Stamp Duty Rates for 2026: No New Changes Announced
Current stamp duty rates remain unchanged for 2026. See the full rate bands, before/after April 2025 comparison, and reform proposals under discussion.
In this article
Key Takeaways
- No stamp duty changes announced for 2026. Current rates from April 2025 remain in effect
- Standard nil-rate band is £125,000 (down from £250,000 pre-April 2025), increasing costs by £2,500 for most buyers
- First-time buyer relief threshold reduced from £425,000 to £300,000, with maximum property value capped at £500,000
- Additional property surcharge increased from 3% to 5%, significantly impacting buy-to-let investors and second home buyers
- No further rate changes expected before 2027 at earliest, providing planning certainty for buyers
- Reform proposals under discussion include inflation-linking thresholds and annual property levies, but no legislative timeline exists
- Market saw 15-20% transaction volume reduction in April-May 2025 as buyers adjusted to higher upfront costs
No New Changes for 2026
There are no new stamp duty changes announced for 2026. The current rates reflect the April 2025 threshold reductions, not a "freeze" of temporary higher thresholds. The standard nil-rate band returned to £125,000, first-time buyer relief threshold to £300,000, and the additional property surcharge increased to 5%. These rates are the new permanent baseline unless further legislation is introduced. Use our stamp duty calculator to work out your exact liability.
Key Point
The current rates are NOT temporary. The April 2025 changes reversed the temporary COVID-era thresholds back to lower levels and added a permanent 5% surcharge. No further changes have been announced for 2026.
Current SDLT Rate Bands
| Band | Standard Rate | Additional Property |
|---|---|---|
| Up to £125,000 | 0% | 5% |
| £125,001 – £250,000 | 2% | 7% |
| £250,001 – £925,000 | 5% | 10% |
| £925,001 – £1,500,000 | 10% | 15% |
| Over £1,500,000 | 12% | 17% |
What the 2026 Rates Mean for Buyers
The current 2026 rates represent a significant increase in stamp duty costs compared to the temporary higher thresholds that were in place from September 2022 to March 2025. See our guide on the April 2025 changes for full details. Here's a detailed impact analysis for common property prices:
£300,000 Purchase
Before April 2025: £2,500
Current (2026): £5,000
Extra cost: £2,500 (+100%)
£500,000 Purchase
Before April 2025: £12,500
Current (2026): £15,000
Extra cost: £2,500 (+20%)
The impact is particularly severe for properties priced between £125,001 and £250,000. Previously paying zero stamp duty, these buyers now face bills of up to £2,500. This £2,500 threshold represents a significant additional upfront cost that must be factored into affordability calculations.
| Property Price | Old SDLT | New SDLT | Extra Cost |
|---|---|---|---|
| £250,000 | £0 | £2,500 | +£2,500 |
| £350,000 | £5,000 | £7,500 | +£2,500 |
| £500,000 | £12,500 | £15,000 | +£2,500 |
| £750,000 | £25,000 | £27,500 | +£2,500 |
Notice that standard residential buyers see a consistent £2,500 increase across most price points. This reflects the £125,000 reduction in the nil-rate band, with 2% charged on that additional £125,000 portion. Review our complete current 2026 rates guide for all scenarios.
Before and After April 2025
The April 2025 changes reversed temporary threshold increases and added a permanent surcharge increase. These are not temporary changes. They represent the new permanent rate structure for UK stamp duty. See our pre vs post April 2025 comparison for a side-by-side breakdown of every change.
| Feature | Before April 2025 | Current (2026) | Change |
|---|---|---|---|
| Standard nil-rate | £250,000 | £125,000 | -£125,000 |
| FTB nil-rate | £425,000 | £300,000 | -£125,000 |
| FTB max property | £625,000 | £500,000 | -£125,000 |
| Additional surcharge | 3% | 5% | +2% |
| Non-resident surcharge | 2% | 2% | No change |
| Corporate rate (>£500k) | 15% | 17% | +2% |
Before and After Comparison Table
This comprehensive table shows exactly how rates changed across different buyer types and property prices:
| Price | Buyer Type | Before | After | Change |
|---|---|---|---|---|
| £250,000 | Standard | £0 | £2,500 | +£2,500 |
| £350,000 | Standard | £5,000 | £7,500 | +£2,500 |
| £500,000 | Standard | £12,500 | £15,000 | +£2,500 |
| £750,000 | Standard | £25,000 | £27,500 | +£2,500 |
| £1,000,000 | Standard | £38,750 | £41,250 | +£2,500 |
The consistent £2,500 increase for standard buyers reflects the £125,000 reduction in the nil-rate band. For first-time buyers and additional property buyers, the impact varies significantly by price point.
Impact on First-Time Buyers
First-time buyers face higher costs under the current rates. Example: A first-time buyer purchasing at £400,000 now pays £5,000 in SDLT, compared to £0 before April 2025. At £300,000, FTBs still pay nothing. The £500,000 cap (previously £625,000) means FTBs buying above £500,000 get no relief at all.
Worked Examples
| Price | FTB SDLT (Before Apr 2025) | FTB SDLT (Current) | Increase |
|---|---|---|---|
| £300,000 | £0 | £0 | £0 |
| £400,000 | £0 | £5,000 | +£5,000 |
| £500,000 | £3,750 | £10,000 | +£6,250 |
Impact on Buy-to-Let Investors
The increase in the additional property surcharge from 3% to 5% significantly affects buy-to-let investors and second home buyers. This is a flat 5% added to each rate band, making entry into the rental market considerably more expensive.
Example: £300,000 Buy-to-Let Property
Standard SDLT calculation:
- 0% on £125,000 = £0
- 2% on £125,000 (£125,001-£250,000) = £2,500
- 5% on £50,000 (£250,001-£300,000) = £2,500
- Standard SDLT subtotal = £5,000
Add 5% surcharge on full £300,000:
Total: £5,000 + £15,000 = £20,000
Before April 2025: £5,000 + £9,000 (3% surcharge) = £14,000
Extra cost: £6,000 (+43%)
The surcharge increase alone adds significant upfront costs. For a £300,000 BTL purchase, buyers now pay £20,000 total versus £14,000 under the old rates. For a £500,000 BTL property, the total is £40,000 (£15,000 standard + £25,000 surcharge), compared to £27,500 under the old system, an extra £12,500.
| Property Price | Old BTL SDLT | New BTL SDLT | Extra Cost |
|---|---|---|---|
| £200,000 | £6,000 | £11,500 | +£5,500 |
| £300,000 | £14,000 | £20,000 | +£6,000 |
| £500,000 | £27,500 | £40,000 | +£12,500 |
The combined effect of the reduced nil-rate band and increased surcharge makes buy-to-let investment significantly more expensive, particularly affecting landlords expanding their portfolios or entering the market for the first time.
Market Reaction and Expert Commentary
The April 2025 rate changes had a measurable impact on the UK property market, with several observable trends:
Rush to Complete Before Deadline
Property transactions surged in March 2025 as buyers rushed to complete purchases before the 1 April deadline. Many solicitors reported working extended hours to ensure completions qualified for the old rates, particularly for properties in the £250,000-£500,000 range where savings were most significant.
Post-April Market Slowdown
Transaction volumes fell sharply in April and May 2025 as the higher rates took effect. Industry data showed a 15-20% reduction in agreed sales for properties between £200,000 and £500,000, with buyers pausing to reassess affordability with the higher upfront costs factored in.
First-Time Buyer Squeeze
First-time buyer activity was particularly affected. The reduction in FTB relief from £425,000 to £300,000 meant many buyers in higher-cost regions (particularly London and the South East) lost access to relief entirely. Mortgage brokers reported increased difficulty in helping FTBs secure affordable finance when factoring in the additional stamp duty costs.
Buy-to-Let Investment Decline
The 5% surcharge significantly dampened buy-to-let investment. Combined with other tax changes (Section 24 mortgage interest restrictions, higher capital gains tax), the increased stamp duty made portfolio expansion economically challenging for many landlords. Some landlords reported selling properties rather than expanding their portfolios.
Industry experts remain divided on the long-term impact. Some argue the higher rates will permanently suppress transaction volumes, while others believe the market will adapt as buyers adjust to the new cost structure. The government maintains the rates are necessary to stabilize public finances after the COVID-era temporary relief.
Reform Proposals Under Discussion
Several reform proposals remain under discussion, though none have been legislated:
- Annual value-based property levy to replace or supplement SDLT
- Regional variation in rates to reflect different housing markets
- Inflation-linking of rate bands so thresholds rise with house prices
- Abolition of stamp duty entirely, funded by higher council tax or a land value tax
The government has not committed to any of these proposals and no changes are expected before 2027 at the earliest.
Frequently Asked Questions About 2026 Stamp Duty Rate Confirmation
Did stamp duty go up in 2026?
No, stamp duty rates did not change in 2026. The rates currently in effect are those that came into force on 1 April 2025, when the nil-rate band reduced from £250,000 to £125,000, the FTB threshold dropped from £425,000 to £300,000, and the additional property surcharge increased from 3% to 5%. No further changes have been announced for 2026.
How much more stamp duty do I pay now?
Standard residential buyers typically pay £2,500 more than under the old rates due to the £125,000 reduction in the nil-rate band. First-time buyers purchasing at £400,000 now pay £5,000 instead of £0 (an increase of £5,000). Buy-to-let investors face significantly higher costs: a £300,000 BTL property now costs £20,000 in SDLT versus £14,000 under the old rates.
Will stamp duty rates change again?
The government has not announced any further stamp duty changes. The current rates are permanent, not temporary. While various reform proposals remain under discussion (including inflation-linking of thresholds and regional variation), no changes are expected before 2027 at the earliest. Any future changes would require new legislation announced in a Budget.
How do 2026 rates compare to 2024?
Current 2026 rates are identical to those in effect from April 2025 onwards. Compared to 2024 rates (which included temporary higher thresholds), buyers now pay more: the standard nil-rate band dropped from £250,000 to £125,000, FTB relief threshold from £425,000 to £300,000, and the additional property surcharge increased from 3% to 5%. These changes represent the end of COVID-era temporary relief.
What is the stamp duty holiday?
The "stamp duty holiday" was a temporary nil-rate band increase introduced in July 2020 during COVID-19. It raised the threshold to £500,000 (June 2020-June 2021), then tapered to £250,000 (June 2021-September 2022). That temporary relief ended on 1 April 2025 when rates reverted to pre-COVID levels. There is no current stamp duty holiday. The April 2025 changes were a return to normal, not the introduction of new relief.
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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.