Since April 2016, private landlords pay higher stamp duty rates, plus an additional levy. The following table and calculator show the total amount payable. The following table and calculator show the total amount payable. Properties valued at £40,000 or less do not attract the surcharge. Once over this limit, the 5% additional tax applies.
Updated 30th September 2026 with current tax rates. Properties over the £40,000 threshold pay the full 5% on the entire band from £0. See example rates below.
| Rate | Property Price |
|---|---|
| 0% | Up to £40,000 |
| 5% (*) | From £40,001 to £125,000 |
| 7% | From £125,001 to £250,000 |
| 10% | From £250,001 to £925,000 |
| 15% | From £925,001 to £1,500,000 |
| 17% | Over £1,500,000 |
Source: HMRC (*) if the property value is over £40,000 then the 5% rate applies to the entire portion.
The percentages apply only to the amount between the thresholds. If you purchase a second home and sell your main residence within three years, you can claim the additional tax back.
Enter your property value to calculate the total duty payable.
| Property Price | Tax Payable |
|---|---|
| £25,000 | £0 |
| £70,000 | £3,500 |
| £175,000 | £9,750 |
| £250,000 | £15,000 |
| £350,000 | £25,000 |
| £500,000 | £40,000 |
| £750,000 | £65,000 |
| £1,250,000 | £131,250 |
Source: StampDutyRates.co.uk Buy to Let Calculator
The second-home surcharge started at 3% in April 2016, but Chancellor Rachel Reeves increased that to 5% in the Autumn Budget 2024.
Another change for buy-to-let investors is that from April 2019, they have to pay any Capital Gains Tax (CGT) within 60 days of selling a property. Currently, any CGT due gets paid at the end of the current tax year. The current rates are 18% for basic taxpayers rising to 24% for higher or additional rate taxpayers.
You can reduce the income tax payable on these types of investment by claiming for certain allowable expenses. Examples of these include furnishings, repairs, and letting management fees.