Stamp duty on buy to let property: what do landlords pay in 2026?

Stamp duty on a buy to let property in England and Northern Ireland is charged at the standard residential rates plus a 5% surcharge on the whole purchase price. That means a landlord buying a £250,000 rental property will usually pay £15,000 in stamp duty, compared with £2,500 for someone buying the same property as their only home. The surcharge usually applies when a purchase leaves you owning more than one home worth £40,000 or more, and it applies to every residential purchase of £40,000 or more made through a limited company. This guide covers the current buy to let stamp duty rates, how to calculate your bill, when the higher rates apply and when they don't, the rules for limited companies and non UK residents, what you pay in Scotland and Wales, and how to budget for the tax alongside your buy to let mortgage.

How much is stamp duty on a buy to let property?

Stamp Duty Land Tax (SDLT) on a buy to let is worked out in bands, with each slice of the price taxed at its own rate. Because the 5% surcharge is added to every band, landlords pay tax from the first pound of the price, even on cheaper properties where a home buyer would pay nothing at all.

These are the higher rates published by HMRC, which have applied since 31 October 2024, when the surcharge rose from 3% to 5%.

The surcharge only applies to residential property worth £40,000 or more. Below that figure, no higher rates are due, and the standard nil rate band means there is no stamp duty to pay either.

How to calculate stamp duty on a buy to let

To calculate your bill, apply each buy to let rate to the part of the price that falls within that band, then add the amounts together. For a £300,000 buy to let property, the calculation looks like this:

• The first £125,000 is taxed at 5%, which comes to £6,250.

• The next £125,000, from £125,001 to £250,000, is taxed at 7%, which comes to £8,750.

• The final £50,000, above £250,000, is taxed at 10%, which comes to £5,000.

• The total stamp duty payable is £20,000.

The table below shows the bill at common buy to let price points, next to what a buyer of the same property as their only home would pay.

The extra cost is always 5% of the purchase price, which makes it a quick way to sense check your figures. These amounts apply to individual landlords buying in England or Northern Ireland. Your solicitor or conveyancer will confirm the final figure, and you can also check it with HMRC's stamp duty calculator.

When do you pay the higher rates on a buy to let?

You pay the higher rates if, at the end of the day of your purchase, you will own more than one residential property worth £40,000 or more. HMRC counts property you own or part own anywhere in the world, so a flat abroad or a share in an inherited home can be enough to trigger the surcharge. A few rules are worth knowing before you buy:

• If you buy with someone else and any one of you would have to pay the higher rates, the higher rates apply to the whole purchase.

• If you are married or in a civil partnership and buy in your sole name, property your spouse or partner owns is counted as well, unless you are permanently separated.

There is one situation where a buy to let can be bought at standard rates. If you buy as an individual and the rental property will be the only residential property you own, there is no surcharge, because you won't own more than one. You can't claim first time buyer relief on a buy to let, though, because that relief requires you to intend to live in the property as your main home.

How much stamp duty do you pay on a buy to let bought through a limited company?

Companies buying residential property pay the higher rates on every purchase, so the 5% surcharge applies from the first property onwards. Some landlords choose to buy through a company for income tax or succession reasons, but stamp duty won't be any lower this way.

For homes costing more than £500,000, a company can face a flat 17% rate on the full price, which rose from 15% on 31 October 2024. A company can claim relief from this rate if the property is used in a property rental business run on a commercial basis with a view to profit. When the relief applies, the company pays the standard higher rates instead. On a £600,000 property, that is the difference between £102,000 at the flat rate and £50,000 at the higher rates.

The relief can be withdrawn if, within three years of the purchase, the property stops being used for a qualifying purpose or someone connected to the company, such as a person who controls it or a member of their family, is allowed to live in it. This applies even if they pay a market rent, so it is worth getting tax advice before you commit.

If you already own a rental property personally and want to move it into your own limited company, stamp duty is charged as if the company paid the full market value, even if no money changes hands. The higher rates normally apply too, so incorporating an existing portfolio can carry a significant tax bill.

Do non UK residents pay more stamp duty on a buy to let?

Non UK residents buying residential property in England or Northern Ireland pay a further 2% surcharge on top of all other residential rates. For an overseas landlord who also pays the higher rates, that means a combined surcharge of 7%. You are treated as non UK resident for this purpose if you were not present in the UK for at least 183 days during the 12 months before the purchase. If you go on to spend at least 183 days in the UK during any continuous 365 day period within the two year window HMRC sets around the purchase, you can claim the 2% back. The non resident surcharge does not apply in Scotland or Wales.

Buying several properties or a mixed use building

In England and Northern Ireland, multiple dwellings relief, which used to reduce stamp duty when buying more than one home in a single transaction, was abolished for purchases completing on or after 1 June 2024. Landlords buying a small portfolio or a block of flats there now pay stamp duty on the total price at the residential rates, including the surcharge. There is an important exception for larger purchases. If you buy six or more dwellings in a single transaction, the non residential rates apply instead of the residential rates and the surcharge. Those rates top out at 5%, so the bill is often much lower than it would be at buy to let rates.

Mixed use property, such as a shop with a flat above it, is also taxed at non residential rates, and the 5% surcharge does not apply. Our guide to stamp duty on commercial property explains how those rates work and how to calculate them.

Stamp duty on buy to let property in Scotland and Wales

Stamp duty only applies in England and Northern Ireland. Scotland and Wales have their own property taxes, and each charges more for additional homes.

In Scotland, you pay Land and Buildings Transaction Tax plus an Additional Dwelling Supplement of 8% of the full price, so a £200,000 buy to let costs £17,100. Companies pay the supplement on every residential purchase of £40,000 or more.

In Wales, buy to let purchases are taxed under Land Transaction Tax at separate higher residential rates of 5% to 17%, so a £200,000 property costs £10,700. Landlords who lease a property bought for £400,000 or less to a Welsh council through Leasing Scheme Wales for 5 to 20 years can claim back the difference between the higher and main rates.

When is stamp duty paid and can you add it to a buy to let mortgage?

Your SDLT return must be sent to HMRC and the tax paid within 14 days of completion. In most cases your solicitor or conveyancer handles both on the day you complete and adds the amount to their bill, and HMRC can charge penalties and interest if the deadline is missed. Stamp duty is usually paid from your own funds rather than added to your buy to let mortgage. Lenders size the loan against the property's value and the expected rent, so the deposit, stamp duty, legal fees and any refurbishment costs all need to be in place separately. On a £250,000 purchase with a 25% deposit, for example, you would need £62,500 for the deposit and a further £15,000 for stamp duty before any other costs.

Timing matters if you are buying at auction, where completion is often due within weeks. A bridging loan can fund the purchase quickly while longer term buy to let finance is arranged.

Apply for a buy to let mortgage with Capitalise

Once you know your stamp duty bill, you can work out exactly how much you need to borrow and how much deposit to set aside. Our buy to let mortgage calculator shows your likely monthly repayments, and our guide to the best buy to let mortgage lenders compares what the main lenders offer. When you are ready, apply for a buy to let mortgage with Capitalise. Our funding specialists will compare offers from our panel of 130+ lenders, whether you're buying in your own name or through a limited company, and help you find finance that fits your property purchase.