Do First Time Buyers Pay Stamp Duty in 2026?

If you’re planning to buy your first home in 2026, the extra costs can feel overwhelming. One of the biggest charges you’ll face in England or Northern Ireland is Stamp Duty Land Tax (SDLT), often referred to as stamp duty for first time buyers when specific reliefs apply. This is a one-off tax you pay when you buy a property or land over a certain price.

For years, the government has offered different schemes to help first-time buyers with stamp duty for first time buyers. But in April 2025, new rules came in that changed the relief thresholds and rates.

So, do first-time buyers pay Stamp Duty in 2026? Yes, you’ll pay Stamp Duty if your property costs more than £300,000 in England or Northern Ireland.

You only pay tax on the portion of your home’s price that goes above the threshold. The government relief still gives first-time buyers a higher limit than other buyers, but the April 2025 update lowered that limit compared to earlier years.

Current Stamp Duty Rules for First-Time Buyers

The current rules for England and Northern Ireland came into effect on 1 April 2025, ending the temporary relief that had been in place since September 2022.

The nil-rate band for first-time buyers dropped from £425,000 back to £300,000. That means you pay no Stamp Duty on properties up to £300,000.

The maximum property value that qualifies for relief also dropped, from £625,000 to £500,000. If your property costs more than £500,000, you lose the first-time buyer relief and pay the standard rates on the entire amount.

How Much Stamp Duty Will You Pay in 2026?

Stamp duty for first time buyers works like income tax. You pay different rates for different portions of the price.

Here’s how it looks for first-time buyers after 1 April 2025:

Property Value (England/NI)	First-Time Buyer SDLT Rate
Up to £300,000	0%
£300,001–£500,000	5% (only on the part above £300,000)
Above £500,000	Standard rates apply (no relief)

 

For example, if you buy a home for £350,000, you’ll pay nothing on the first £300,000, and 5% on the remaining £50,000, so £2,500 in total.

How the 2025 Changes Affect You

The reduction in the nil-rate threshold means more first-time buyers now need to pay Stamp Duty.

In 2023, the average first-time buyer property price was £288,136, which still falls under the new £300,000 limit. But location makes a big difference.

The hardest-hit areas are in Southern England, where prices are higher. In London, for instance, the average home costs around £531,000. A first-time buyer purchasing at that price would owe 5% in Stamp Duty, about £11,550.

Before April 2025, a £400,000 property would have been tax-free. Now, it carries a £5,000 SDLT bill.

Who Qualifies for First-Time Buyer Relief?

To qualify, you must meet all of the following criteria:

• The property must be your main or only home.
• You must never have owned any residential property before, including overseas properties or inherited homes.
• If you’re buying with someone else, both of you must be first-time buyers. If one person isn’t, you lose the relief.

Does Relief Apply to Shared Ownership?

Yes, relief can apply to shared ownership properties worth up to £500,000.

You can choose to pay Stamp Duty only on the share you buy first or on the property’s full value. If you later buy more shares (a process called staircasing), you won’t get the relief again. SDLT only becomes due on the new share once your ownership passes 80%.

What About Scotland and Wales?

Stamp Duty Land Tax applies only to England and Northern Ireland.

Scotland has its own Land and Buildings Transaction Tax (LBTT). First-time buyers there pay no LBTT up to £175,000, and 2% on amounts between £175,001–£250,000. There were no threshold changes in April 2025.

Wales uses Land Transaction Tax (LTT). There’s no specific relief for first-time buyers, but all purchases under £225,000 are exempt.

How to Calculate Stamp Duty

You can calculate stamp duty for first time buyers yourself or use online tools such as those from HMRC or KIS Finance.

For example, if you buy a property in England or Northern Ireland for £450,000, here’s the breakdown:

• £0 on the first £300,000
• 5% on the next £150,000 = £7,500 total

When and How to Pay

You have 14 days from the completion date to pay your Stamp Duty.

Even if your property price is under the £300,000 threshold, you must still file a Stamp Duty return. Your solicitor or conveyancer usually handles this for you.

If you pay directly, you can do it online via HMRC using the 11-character reference number you receive. Payments can be made through online banking or bank transfer, but HMRC doesn’t accept credit cards.

Late payments can lead to penalties, £100 if filed within three months and £200 if later.

Buying a New Home Before Selling Your Old One

If you buy a new home before selling your current one, your purchase counts as a second home, even if you plan to move in. You’ll need to pay an extra 5% surcharge on top of the normal rates if the property costs more than £40,000.

You can claim this extra charge back once you sell your previous home, as long as it happens within three years of completing the new purchase. If you need temporary funds to cover the cost, bridging finance can help fill the gap.

Ways to Reduce Your Stamp Duty Bill

You can’t avoid paying SDLT if it’s due, but you can reduce the amount in a few legal ways.

Try negotiating the purchase price to stay under the £300,000 threshold. For example, if the property is listed at £305,000, asking the seller to lower it slightly could save you thousands.

You can also ask for fixtures and fittings, like carpets, curtains, or appliances, to be listed separately in the contract. These aren’t taxed by HMRC and could reduce your taxable amount. Always confirm these details with your solicitor before proceeding.

Non-UK Resident Surcharges

If you’re not classed as a UK resident, a 2% surcharge applies to your Stamp Duty rate. To qualify as a resident, you must have spent at least 183 days in the UK during the 12 months before your purchase.

Mixed-Use Properties

If your property is mixed-use (for example, a flat above a shop), first-time buyer relief doesn’t apply.

These purchases fall under non-residential Stamp Duty rates, which are usually lower. You’ll pay 0% up to £150,000, 2% from £150,001 to £250,000, and 5% above £250,000.

First-Time Buyer Stamp Duty: FAQs

1. Will I pay Stamp Duty if my first home costs £295,000 in 2026?

No. Properties up to £300,000 are exempt for first-time buyers in England and Northern Ireland.

2. How much will I pay if my first home costs £550,000?

You won’t qualify for relief since the limit is £500,000. You’ll pay standard rates, which come to £17,500 for a £550,000 property.

3. Can I still get relief if I use a gifted deposit?

Yes, as long as the person gifting the money isn’t named on the title deeds.

4. How long do I have to pay the tax?

You must pay within 14 days of completion. Late payments can trigger penalties.

5. I inherited a property abroad but sold it straight away. Do I still qualify?

No. Anyone who has ever owned a property anywhere in the world, even through inheritance, doesn’t qualify as a first-time buyer.