Mortgage Calculators
First-Time Buyer Stamp Duty Calculator
First-time buyer relief is worth thousands, but it disappears entirely at a threshold rather than tapering. See exactly where you stand.
- Stamp duty with first-time buyer relief
- The standard rate for comparison
- What the relief is actually worth
- The cliff edge at 500,000
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| Portion of price | Rate | Tax |
|---|
England and Northern Ireland only. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, both at different rates. This covers freehold purchases; new leases, shared ownership and linked transactions are worked out differently. This is an estimate based on typical lender criteria and current rates. It is not advice, a recommendation, or an offer of credit. What you can actually borrow depends on your circumstances and the lender's own assessment.
How first-time buyer relief works
First-time buyer relief means you pay nothing on the first £300,000 and five per cent on the portion between £300,000 and £500,000. At a £425,000 purchase that is £6,250 rather than the £11,250 a standard buyer would pay.
The relief does not taper. Buy for £500,000 and you get it. Buy for £500,001 and you lose it entirely, paying standard rates on the whole purchase. That single pound costs roughly £5,000, which makes negotiating just under the threshold unusually valuable.
To qualify, every buyer on the application must be a first-time buyer, and the property must be your only or main residence. If one of two joint buyers has owned property before, anywhere in the world, the relief is not available on that purchase.
| Portion of the price | Rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Above £500,000 | No relief — standard rates apply |
Source: GOV.UK stamp duty rates. Correct as at 15 August 2026. Rates apply in England and Northern Ireland only and can change without notice.
The £500,000 cliff edge, in numbers
A first-time buyer purchasing at £500,000 pays nothing on the first £300,000 and five per cent on the next £200,000, which is £10,000. Buy at £500,001 and the relief is lost entirely: standard rates apply to the whole purchase, producing £15,000. One extra pound of purchase price costs £5,000 in tax.
That makes the £500,000 line one of the very few places in a property transaction where a small negotiation has an outsized effect. If you are being asked for £505,000, the £5,000 you are trying to save on price is worth £5,000 of tax as well, so the real gap between the two positions is £10,000, not £5,000. It is worth saying that out loud to the agent.
Below £300,000 a first-time buyer pays nothing at all. Between £300,000 and £500,000 the tax rises gradually rather than in a jump, so there is no similar cliff at the lower threshold.
Who counts, and what else to know
The test is stricter than most people expect. You must never have owned a freehold or leasehold interest in a residential property anywhere in the world, and that includes property acquired by inheritance or as a gift, and includes a share of a property rather than the whole of one. On a joint purchase every buyer has to pass the test; one buyer failing it removes the relief from the entire transaction.
These are the England and Northern Ireland rates. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, each with its own thresholds and its own treatment of first-time buyers, so a calculator built for England will give the wrong answer for a purchase in Edinburgh or Cardiff.
The tax is due within 14 days of completion and cannot be added to the mortgage. In practice your conveyancer submits the return and pays it from funds you provide beforehand, so it needs to be available as cash. Rates and reliefs are set by government and change; check the current position on GOV.UK before you rely on any figure.
Where to go next
Independent sources
- GOV.UK: SDLT residential rates — The official rates and first-time buyer relief
- HMRC stamp duty calculator — HMRC’s own calculator, for a definitive figure
Plan the Full Cost of Your First Purchase
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Read More Before You Buy
First-time buyer relief has a cliff edge. These pages cover that and the rest of the costs.
Stamp Duty Explained
Current rates, first-time buyer relief and the surcharges that catch people out.
How Much Deposit Do You Need?
What each deposit size actually reaches, and what staying small costs you.
First-Time Buyer Advice
Putting the deposit, the borrowing and the timing together for a first home.
Buying a Home in 2026
Every stage from agreement in principle to the day you get the keys.
Check your first-time buyer relief
Relief disappears at a threshold rather than tapering. Send us your purchase price and we will confirm exactly where you stand.
Frequently Asked Questions – First-Time Buyer Stamp Duty Calculator
How much stamp duty does a first-time buyer pay?
Nothing on the first £300,000, then five per cent on the portion between £300,000 and £500,000. Above £500,000 the relief is lost completely and standard rates apply to the whole purchase.
What counts as a first-time buyer for stamp duty?
Someone who has never owned a freehold or leasehold interest in a residential property, anywhere in the world, including by inheritance or gift. On a joint purchase every buyer must meet that test.
What happens if I buy for more than 500,000?
You lose the relief entirely rather than partially. A purchase at £500,001 is taxed at standard rates on the whole amount, which is roughly £5,000 more than at £500,000. It is one of the few places where a single pound genuinely matters.
Does this apply across the whole UK?
No. These are the England and Northern Ireland rates. Scotland charges Land and Buildings Transaction Tax and Wales charges Land Transaction Tax, both with different thresholds and their own first-time buyer treatment.
When do I have to pay stamp duty?
Within 14 days of completion. In practice your conveyancer normally submits the return and pays it on your behalf from funds you provide before completion, so it needs to be available as cash rather than added to the mortgage.
Can I add stamp duty to my mortgage?
Not directly. You can borrow more against the property and use your own savings for the tax, but that increases the loan and the loan to value, which can move you into a more expensive band. Most buyers budget for it separately.