Stamp duty can be one of the larger costs of buying a home, but first-time buyers get valuable relief that can save thousands of pounds. This guide explains whether first-time buyers pay stamp duty, how the relief works in 2026, who qualifies, and how much you might pay on homes at different prices.

What stamp duty is

Stamp duty land tax is a tax you pay when you buy a property over a certain price in England and Northern Ireland. It is worked out in bands, with different rates applying to different portions of the price, rather than a single rate on the whole amount. It is usually one of the bigger upfront costs of buying, so understanding what you will pay is an important part of budgeting, as our guide to the true cost of buying explains.

First-time buyer relief

First-time buyers benefit from relief that reduces or removes the stamp duty they pay. Since April 2025, a first-time buyer pays no stamp duty on a home costing up to £300,000, then 5% on the portion between £300,001 and £500,000. If the home costs more than £500,000, the first-time buyer relief does not apply at all, and you pay the standard rates on the whole price instead.

Who counts as a first-time buyer

To qualify for the relief, you must be buying your first home and never have owned a property before, anywhere in the world. If you are buying with someone else, everyone named on the purchase usually has to be a first-time buyer for the relief to apply. So if one buyer has owned a home before, the relief may be lost, which is an important point for couples and groups buying together.

How much you might pay

Some examples make it clear. On a £250,000 first home, a first-time buyer pays no stamp duty, while a non-first-time buyer would pay £2,500. On a £350,000 home, a first-time buyer pays £2,500 (5% of the £50,000 above £300,000). On a £400,000 home, they pay £5,000. On a £500,000 home, they pay £10,000. Above £500,000, the relief is lost entirely.

The standard rates

If you do not qualify for first-time buyer relief, or your home costs over £500,000, you pay the standard residential rates. Since April 2025, the standard nil-rate band is just £125,000, so most buyers pay something. Knowing whether you qualify for the relief, and the difference it makes, helps you budget accurately and understand why the price of your home affects your stamp duty so sharply around the thresholds.

Buying jointly

When buying jointly, the first-time buyer relief generally applies only if all the buyers are first-time buyers. This catches out couples where one partner has previously owned a home, as the whole purchase then loses the relief. If you are buying with someone, check both your situations, because it directly affects the stamp duty bill, as our guide to joint mortgages explains.

When and how you pay

Stamp duty must be paid within 14 days of completing your purchase. In practice, your solicitor or conveyancer usually handles the stamp duty return and payment on your behalf, using funds you provide, so you do not have to deal with HMRC directly. You do need to have the money ready, though, so include any stamp duty due in the funds you set aside for completion.

Scotland and Wales are different

Stamp duty land tax applies in England and Northern Ireland. Scotland has its own Land and Buildings Transaction Tax, and Wales has Land Transaction Tax, each with different thresholds and rules, including how first-time buyers are treated. If you are buying in Scotland or Wales, check the rules and rates that apply there rather than assuming the England figures, as the amount you pay can differ.

The surcharge on additional properties

If you are buying an additional property, such as a second home or a buy-to-let, on top of one you already own, a surcharge applies on top of the standard rates. This does not affect most first-time buyers buying their only home, but it is worth knowing the surcharge exists, as it significantly increases the stamp duty on additional properties and is a major cost for landlords and second-home buyers.

Why the thresholds changed

The current thresholds took effect on 1 April 2025, when a temporary, more generous regime ended. Before then, first-time buyers paid no stamp duty up to £425,000, with relief up to £625,000, and the standard nil-rate band was £250,000. These reverted to the lower figures, meaning more buyers now pay stamp duty, and pay more of it. Knowing the change happened explains why older guides may quote different, now out-of-date numbers.

Stamp duty and your overall budget

Because stamp duty must be paid around completion, it forms part of the cash you need upfront, alongside your deposit and fees. A first-time buyer purchase just over £300,000 suddenly attracts stamp duty, so a home priced near a threshold deserves careful budgeting. Factoring the exact stamp duty for your target price into your plans, rather than assuming first-time buyers pay nothing, keeps your finances on track.

When one buyer is not a first-time buyer

If you buy with someone who has owned a property before, the purchase generally loses first-time buyer relief entirely, so you pay the standard rates. This catches out couples where only one is a first-time buyer. It is worth understanding before you buy, as it can mean a larger stamp duty bill than expected, and it may influence how and with whom you choose to buy.

Stamp duty on shared ownership

Buying through shared ownership has its own stamp duty rules, and you can usually choose how to pay, either on the share you buy or on the full value. The choice has long-term implications. If you are buying a shared ownership home, as our guide to how shared ownership works explains, it is worth understanding how stamp duty applies, as it differs from a standard purchase.

Getting the timing and figures right

Because the return and payment are due within 14 days of completion, and your solicitor usually handles them, the main thing for you is to have the right amount ready. Work out your stamp duty early using your purchase price and first-time buyer status, and keep that money aside. Getting the figure right in advance means no last-minute surprise when completion arrives and the tax falls due.

Relief that is still worth thousands

Even after the thresholds reduced, first-time buyer relief remains valuable, often saving several thousand pounds compared with what other buyers pay on the same home. For a typical first home below £300,000, you pay no stamp duty at all, while a previous owner buying the same property would pay. So the relief is well worth claiming, and understanding it helps you see the genuine cost advantage of buying as a first-time buyer.

In short

First-time buyers in England and Northern Ireland pay no stamp duty up to £300,000, then 5% between £300,001 and £500,000, with no relief above £500,000. All buyers must be first-time buyers for the relief to apply. It is paid within 14 days of completion, usually by your solicitor. Scotland and Wales have their own systems. Budget for any stamp duty due as part of your buying costs.

Where to get help and next steps

Read our guides to the true cost of buying your first home, how much deposit you need, and 95% and low-deposit mortgages. This is general information, not tax, mortgage or financial advice.