Buy-to-Let Stamp Duty 2026 - Rates, Calculator & Tax Guide
Standard rates plus 5% surcharge. Company buyer rates, yield impact, and MDR abolition explained.
Buy-to-let stamp duty = standard rates + 5% surcharge on all bands. If you are a non-UK resident buying BTL, it is standard + 5% + 2% = 7% extra on every band.
Buy-to-Let Calculator
Buy-to-Let SDLT Rates 2026
| Band | Standard buyer | BTL / additional property | BTL + non-resident |
|---|---|---|---|
| £0 - £125,000 | 0% | 5% | 7% |
| £125,001 - £250,000 | 2% | 7% | 9% |
| £250,001 - £925,000 | 5% | 10% | 12% |
| £925,001 - £1,500,000 | 10% | 15% | 17% |
| Over £1,500,000 | 12% | 17% | 19% |
Stamp Duty vs Rental Yield
How many months of rent does the stamp duty cost? Based on average UK rental yield of approximately 5% per year (gross).
| Property price | Stamp duty (BTL) | Monthly rent (5% yield) | Months of rent to recoup |
|---|---|---|---|
| £200,000 | £11,500 | £833/mo | ~14 months |
| £250,000 | £15,000 | £1,042/mo | ~14 months |
| £300,000 | £20,000 | £1,250/mo | ~16 months |
| £400,000 | £30,000 | £1,667/mo | ~18 months |
| £500,000 | £42,500 | £2,083/mo | ~20 months |
Gross yield only. This does not account for income tax on rental income, mortgage interest, maintenance costs, or voids. The real payback period will be longer on a net basis.
Buying Through a Company
Purchasing through a limited company still incurs the 5% additional property surcharge. Standard SDLT rates + 5% apply regardless of whether it is a personal or corporate purchase, as long as the property is under £500,000.
Companies buying residential property over £500,000 pay a flat 17% SDLT rate (the “15% enveloping rate” plus standard bands). Additionally, Annual Tax on Enveloped Dwellings (ATED) applies each year. At £1m+, ATED can exceed £10,000 per year.
Multiple Dwellings Relief: Abolished June 2024
Multiple Dwellings Relief (MDR) was abolished on 1 June 2024. Previously, when buying multiple residential properties in a single transaction (for example, a portfolio of 3 flats), landlords could average the SDLT across all units. This often reduced the effective rate significantly.
After June 2024, each property must be assessed at its individual value for SDLT purposes. Portfolio landlords buying multiple units simultaneously will pay a higher total SDLT. This is a material change for investors and has increased the upfront cost of portfolio acquisitions.
FAQs
Do you pay stamp duty on a buy-to-let in 2026?
Yes. All buy-to-let purchases pay standard SDLT rates plus the 5% additional property surcharge on every band. On a £200,000 BTL, stamp duty is £11,500. On a £300,000 BTL, it is £20,000. Use the calculator above for an exact figure at your purchase price.
What happened to Multiple Dwellings Relief for landlords?
MDR was abolished on 1 June 2024. Portfolio landlords can no longer average stamp duty rates across multiple properties purchased in one transaction. Each unit is now taxed at its individual rate including the full 5% surcharge. This increased stamp duty costs significantly for anyone buying multiple units in a block purchase.
Is stamp duty on buy-to-let the same in Scotland and Wales?
No. Scotland charges the Additional Dwelling Supplement (ADS) of 8% on the full purchase price (not marginal). This makes additional properties significantly more expensive in Scotland. On a £300,000 BTL in Scotland, ADS alone adds £24,000. Wales has a new banded higher rate structure from December 2024 with rates starting at 5% on the full price for additional properties. See our Scotland guide for LBTT details.