What is Land Transaction Tax in Wales?
Land Transaction Tax (LTT) is the tax payable on certain purchases and leases of land and property in Wales.
It replaced Stamp Duty Land Tax (SDLT) in Wales in April 2018. LTT is administered by the Welsh Revenue Authority (WRA).
For residential property purchases, the amount payable depends on the purchase price and whether the main or higher residential rates apply.
Wales residential LTT rates for 2026/27
The standard residential LTT rates used in this calculator are:
| Property purchase price band | LTT rate |
|---|---|
| Up to £225,000 | 0% |
| £225,001 to £400,000 | 6% |
| £400,001 to £750,000 | 7.5% |
| £750,001 to £1,500,000 | 10% |
| Above £1,500,000 | 12% |
These are progressive rates. Each percentage applies only to the part of the purchase price within the relevant band.
Standard residential purchases at or below this amount generally have no LTT payable.
Applies to the portion of the purchase price above £225,000 and up to £400,000.
How is Welsh Land Transaction Tax calculated?
LTT uses a marginal tax band system. The entire purchase price is not charged at a single rate.
Instead, each portion of the price is taxed at the rate that applies to that band.
- Apply 0% to the first £225,000.
- Apply 6% to the portion between £225,000 and £400,000.
- Apply 7.5% to the portion between £400,000 and £750,000.
- Apply 10% to the portion between £750,000 and £1.5 million.
- Apply 12% to any amount above £1.5 million.
Welsh LTT worked examples
Example 1: £200,000 home
- Purchase price: £200,000
- Entire price within the nil-rate band
Estimated LTT: £0
Example 2: £300,000 home
- First £225,000 at 0%: £0
- Remaining £75,000 at 6%: £4,500
Estimated LTT: £4,500
Example 3: £450,000 home
- First £225,000 at 0%: £0
- Next £175,000 at 6%: £10,500
- Remaining £50,000 at 7.5%: £3,750
Estimated LTT: £14,250
Example 4: £800,000 home
- First £225,000 at 0%: £0
- Next £175,000 at 6%: £10,500
- Next £350,000 at 7.5%: £26,250
- Remaining £50,000 at 10%: £5,000
Estimated LTT: £41,750
Do first-time buyers pay LTT in Wales?
Wales does not have a separate first-time buyer LTT relief equivalent to the SDLT relief used in England and Northern Ireland.
Eligible standard residential purchases use the same main residential LTT bands, regardless of whether the buyer is purchasing their first home.
Therefore, a first-time buyer purchasing a £200,000 home under the main rates would have an estimated LTT liability of £0.
What about second homes and additional properties?
Higher residential LTT rates can apply when purchasing certain additional dwellings in Wales.
This includes many second-home and buy-to-let purchases, depending on the buyer's ownership circumstances and the transaction.
For these purchases, use the Higher Rate LTT Calculator Wales .
When is Land Transaction Tax paid?
LTT is generally associated with the effective date of a taxable property transaction, commonly completion.
Where an LTT return is required, the relevant filing and payment deadlines should be followed.
Your conveyancer or solicitor will commonly assist with calculating, reporting and paying the tax.
LTT versus Stamp Duty Land Tax
Land Transaction Tax applies in Wales, while Stamp Duty Land Tax applies in England and Northern Ireland.
Scotland has a separate property transaction tax called Land and Buildings Transaction Tax (LBTT).
Each jurisdiction has different rates, thresholds and relief rules.
How to use the Wales LTT Calculator
- Enter the purchase price of the residential property.
- Select Calculate.
- Review the estimated standard residential LTT.
- Confirm that the main residential rates apply.
- Check the final tax amount with the Welsh Revenue Authority or your conveyancer.
Official Welsh LTT guidance
For authoritative information about current LTT bands, thresholds and reliefs, consult Welsh Government – Land Transaction Tax rates and bands .
The Welsh Revenue Authority administers LTT and provides additional guidance on filing obligations and special cases.
Frequently asked questions
What is the LTT threshold in Wales in 2026?
The standard residential nil-rate band is £225,000 under the rates described here.
How much LTT is payable on a £300,000 home?
Under the main residential rates, the estimated LTT is £4,500.
Do first-time buyers pay Land Transaction Tax?
First-time buyers use the standard residential LTT bands where those rates apply. Wales does not offer a separate first-time buyer LTT band.
Is LTT payable on a £200,000 home?
Under the main residential rates, the estimated LTT is £0. Different rules may apply to additional-property purchases.
Does this calculator include second-home tax?
No. It uses the standard residential rates. Additional-property transactions may attract higher residential LTT.
Is Welsh LTT the same as SDLT?
No. LTT applies in Wales, while SDLT applies in England and Northern Ireland.
Can LTT rates change?
Yes. Tax rates and thresholds can change. Always check the rules applicable to your transaction.
Is this an official Welsh Revenue Authority calculator?
No. CalculatorsOnline is an independent website and is not affiliated with the Welsh Revenue Authority.
Related UK property calculators
Important: This calculator provides an informational estimate for a standard residential property purchase in Wales. Higher residential rates, non-residential transactions, linked purchases, leases, reliefs and unusual consideration may affect the final tax liability.
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