How much stamp duty do you pay on a buy-to-let?

In England and Northern Ireland in 2026, a buy-to-let is almost always an additional property, so it pays a 5% surcharge on top of standard SDLT rates in every band. On a £200,000 purchase that is about £11,500, compared with £1,500 for a standard purchase.

Does the stamp duty surcharge apply to limited companies?

Yes. Companies pay the 5% additional-property surcharge on residential purchases, and there is no first-time buyer relief for a company.

When does the 5% surcharge apply?

The surcharge applies when you buy an additional residential property for £40,000 or more and are not replacing your only or main residence. It is charged on the whole price, band by band, on top of the standard rates.

Home · Guides · Stamp duty

Stamp duty on a buy-to-let or second home in 2026

StackCheck · August 2026 · 6 minute read

Stamp duty is the cost first-time landlords underestimate most, and it comes straight out of your day-one cash — not the mortgage. On a buy-to-let you almost always pay a surcharge that a normal home-mover never sees. Here's exactly how it's worked out in England and Northern Ireland in 2026, with the numbers spelled out.

England & NI only. Scotland uses LBTT and Wales uses LTT, with different bands and surcharges. Don't use these figures there.

The 5% additional-property surcharge

If you're buying a residential property that isn't replacing your only or main home — which covers virtually every buy-to-let and second home — you pay the standard SDLT rates plus 5% on every band. It applies once the price is £40,000 or more, and it's charged on the whole price, not just the slice above a threshold.

The 2026 rates, band by band

Portion of price	Standard	Additional property
Up to £125,000	0%	5%
£125,001–£250,000	2%	7%
£250,001–£925,000	5%	10%
£925,001–£1.5m	10%	15%
Above £1.5m	12%	17%

You pay each rate only on the portion of the price that falls in that band — then add it all up.

A worked example: £200,000 buy-to-let

Band	Slice	Rate	SDLT
Up to £125,000	£125,000	5%	£6,250
£125,001–£200,000	£75,000	7%	£5,250
Total			£11,500

A home-mover buying the same £200,000 house pays just £1,500. The landlord pays £11,500 — £10,000 more, entirely because of the surcharge. That's £10,000 of deposit-equivalent cash that earns you nothing and never comes back.

Why it matters for the deal: SDLT is part of your total cash in, so it drags your cash-on-cash return down. A deal that looks like a 7% return on the deposit alone can be nearer 5% once the stamp duty is counted properly.

The exceptions worth knowing

Limited companies pay the 5% surcharge too, and get no first-time buyer relief. Buying through a company is a tax-position decision (see Section 24), not a stamp duty saving.
First-time buyers get relief on a home they'll live in (0% to £300,000, then 5% to £500,000, no relief above £500,000) — but this doesn't apply to a buy-to-let.
Replacing your main home avoids the surcharge, and if you've paid it because your old home hadn't sold yet, you can usually reclaim it if you sell within the allowed window.
Six or more dwellings in one transaction can be treated as non-residential — relevant for larger deals, worth an accountant's eye.

Rates change at Budgets. SDLT thresholds and the surcharge have moved several times in recent years. Always confirm with HMRC's calculator before you exchange, and treat any tool's figure — including ours — as an estimate.

Factor it in before you offer

Because stamp duty is fixed by the price and buyer type, it's one of the few numbers you can nail down exactly up front. The StackCheck analyser calculates it band by band at additional-property rates automatically, and folds it into your total cash in and cash-on-cash return — so the return you see is the one after the taxman's cut, not before.

See the real stamp duty and cash-on-cash on your next deal in seconds.

Run your numbers free →

General information, not tax or legal advice, and simplified. SDLT has edge cases (mixed-use, multiple dwellings relief, reclaims) and the rates change. Verify with HMRC's SDLT calculator and a conveyancer before exchange.