Glossary
Stamp Duty
Stamp duty is the state tax you pay to register a property document. In Karnataka it is charged on the higher of your price and the guidance value.
In plain words
When you buy a home, the sale deed must be registered with the sub-registrar. Before that, you pay stamp duty, a state tax set under the Karnataka Stamp Act, and a registration fee under the Registration Act. Both are worked out on the agreement value or the guidance value, whichever is higher.
The rates our calculator starts with are 5% stamp duty, with cess of 10% and surcharge of 2% charged on that duty, plus a 1% registration fee. The state amends these from time to time, and lower rates apply to some value bands, so treat these as a starting point and confirm with the sub-registrar.
A worked example (illustrative)
On a value of ₹80 lakh: duty at 5% is ₹4,00,000. Cess at 10% of that is ₹40,000 and surcharge at 2% is ₹8,000. Registration at 1% is ₹80,000. The total is ₹5,28,000, or 6.6% of the value. That is money you usually need in cash on top of your down payment, since most banks do not lend for it.
What to plan for
- Under-construction homes often pay a smaller duty on the agreement for sale first, then the balance on the sale deed. Ask how your builder handles it.
- Keep the duty in your savings plan, separate from the down payment.
- Pay through the official channels and keep the receipts with your deed.
- Check the guidance value early so the higher-of rule does not surprise you.
Read more on the blog
Related terms
See all glossary terms. This page explains a term; it is not legal or tax advice, and rupee figures are illustrative.
FAQ
Stamp Duty: common questions
Can I add stamp duty to my home loan?
Most banks do not fund stamp duty and registration, so plan to pay them from savings. Ask your lender, as policies differ.
Is there a lower rate for women buyers in Karnataka?
Some states offer one. Check Karnataka’s current schedule with the sub-registrar or the registration department rather than assuming.
When is stamp duty paid on an under-construction flat?
Duty is paid when a document is registered. Many buyers register the agreement for sale first and the sale deed later; ask your lawyer how the duty is split.
Is stamp duty the same as GST?
No. Stamp duty is a state tax on registering the document. GST applies to under-construction sales and is shown separately on your cost sheet.
Want someone to walk you through it?
Ask the Reeva team about this, or anything else on your first-home paperwork. We will call back, with no pressure to buy.