Buy to let stamp duty calculator
Buy to let stamp duty calculator
Stamp duty on an additional property — a buy-to-let, a second home or a purchase completed before your existing home sells — carries a 5% surcharge on every band. Rates in force from 1 April 2025 for England and Northern Ireland.
Stamp duty due
£65,000
Effective rate 8.67% of £750,000, including the 5% additional property surcharge.
| Band | Rate | Tax |
|---|---|---|
| Up to £125,000 | 5% | £6,250 |
| £125,000 to £250,000 | 7% | £8,750 |
| £250,000 to £925,000 | 10% | £50,000 |
Yield after stamp duty
2.76%
- Annual rent
- £31,200
- Gross yield
- 4.16%
- Net yield after running costs
- 3.63%
- Stamp duty spread over 10 years
- −£6,500 a year
- Net income after amortised SDLT
- £20,700
For a fuller breakdown of income and costs, use the rental yield calculator.
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Step 1 of 2Indicative only. This is not financial advice, a mortgage offer or a tax computation. Confirm the figures with a qualified broker, solicitor or tax adviser before you commit.
Questions we get asked
- How much stamp duty do you pay on a buy-to-let?
- A buy-to-let or second home pays the standard SDLT bands plus a 5% additional property surcharge on every band, on purchases of £40,000 or more. A non-UK resident pays a further 2% on top of that.
- Can a buy-to-let purchase qualify for first-time buyer relief?
- No. First-time buyer relief only applies where the property will be your only residential property and you intend to live in it, so it is never available on an investment purchase.
- Does the surcharge apply if I buy through a limited company?
- Yes. A company buying residential property pays the additional property surcharge from the first pound, and purchases above £500,000 can fall into the 17% flat rate unless a relief such as property rental business relief applies.
- Should stamp duty change how I judge the yield?
- It should. Stamp duty is a day-one cost that never comes back until sale. Spreading it across your intended holding period, as this calculator does, shows the real annual drag on the income the property produces.