Stamp Duty on Buy-to-Let: The Complete 2026 Guide

Buying a buy-to-let property means paying Stamp Duty Land Tax (SDLT) at the standard residential rates plus an additional 3% surcharge on each band. This guide covers every rate, how they stack, and the limited circumstances where you might not pay the surcharge.

Standard SDLT rates + 3% surcharge (2026/27)

When you buy an additional residential property (which includes any buy-to-let), you pay:

• Up to £250,000: 3% (standard 0% + 3% surcharge)
• £250,001 - £925,000: 8% (standard 5% + 3%)
• £925,001 - £1,500,000: 13% (standard 10% + 3%)
• Over £1,500,000: 15% (standard 12% + 3%)

Worked example: £200,000 buy-to-let

• First £250,000 at 3% = £6,000
• Total SDLT = £6,000

Without the surcharge, you'd pay £0 (as the standard nil band covers up to £250,000). The 3% surcharge effectively creates a minimum tax on every buy-to-let purchase.

Worked example: £350,000 buy-to-let

• First £250,000 at 3% = £7,500
• Next £100,000 at 8% = £8,000
• Total SDLT = £15,500

When the surcharge doesn't apply

The 3% surcharge does not apply if:

• You're buying your only residential property (not buy-to-let — you intend to live in it)
• You're replacing your main residence (sold the old one within 36 months)
• The property costs less than £40,000
• You're buying via a company and the property costs over £500,000 (different rules — 15% flat rate may apply)

Buying through a limited company

If you buy via a Ltd company, the 3% surcharge always applies (companies can't have a "main residence"). For properties over £500,000, a flat 15% rate may apply instead — though ATED relief usually means the 3% surcharge rates are used in practice for genuine rental businesses.

Scotland and Wales

SDLT only applies in England and Northern Ireland. Scotland has LBTT (Land and Buildings Transaction Tax) with its own additional dwelling supplement of 6%. Wales has LTT (Land Transaction Tax) with a 4% higher rates surcharge. Both have different band structures.

Can I claim SDLT back?

You can reclaim the 3% surcharge if you sell your previous main residence within 36 months of buying a new one. This doesn't apply to buy-to-let purchases — it's specifically for main residence replacement.

SDLT is not an allowable expense

You cannot deduct SDLT from your rental income for tax purposes. It is, however, added to your property's base cost for Capital Gains Tax purposes — reducing your CGT bill when you eventually sell.

Use our calculator

Work out exactly how much SDLT you'll pay with our stamp duty calculator — it includes the 3% surcharge automatically for buy-to-let purchases.