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There are five main types of tax that landlords have to pay:
Stamp duty is usually the first tax that landlords have to deal with. The Stamp Duty rate depends on the property purchase price.
Stamp duty land tax (SDLT) rates in the current tax year, 2025/26 👇
| Buyer type | Property value | Tax rate |
| First time buyer | Up to £425,000 | 0% |
| £425,000 – £925,000 | 5% | |
| Non-first time buyer | Up to £250,000 | 0% |
| £250,000 – £925,000 | 5% | |
| All buyers | £925,000 – £1.5m | 10% |
| £1.5m+ | 12% |
If you’re buying an additional property (i.e. landlords, holiday properties), you’ll pay an extra 5% SDLT on the above rates.Â
You pay an additional rate if you’re buying either a buy-to-let property or a second home. But be aware that Scotland and Wales have different rates and exemptions.
Want to work out what you owe in Stamp Duty? Try our Stamp Duty calculator.
To calculate it, add the rent (minus expenses) to your other income sources: this determines your tax band.
The income tax rates in the 2025/26 tax year 👇
| Income | Tax rate | Tax band |
| Up to £12,570 | 0% | Personal allowance |
| £12,571 to £50,270 | 20% | Basic rate |
| £50,271 to £125,140 | 40% | Higher rate |
| over £125,141 | 45% | Additional rate |
Check out our guide to paying tax on rental income for more information.
There are two types of National Insurance that you’ll need to pay. Class 1 and Class 4.
National Insurance rates in the 2025/26 tax year 👇
| NI class | Who pays? | How much? |
| Class 1 | Employees earning over £12,570 | 8% on earnings between £242 and £967 per week
2% if you earn £967+ per week |
| Class 1A/1B | Employers | 15% |
| Class 3 | Voluntary contributions | £17.75 per week |
| Class 4 | Self-employed earning over £12,570 | 6% on profits between £12,570-£50,270
2% on profits over £50,270 |
You need to pay CGT when you sell property for a profit. Check out our CGT calculator for more details.
Capital gains tax rates in the 2025/26 tax year. It’s paid on profits over the £3,000 CGT allowance 👇
| Type of asset | Basic rate | Higher rate |
| Shares | 10% | 20% |
| Residential property | 18% | 24% |
| Bitcoin/cryptocurrency | 10% | 20% |
| Other | 10% | 20% |
You don’t pay CGT when your profit is less than the CGT allowance or if you’re selling your main home.
In order to pay CGT on property, you must use HMRC’s Real Time Capital Gains Tax Service. This requirement came into place in April 2020.
Inheritance tax is a tax on everything you leave to people when you pass away, also called your estate.
Inheritance tax (IHT) rates in the 2025/26 tax year 👇
| Inheritance type | Tax-free threshold | Rate payable after threshold |
| Standard | £325,000 | 40% |
| Children, grandchildren | £500,000 | 40% |
| Spouse, civil partner, charity | No limit | 0% |
| Charity donation | 10% or more of estate value | 36% |
| Small gifts | £3,000 per tax year | 40% |
| Agricultural property | £1m* | 20% |
*there’s also a 50% tax relief for farmers with land worth more than £1m. Check out HMRC for more on this.Â
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