Do first-time buyers pay stamp duty in 2026?
Published 1 June 2026 · 4 min read · By Evren Ergin
First-time buyers in England and Northern Ireland pay no stamp duty on the first £300,000 of a home priced up to £500,000, and 5% on any part of the price between £300,001 and £500,000. Buy for more than £500,000 and the first-time buyer discount disappears, so you pay the standard rates that apply to everyone else.
TL;DR
- •First-time buyers pay 0% stamp duty up to £300,000 on any home costing £500,000 or less.
- •On a home priced between £300,001 and £500,000, you pay 5% on the slice above £300,000 and nothing below it.
- •If the price is above £500,000, first-time buyer relief is lost entirely and you pay the same rates as everyone else.
- •Stamp duty is a tax on buying property, not on selling, so it never reduces what a seller receives.
Stamp duty is one of the largest upfront costs of buying a home, and the rules for first-time buyers changed in April 2025. This is how they work in 2026, with worked examples.
What is stamp duty?
Stamp Duty Land Tax, usually shortened to stamp duty, is a tax you pay when you buy a home in England or Northern Ireland above a certain price. It is charged in bands, which means you pay a different rate on each slice of the price rather than one rate on the whole amount. Scotland and Wales run their own separate systems.
Do first-time buyers pay stamp duty in 2026?
Often not. A first-time buyer pays no stamp duty on the first £300,000 of a home, as long as the total price is £500,000 or less. So a first-time buyer purchasing at or below £300,000 pays nothing at all.
Who counts as a first-time buyer?
You count as a first-time buyer if you, and anyone you are buying with, have never owned a home anywhere in the world, whether bought or inherited. Everyone named on the purchase must qualify for the relief to apply.
What happens if my first home costs more than £500,000?
Above £500,000, first-time buyer relief is removed completely. You do not get a partial discount. You pay the standard rates that apply to all buyers, starting at the £125,000 threshold.
Do first-time buyers pay stamp duty in Scotland and Wales?
Scotland and Wales have their own property purchase taxes with different thresholds and their own first-time buyer rules, so the figures on this page apply to England and Northern Ireland only. Check the relevant Scottish or Welsh guidance if you are buying there.
How much stamp duty does a first-time buyer pay?
First-time buyer relief sets the bands below. The rate applies only to the part of the price inside each band.
First-time buyer stamp duty bands, England and Northern Ireland (2026)
| Portion of the price | First-time buyer rate |
|---|---|
| Up to £300,000 | 0% |
| £300,001 to £500,000 | 5% |
| Whole price above £500,000 | Relief lost: standard rates apply |
What does that look like in pounds?
Worked examples of first-time buyer stamp duty (2026)
| Purchase price | Stamp duty as a first-time buyer |
|---|---|
| £250,000 | £0 |
| £300,000 | £0 |
| £425,000 | £6,250 |
| £500,000 | £10,000 |
| £550,000 (relief lost) | £17,500 |
Take the £425,000 example. You pay nothing on the first £300,000, then 5% on the remaining £125,000, which is £6,250. At £550,000 the relief is gone, so you pay the standard rates: nothing up to £125,000, 2% on the next £125,000, and 5% on the rest, which totals £17,500.
When do you pay it?
Stamp duty is due within 14 days of completion, the day the home legally becomes yours. In practice your solicitor or conveyancer files the return and pays it on your behalf, then bills you, so it is one of the costs you need ready as cash rather than something you can add to the mortgage.
The £500,000 cliff edge catches more first-time buyers than the rates themselves do.
Knowing your true upfront costs before you commit is part of buying well. ValuQ gives UK homeowners free, side-by-side property valuations from competing local estate agents, and it is free for buyers and sellers alike.
Sources
- [1]GOV.UK - Stamp Duty Land Tax: residential property rates · 2025-04-01 · https://www.gov.uk/stamp-duty-land-tax/residential-property-rates
- [2]GOV.UK - Stamp Duty Land Tax (how much you pay) · 2025-04-01 · https://www.gov.uk/stamp-duty-land-tax
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