Stamp duty on a £500,000 property: £15,000 (England, 2026)
A main-home buyer in England pays £15,000 stamp duty on a £500,000 purchase — an effective rate of 3.0%. Different rules apply for first-time buyers, additional property and non-UK residents.
£0
Effective rate: 0.00%
Indicative — final stamp duty depends on the exact completion date and HMRC's published rules at that date. Always confirm with your conveyancer. Figures based on rules in force April 2026.
The £500,000 line in English stamp duty
£500,000 sits in the third SDLT band (5%, £250,000–£925,000). The band structure means a main-home buyer in England pays:
- £0 on the first £125,000 (0%)
- £2,500 on the slice from £125,000 to £250,000 (2%)
- £12,500 on the slice from £250,000 to £500,000 (5%)
- Total: £15,000
Effective rate is 3.0% — but the marginal rate at £500,000 is 5%. Chip the price down £10,000 and you save £500 in stamp duty alone, on top of the cash saving.
£500,000 is the first-time buyer cliff
Most band cliffs are gentle — they only affect the next pound of tax. £500,000 in England is different. First-time buyer relief is withdrawn entirely above £500,000. A first-time buyer:
- At £500,000 exactly: pays £10,000 (0% to £300k, 5% on the next £200k)
- At £500,001: pays £15,000+ — the full main-home rate
That's a £5,000 cliff for £1 of price. If you're a first-time buyer near the threshold, negotiate to land at £500,000 or below.
What changes for additional property or non-residents
Buying a £500,000 home as an additional property — second home, buy-to-let, parental help — adds the 5% surcharge across every band:
| Buyer type | Stamp duty on £500,000 (England) |
|---|---|
| Main home (UK resident) | £15,000 |
| First-time buyer (UK resident) | £10,000 |
| Additional property (UK resident) | £40,000 |
| Main home (non-UK resident) | £25,000 |
| Additional property (non-UK resident) | £50,000 |
Source: SDLT bands and surcharges as published on gov.uk for purchases completing in 2026.
Worked examples around £500k
Example 1 — Movers buying a £495,000 family home in Reading. Main home, UK residents. Tax: £14,750. Saving £5,000 off the asking price knocks £250 off stamp duty.
Example 2 — First-time buyers offering £499,000 on a London flat. With FTB relief: £9,950. The same flat at £505,000 — relief withdrawn — would cost £15,250 in stamp duty, a swing of £5,300 for £6,000 of price.
Example 3 — Buy-to-let landlord paying £500,000 for a Birmingham terrace. Standard SDLT £15,000 + 5% surcharge of £25,000 = £40,000. That's 8% effective — material to any rental yield calculation.
Scotland and Wales differ
Stamp duty is devolved. On a £500,000 main-home in Scotland (Land and Buildings Transaction Tax), you'd pay £23,350 — Scotland's bands are stricter at this price. In Wales (Land Transaction Tax), the same purchase costs £18,000. Switch the country dropdown above for the right number.
Where Offrly fits
The £15,000 figure is fixed by HMRC. The £500,000 isn't. Half the variance in stamp duty bills comes from the price someone agrees to pay, not from the rates. Offrly's AI reads each comparable's photos (garden, condition, layout, finish) the way a seasoned property analyst would, and hyperlocal pricing resolves prices to the street rather than the postcode — in about 30 seconds. Free. No email. A sharper first-pass price than anything else online.
Other stamp duty calculators: £400,000 · £750,000 · £1m · First-time buyer · Additional property · Non-resident · Scotland (LBTT) · Wales (LTT) · Head calculator
Disclaimer: Indicative figures based on HMRC SDLT rules in force April 2026. Not tax advice. Confirm the binding figure with your conveyancer before exchange. Offrly valuations are market guidance, not regulated valuations.
FAQ: Stamp duty on a £500,000 property: £15,000 (England, 2026)
How much is stamp duty on a £500,000 house in England?
£15,000 for a main-home buyer at the rates in force in 2026 — 0% on the first £125,000, 2% on the slice to £250,000 (£2,500) and 5% on the final £250,000 (£12,500). Effective rate is 3.0%. Source: HMRC stamp duty land tax bands.
What does a first-time buyer pay on a £500,000 home?
Exactly £500,000 is the cliff edge for first-time buyer relief in England. At £500,000 you pay 0% on the first £300,000 and 5% on the £200,000 above — £10,000 total. £1 over £500,000 and the relief is withdrawn entirely, jumping you to £15,000+.
What about a £500,000 buy-to-let or second home?
The 5% additional-property surcharge applies on top of every band. On a £500,000 second home in England you'd pay £15,000 standard + £25,000 (5% × £500,000) = £40,000 total. Buy-to-let purchases held in a limited company pay the same higher rates.
Does the £500,000 figure include fees?
Stamp duty is calculated on the agreed purchase price, not the all-in cost. Conveyancing, mortgage arrangement and survey fees are paid separately. Search and Land Registry fees go on top — typically £200–£400 combined.
Can I avoid stamp duty by splitting fixtures from the price?
Genuine chattels (free-standing furniture, white goods) can be sold separately and are not stamped. HMRC scrutinises this — the apportionment must be honest and supported. Padding chattel value to dodge SDLT is tax evasion.