England and Northern Ireland rates from 1 April 2025: 0% to £125,000, 2% to £250,000, 5% to £925,000, 10% to £1.5m, 12% above. First-time buyers pay 0% to £300,000 and 5% to £500,000, with no relief at all above £500,000 (standard rates apply to the full price). Additional properties carry a 5% surcharge on top of standard rates. Scotland (LBTT) and Wales (LTT) use different bands and aren't modeled here. Not tax advice.
How much stamp duty is due on a £500,000 house?
Under the April 2025 rates, a £500,000 purchase in England or Northern Ireland costs a home mover £15,000 in stamp duty, 3.00% of the price. On the same £500,000, a first-time buyer pays £10,000 after relief. As an additional property it costs £40,000, including £25,000 of 5% surcharge.
Stamp duty on £500,000 by buyer type
| Buyer type | Stamp duty | Effective rate | vs home mover |
|---|---|---|---|
| Home mover / standard | £15,000 | 3.00% | same |
| First-time buyer | £10,000 (relief applied) | 2.00% | -£5,000 |
| Additional property | £40,000 | 8.00% | +£25,000 |
How £500,000 is taxed, band by band
| Band | Slice of the price | Home mover | Additional property |
|---|---|---|---|
| Up to £125,000 | £125,000 | 0% = £0 | 5% = £6,250 |
| £125,001 to £250,000 | £125,000 | 2% = £2,500 | 7% = £8,750 |
| £250,001 to £925,000 | £250,000 | 5% = £12,500 | 10% = £25,000 |
| Total | £500,000 | £15,000 | £40,000 |
Of the £500,000 price, the first £125,000 is taxed at 0%, the next £125,000 at 2% (£2,500) and the remaining £250,000 at 5% (£12,500).
First-time buyer relief at £500,000
£10,000 is 5% of the £200,000 between £300,001 and £500,000; the first £300,000 is tax-free. The saving against a home mover is £5,000, available only if all buyers are first-time buyers moving in as their main home. This price is the ceiling itself, so any increase at all would cancel relief.
What changes around £500,000
- From £500,000 to £925,000, £425,000 of headroom, every £1,000 more adds £50 for a home mover; the 10% rate starts at £925,001.
- At £600,000 the home-mover bill would be £20,000, £5,000 more than at £500,000.
- At £450,000 the home-mover bill would be £12,500, so the £50,000 step up to £500,000 costs £2,500 in extra stamp duty.
£500,000 is the first-time buyer ceiling itself. At exactly this price relief still applies and the bill is £10,000; at £500,001 it vanishes and the bill jumps to £15,000, £5,000 more for one extra pound. Home movers pay £15,000 (3.00%), and an additional property costs £40,000, an effective 8.00%.
Frequently asked questions
£15,000 at standard rates (a home mover), £10,000 for a first-time buyer, and £40,000 for a second home or buy-to-let.
Yes, £10,000 - the first £300,000 is 0%, and 5% applies to the £300,001–£500,000 portion. That is £5,000 less than a home mover pays.
£25,000 extra: 5% of £500,000, added to the £15,000 standard bill for £40,000 in total.
At £510,000 a home mover would pay £15,500 (£500 more), a first-time buyer £15,500 (£5,500 more) and an additional-property buyer £41,000 (£1,000 more). The first-time buyer jump is larger because £510,000 is over the £500,000 relief ceiling.
Other property prices
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Reviewed by Raja Jahangir · Last reviewed: October 2026