited circumstances where you can avoid or reclaim the surcharge.
Current SDLT Rates for Buy-to-Let Properties
When you buy a residential property as a buy-to-let investment (and you already own another residential property), you pay the standard SDLT rates plus an additional 5% surcharge on every band. The combined rates for 2025/26 are:
| Property Price Band | Standard Rate | BTL Rate (with 5% surcharge) | Tax on This Band |
|---|---|---|---|
| Up to £125,000 | 0% | 5% | Up to £6,250 |
| £125,001 to £250,000 | 2% | 7% | Up to £8,750 |
| £250,001 to £925,000 | 5% | 10% | Up to £67,500 |
| £925,001 to £1,500,000 | 10% | 15% | Up to £86,250 |
| Over £1,500,000 | 12% | 17% | Uncapped |
Important: The 5% surcharge applies to the entire purchase, not just the amount above a threshold. Every band is increased by 5 percentage points, which means the surcharge applies from the first pound.
Worked Examples at Common Price Points
The progressive band structure means SDLT calculations are not straightforward. Here are detailed breakdowns for typical buy-to-let purchase prices:
Example 1: £150,000 Property
| Band | Amount in Band | Rate | Tax |
|---|---|---|---|
| £0–£125,000 | £125,000 | 5% | £6,250 |
| £125,001–£150,000 | £25,000 | 7% | £1,750 |
| Total | £150,000 | £8,000 |
Example 2: £200,000 Property
| Band | Amount in Band | Rate | Tax |
|---|---|---|---|
| £0–£125,000 | £125,000 | 5% | £6,250 |
| £125,001–£200,000 | £75,000 | 7% | £5,250 |
| Total | £200,000 | £11,500 |
Example 3: £250,000 Property
| Band | Amount in Band | Rate | Tax |
|---|---|---|---|
| £0–£125,000 | £125,000 | 5% | £6,250 |
| £125,001–£250,000 | £125,000 | 7% | £8,750 |
| Total | £250,000 | £15,000 |
Example 4: £300,000 Property
| Band | Amount in Band | Rate | Tax |
|---|---|---|---|
| £0–£125,000 | £125,000 | 5% | £6,250 |
| £125,001–£250,000 | £125,000 | 7% | £8,750 |
| £250,001–£300,000 | £50,000 | 10% | £5,000 |
| Total | £300,000 | £20,000 |
Example 5: £500,000 Property
| Band | Amount in Band | Rate | Tax |
|---|---|---|---|
| £0–£125,000 | £125,000 | 5% | £6,250 |
| £125,001–£250,000 | £125,000 | 7% | £8,750 |
| £250,001–£500,000 | £250,000 | 10% | £25,000 |
| Total | £500,000 | £40,000 |
Quick Reference: Total SDLT by Purchase Price
For quick budgeting, here is a summary table of total SDLT payable at common buy-to-let price points:
| Purchase Price | Total SDLT (Buy-to-Let) | SDLT as % of Price |
|---|---|---|
| £100,000 | £5,000 | 5.0% |
| £150,000 | £8,000 | 5.3% |
| £200,000 | £11,500 | 5.8% |
| £250,000 | £15,000 | 6.0% |
| £300,000 | £20,000 | 6.7% |
| £400,000 | £30,000 | 7.5% |
| £500,000 | £40,000 | 8.0% |
As the purchase price increases, SDLT takes up a progressively larger percentage of the total cost. At £100,000 it is 5.0%, but at £500,000 it reaches 8.0%. This significantly affects yield calculations for higher-value properties.
Use our free Stamp Duty Calculator to instantly calculate the exact SDLT payable on any buy-to-let purchase, including the 5% additional property surcharge.
Scotland: Land and Buildings Transaction Tax (LBTT)
Scotland has its own property tax called Land and Buildings Transaction Tax (LBTT), managed by Revenue Scotland. Buy-to-let investors pay the standard LBTT rates plus an Additional Dwelling Supplement (ADS) of 8% on the total purchase price:
| Property Price Band | Standard LBTT Rate | With 8% ADS |
|---|---|---|
| Up to £145,000 | 0% | 8% |
| £145,001 to £250,000 | 2% | 10% |
| £250,001 to £325,000 | 5% | 13% |
| £325,001 to £750,000 | 10% | 18% |
| Over £750,000 | 12% | 20% |
Scotland is more expensive: The 8% Additional Dwelling Supplement in Scotland is significantly higher than the 5% surcharge in England. A £200,000 buy-to-let purchase in Scotland attracts ADS of £16,000 on top of the standard LBTT, compared to an SDLT surcharge element of approximately £8,600 in England.
Wales: Land Transaction Tax (LTT)
Wales has Land Transaction Tax (LTT), managed by the Welsh Revenue Authority. The higher residential rates for buy-to-let purchases are:
| Property Price Band | Standard LTT Rate | Higher Rate (BTL) |
|---|---|---|
| Up to £225,000 | 0% | 4% |
| £225,001 to £400,000 | 6% | 7.5% |
| £400,001 to £750,000 | 7.5% | 9% |
| £750,001 to £1,500,000 | 10% | 11.5% |
| Over £1,500,000 | 12% | 13.5% |
Wales uses a different band structure to England, with a higher starting threshold of £225,000 for the nil-rate band at the standard rate. However, the higher rates for buy-to-let purchases apply from the first pound.
When the Surcharge Does Not Apply
There are specific circumstances where you can avoid the additional property surcharge:
- Replacing your main residence: If you are selling your current main residence and buying a new one, the surcharge does not apply — even if you briefly own both properties. You must sell the old property within 36 months of buying the new one.
- Properties under £40,000: The surcharge does not apply to properties purchased for less than £40,000.
- Caravans, mobile homes, and houseboats: These are not classified as dwellings for SDLT purposes, so the surcharge does not apply.
- Transfer due to divorce or dissolution: Property transfers between spouses or civil partners as part of a divorce settlement are exempt from SDLT entirely.
- Inheritance: Inheriting a property does not trigger SDLT. However, if you subsequently buy another property, the inherited property counts towards the surcharge assessment.
Relief Options for Landlords
In limited circumstances, you may be able to reclaim or reduce the surcharge:
Refund for Selling Previous Main Residence
If you paid the surcharge because you owned two properties simultaneously, but you sell your previous main residence within 36 months, you can apply for a refund of the surcharge amount. The refund must be claimed within 12 months of the sale (or 12 months from the filing date if later).
Multiple Dwellings Relief
If you buy multiple properties in a single transaction (for example, a block of flats), Multiple Dwellings Relief (MDR) allows you to calculate SDLT based on the average price per dwelling rather than the total. This can significantly reduce the overall SDLT bill on portfolio purchases.
Professional advice recommended: SDLT reliefs are complex and the rules change frequently. For purchases over £250,000, the potential savings from professional tax advice usually outweigh the cost of the consultation.
Factoring SDLT into Your Investment Calculations
SDLT is not an allowable expense against rental income, nor can it be deducted from your profits for income tax purposes. However, it is added to the base cost of the property when calculating Capital Gains Tax (CGT) if you eventually sell. This means SDLT reduces your CGT liability in the future, but it has no impact on your annual tax bill.
When calculating yields, always include SDLT in the total acquisition cost:
Gross Yield Calculation
Gross yield = (Annual rent / Total acquisition cost) x 100. Total acquisition cost = Purchase price + SDLT + legal fees + survey + mortgage fees. For example, a £200,000 property with £11,500 SDLT, £1,500 legal fees, and £1,000 mortgage fees has a total cost of £214,000. At £1,000/month rent (£12,000/year), the gross yield is 5.6%, not the 6.0% calculated on purchase price alone.
Include all costs
Latch helps you record all acquisition costs against each property, giving you accurate yield calculations that reflect your true investment rather than just the purchase price.
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Get Started with LatchDisclaimer: This guide provides general information about Stamp Duty Land Tax, Land and Buildings Transaction Tax, and Land Transaction Tax based on rates in effect as of February 2026. Tax rates and thresholds are subject to change by government budget announcements. SDLT applies in England and Northern Ireland; LBTT applies in Scotland; LTT applies in Wales. Always verify current rates before purchasing and consider taking professional tax advice for significant transactions. Last updated February 2026.
