LBTT in Scotland 2026/27: how much will you pay?
Land and Buildings Transaction Tax (LBTT) is the tax you pay when you buy a home in Scotland. It replaced Stamp Duty in Scotland in April 2015 and is collected by Revenue Scotland.
On a typical £195,000 Scottish home you pay £1,000 in LBTT, or £400 as a first-time buyer. If it is an additional property, such as a buy-to-let, you pay £16,600 because of the 8% Additional Dwelling Supplement.
Want a figure for a specific price? Use the LBTT calculator.
LBTT rates for 2026/27
LBTT is charged in bands. You pay each rate only on the part of the price that falls inside that band, not on the whole price.
| Part of the price | Rate |
|---|---|
| Up to £145,000 | 0% |
| £145,001 to £250,000 | 2% |
| £250,001 to £325,000 | 5% |
| £325,001 to £750,000 | 10% |
| Over £750,000 | 12% |
Worked example: £250,000
- First £145,000 at 0%: £0
- Next £105,000 at 2%: £2,100
- Total LBTT: £2,100
LBTT at common Scottish prices
| Price | Standard | First-time buyer | Additional property (with ADS) |
|---|---|---|---|
| £145,000 | £0 | £0 | £11,600 |
| £195,000 | £1,000 | £400 | £16,600 |
| £250,000 | £2,100 | £1,500 | £22,100 |
| £300,000 | £4,600 | £4,000 | £28,600 |
| £400,000 | £13,350 | £12,750 | £45,350 |
Residential purchases in 2026/27. Excludes legal fees and registration dues.
Want this worked out for a specific listing? Get a free report.
First-time buyer relief
If you have never owned a home anywhere in the world, first-time buyer relief raises the 0% band from £145,000 to £175,000. That saves up to £600. There is no upper price limit, so you get the saving at any price.
If you are buying jointly, every buyer must be a first-time buyer to claim the relief.
The Additional Dwelling Supplement (ADS)
If you will own more than one home when the purchase completes, you usually pay the Additional Dwelling Supplement on top of LBTT. This covers buy-to-let properties and second homes.
- ADS is 8% of the whole price, not just the part above a threshold.
- It applies to additional properties costing £40,000 or more.
- The rate rose from 6% to 8% on 5 December 2024.
If you are replacing your main home but buy the new one before selling the old one, you pay ADS at first. You can claim it back if you sell your previous main home within 36 months.
Worked example: £195,000 buy-to-let
- Standard LBTT: £1,000
- ADS at 8% of £195,000: £15,600
- Total: £16,600
When and how LBTT is paid
Your solicitor submits the LBTT return to Revenue Scotland and pays the tax on your behalf, usually from funds you send them before the purchase completes. The return and payment are due within 30 days of completion.
Other costs to budget for
LBTT is only part of the cost of buying. Also allow for:
- Solicitor's fees for the conveyancing
- Registration dues to Registers of Scotland
- Mortgage arrangement and valuation fees, if you are borrowing
- Removals and any immediate repairs flagged in the Home Report
LBTT on higher-value homes
| Price | Standard | First-time buyer |
|---|---|---|
| £500,000 | £23,350 | £22,750 |
| £750,000 | £48,350 | £47,750 |
| £1,000,000 | £78,350 | £77,750 |
Because the 10% band starts at £325,000, LBTT rises quickly above that price. On a £400,000 home the tax is £13,350, compared with £4,600 at £300,000.
How LBTT compares with Stamp Duty in England
Scotland and England have different property taxes. Scotland's 0% band is higher (£145,000 compared with £125,000), so buyers pay less tax on lower-priced homes. Above £325,000, Scotland's 10% band means Scottish buyers usually pay more. For example, on a £250,000 home LBTT is £2,100, while Stamp Duty in England is £2,500.
If you are moving to Scotland from England, don't use an English stamp duty calculator.
Buying jointly
- First-time buyer relief: every buyer must be a first-time buyer. If one of you has owned a home before, the relief doesn't apply.
- ADS: if any buyer will own another home after the purchase and isn't replacing a main residence, ADS usually applies to the whole price.
Common mistakes
- Applying one rate to the whole price instead of to each band
- Assuming first-time buyer relief applies if only one buyer qualifies
- Forgetting ADS on a second home or buy-to-let, which is charged on the whole price
- Budgeting LBTT on the asking price instead of the price you might actually pay
- Using a calculator built for England
LBTT and your offer
LBTT goes up as your offer goes up. Every £10,000 you add between £250,000 and £325,000 costs £500 more in tax; between £325,000 and £750,000 it costs £1,000 more. Include this when you set your maximum offer.
Frequently asked questions
How much LBTT will I pay on a £200,000 house in Scotland?
At 2026/27 rates you pay £1,100 at standard rates, or £500 as a first-time buyer. If it is an additional property, the 8% ADS adds £16,000, for a total of £17,100.
Do first-time buyers pay LBTT in Scotland?
First-time buyers pay no LBTT on the first £175,000 of the price. Above that, the normal rates apply, so the relief saves up to £600.
When is LBTT paid?
Your solicitor submits the LBTT return and pays the tax to Revenue Scotland, normally within 30 days of completion, using funds you provide before the date of entry.
Sources
- Scottish Government: Scottish Budget 2026 to 2027
- Registers of Scotland
- mygov.scot: Home Reports
- Revenue Scotland: LBTT residential property
- Revenue Scotland: Additional Dwelling Supplement
This guide is general information, not tax or legal advice. Check your figures with your solicitor.