Buy-to-Let Stamp Duty Calculator
Calculate stamp duty on buy-to-let investments including the 5% additional property surcharge. Updated for January 2026.
Your Results
Stamp Duty to Pay
£20,000
Effective tax rate: 6.67%
Tax Breakdown
| Band | Rate | Tax |
|---|---|---|
| £0 - £125,000 | 5% | £6,250 |
| £125,001 - £250,000 | 7% | £8,750 |
| £250,001 - £300,000 | 10% | £5,000 |
| Additional Property | +5% | +£15,000 |
| Total | £20,000 | |
£0 - £125,000
5%
£6,250
£125,001 - £250,000
7%
£8,750
£250,001 - £300,000
10%
£5,000
Additional Property
+5%
+£15,000
Total
£20,000
Tax by Band
Added to 25-Year Mortgage
£117/month
Based on 5% interest rate, added to loan amount
Buy-to-Let Stamp Duty Explained
What is BTL SDLT?
Buy-to-let properties are subject to the same 5% surcharge as second homes, as they are classed as additional residential properties. Use our standard stamp duty calculator to compare rates across buyer types.
Investment Impact
The 5% surcharge significantly affects your initial investment. Factor this cost into your yield calculations using our rental yield calculator and review our comprehensive BTL guide.
First BTL Property
The surcharge applies even if this is your first buy-to-let, as long as you already own your main residence.
Buy-to-Let Stamp Duty Examples
| Property Price | Total SDLT | Effective Rate |
|---|---|---|
| £150,000 | £8,000 | 5.33% |
| £250,000 | £15,000 | 6.0% |
| £400,000 | £30,000 | 7.5% |
| £600,000 | £50,000 | 8.33% |
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Effective rate = Total SDLT ÷ Property Price
Special Considerations for Landlords
Company Purchases
If you're buying through a limited company, the same 5% surcharge applies. Properties over £500,000 purchased by companies may also attract the 17% rate in some circumstances.
Non-UK Residents
If you're not a UK resident, you'll pay an additional 2% surcharge on top of the 5% additional property rate, making the total surcharge 7%.
Multiple Property Purchases
Buying 6 or more residential properties in a single transaction may qualify for non-residential rates, which could reduce your overall tax bill.
Tax Deductibility
Stamp duty paid on a buy-to-let property is added to your acquisition costs, reducing your capital gains tax liability when you eventually sell.
Who Qualifies as a Buy-to-Let Buyer?
For stamp duty purposes, there is no separate "buy-to-let" classification. HMRC applies the 5% additional property surcharge to any purchase of a residential dwelling where the buyer already owns another residential property at the end of the day of purchase. The surcharge applies regardless of your intention to let the property, meaning it also covers second homes, holiday lets, and properties held for renovation.
Key points that determine whether you pay the surcharge:
- •Existing property ownership: If you own your main residence and buy a rental property, the surcharge applies. If you sold your main residence before buying, it does not
- •Worldwide property: Residential property owned anywhere in the world counts, including properties abroad inherited or purchased before moving to the UK
- •Joint ownership: If either buyer in a joint purchase owns another property, the surcharge applies to the entire transaction
- •Value threshold: The surcharge only applies if the new property costs £40,000 or more
Buy-to-Let vs Second Home: SDLT Differences
Same SDLT Rates
Buy-to-let properties and second homes attract exactly the same 5% additional property surcharge. HMRC makes no distinction between a holiday home and a rental investment for stamp duty purposes. The tax treatment is identical at the point of purchase.
Key Difference: Refund Eligibility
The critical distinction comes with refunds. If you are replacing your main residence (buying a new home before selling the old one), you can reclaim the surcharge when you sell within 36 months. This refund is not available for buy-to-let purchases, where the surcharge is a permanent cost. See our second home calculator for refund details.
How the 5% Surcharge Works in Practice
The 5% surcharge is added on top of each standard SDLT rate band, not applied as a flat 5% on the total price. This is an important distinction:
- •£0–£125,000: Standard rate 0% becomes 5% (0% + 5%)
- •£125,001–£250,000: Standard rate 2% becomes 7% (2% + 5%)
- •£250,001–£925,000: Standard rate 5% becomes 10% (5% + 5%)
- •£925,001–£1,500,000: Standard rate 10% becomes 15% (10% + 5%)
- •Over £1,500,000: Standard rate 12% becomes 17% (12% + 5%)
This progressive structure means the effective surcharge rate is always 5% of the total purchase price, but the total SDLT includes both the standard tax and the surcharge calculated band by band. Use our calculator above for an exact figure.
No Refund Available for BTL
Unlike second home purchases where you're replacing your main residence, there is no refund mechanism for buy-to-let purchases. The 5% surcharge is a permanent additional cost of investing in rental property. See our landlord guide for more tax considerations.
Frequently Asked Questions
What is the buy-to-let stamp duty surcharge?
Buy-to-let properties attract a 5% surcharge on top of standard SDLT rates. This surcharge was increased from 3% to 5% on 31 October 2024. It applies to the entire purchase price of properties over £40,000.
Can I deduct stamp duty as a landlord expense?
Stamp duty on a buy-to-let purchase is a capital expense, not a revenue expense. You cannot deduct it from your rental income for income tax purposes. However, it is added to your acquisition cost and reduces your capital gains tax liability when you sell the property.
Is it better to buy through a limited company?
Buying through a limited company (SPV) can be tax-efficient for higher-rate taxpayers because rental profits are subject to Corporation Tax at 25% rather than income tax at up to 45%. Companies can also deduct full mortgage interest. However, the 5% surcharge still applies and properties over £500,000 attract a 17% flat corporate rate.
Does the surcharge apply to my first buy-to-let?
Yes. If you already own your main home and purchase a buy-to-let, the 5% surcharge applies even though it is your first investment property. The surcharge applies whenever you own more than one residential property at completion.
Can I avoid the surcharge by selling my home first?
If you sell your only residential property before completing on the buy-to-let purchase, the surcharge may not apply as the buy-to-let would be your only property. However, this depends on the specific circumstances and completion timing. Seek professional advice.
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Emma Richardson, MRICS
Chartered Surveyor & Property Tax Specialist
Emma Richardson is a RICS-qualified Chartered Surveyor with over 12 years of experience in UK property taxation. She founded Stamp Duty Calculator to help buyers understand the complex world of property transaction taxes.