Stamp Duty and Registration Charges in Karnataka

Short answer: In Karnataka, as of September 2026, the stamp duty on a property sale deed is 5% of the property's market value or the consideration amount, whichever is higher. Additional charges, including a cess (10% on stamp duty) and a surcharge (2-3% on stamp duty), bring the total effective rate to approximately 5.6% in urban areas. The registration charge is a flat 1% of the property value.

What are the current stamp duty rates in Karnataka for property?

The total stamp duty payable on a property conveyance or sale deed is a combination of three components.

1. Basic Stamp Duty: This is set at 5% of the market value of the property.
2. Cess: A cess of 10% is levied on the basic stamp duty amount.
3. Surcharge: An additional surcharge is levied on the basic stamp duty. The rate is 2% for properties located within City Corporation limits (like Bengaluru's BBMP) and 3% for properties in other areas (like Town Municipal Councils or Panchayats).

Therefore, for a property in Bengaluru, the effective stamp duty rate comes to 5% (Basic) + 0.5% (10% Cess on 5%) + 0.1% (2% Surcharge on 5%) = 5.6%.

How is the property's market value calculated for stamp duty?

The property's market value is determined by the Department of Stamps and Registration and is known as the 'guidance value' or 'circle rate'.

This is the minimum value at which a property in a particular locality can be registered. The government revises these values periodically based on market trends and development in the area. Stamp duty is always calculated on the higher of two values: the guidance value of the property or the actual sale price (consideration) mentioned in the sale deed. You can check the applicable guidance value for your property on the official Kaveri 2.0 portal before drafting your deed.

What are the registration charges in Karnataka?

Registration charges are separate from stamp duty and are paid for the service of recording the document in government records.

In Karnataka, the registration fee for property documents is a flat 1% of the market value of the property (the same value on which stamp duty was calculated). This fee is paid directly at the Sub-Registrar's Office during the registration process, often via a demand draft or online payment through the Kaveri 2.0 portal. Without paying this fee, the registration process is incomplete.

Are there any concessions on stamp duty?

Yes, the Karnataka government occasionally provides concessions to promote specific objectives like affordable housing or to aid specific transactions.

While the standard rate is 5% (+ cess and surcharge), the government has previously offered reduced rates for first-time registration of new properties in the affordable housing segment (e.g., properties valued up to ₹45 lakh). It is essential to check for any current notifications or government orders at the time of your transaction. Furthermore, certain deeds, like a gift deed to a family member, attract a much lower, fixed stamp duty instead of the ad-valorem (percentage-based) rate. For a deeper understanding of property title, read our guides on property title verification and the difference between A Khata and B Khata.

What other documents require stamp duty?

Stamp duty is not limited to property sales. Many other legal and commercial documents are required to be stamped to be legally valid and admissible as evidence. The rates vary based on the instrument.

Instrument Type	Stamp Duty in Karnataka (Illustrative)	Registration Fee	Is Registration Mandatory?
Sale Deed	5.6% of market value (in urban areas)	1% of market value	Yes
Gift Deed (to Family)	Fixed ₹5,000 + Surcharge & Cess	Fixed ₹1,000	Yes
Gift Deed (to Non-Family)	Same as Sale Deed (5.6%)	1% of market value	Yes
Partition Deed (Family)	₹1,000 per share + Surcharge & Cess	₹500 per share	Optional, but advisable
Rental Agreement (< 1 Year)	Varies based on rent & deposit (e.g., 1% of total rent)	Not required	No
Rental Agreement (> 1 Year)	Varies based on rent & tenure per schedule	Required	Yes
Power of Attorney (Sale)	Same as Sale Deed if given to non-family	May be required	Optional, but advisable

Note: Rates are subject to change. Always verify the latest applicable rates from the Karnataka Stamp Act, 1957, or on the Kaveri 2.0 portal. For a comparison of property transfer methods, see our guide on Relinquishment Deed vs. Gift Deed.

Worked example

Let's assume Mr. Rohan is purchasing a flat in Jayanagar, Bengaluru, for a price of ₹90,00,000. The government's guidance value for the property is ₹85,00,000.

Since stamp duty is paid on the higher value, all calculations will be based on the sale consideration of ₹90,00,000.

• Step 1: Calculate Market Value The higher of sale price (₹90 Lakh) and guidance value (₹85 Lakh) is ₹90,00,000.

• Step 2: Calculate Basic Stamp Duty 5% of ₹90,00,000 = ₹4,50,000

• Step 3: Calculate Surcharge Jayanagar is in Bengaluru (BBMP limits), so the surcharge is 2% on the basic stamp duty. 2% of ₹4,50,000 = ₹9,000

• Step 4: Calculate Cess Cess is 10% on the basic stamp duty. 10% of ₹4,50,000 = ₹45,000

• Step 5: Calculate Total Stamp Duty Total Stamp Duty = ₹4,50,000 + ₹9,000 + ₹45,000 = ₹5,04,000 (This equals 5.6% of ₹90,00,000)

• Step 6: Calculate Registration Fee 1% of ₹90,00,000 = ₹90,000

• Step 7: Total Transaction Cost Total Government Charges = ₹5,04,000 (Stamp Duty) + ₹90,000 (Registration) = ₹5,94,000

In addition to this, Mr. Rohan must also deduct and pay TDS on the property purchase under Section 194IA, which is 1% of the sale consideration, i.e., ₹90,000.

Common mistakes

1. Using the Wrong Property Value: Calculating stamp duty on the agreement value when the guidance value is higher. This will be caught by the sub-registrar and will require payment of the deficit along with potential penalties.
2. Forgetting Surcharge and Cess: Many online calculators only show the 5% basic rate. Forgetting the additional 0.6% (for urban areas) leads to a shortfall and delays during registration.
3. Ignoring Encumbrances: Proceeding with stamp duty payment without obtaining an up-to-date Encumbrance Certificate (EC) to check for mortgages, liens, or legal disputes against the property.
4. Errors in the Deed: Minor mistakes like typos in names, addresses, or the property schedule in the sale deed can lead to rejection by the sub-registrar, forcing you to redraft and reprint on new e-stamp paper.
5. Delaying Registration: A document must be presented for registration within four months of its execution (signing). Delays beyond this period can attract a penalty of up to ten times the registration fee.

How SP & SC helps

Navigating property transactions involves significant financial commitment and complex legal formalities. SP & SC Legal ensures your interests are protected at every stage. We provide end-to-end assistance, from conducting thorough due diligence and property title verification to drafting legally robust sale agreements and sale deeds. Our team calculates the precise government fees, procures e-stamps, and manages the entire registration process at the Sub-Registrar's Office, ensuring a seamless and secure transaction. For expert guidance and execution, explore our Deed Registration services.

Frequently asked questions

Can I pay stamp duty online in Karnataka?

Yes, stamp duty in Karnataka is paid online through the Kaveri 2.0 portal. You can generate a challan, make the payment through net banking or other online modes, and get a downloadable e-stamp certificate, which is then printed and attached to your deed.

Is stamp duty refundable if the property deal is cancelled?

Yes, if a stamped document is not used or the transaction is cancelled, you can apply for a refund of the stamp duty from the District Registrar. The application must typically be filed within six months from the date of the e-stamp certificate, and the government usually deducts 10% of the stamp duty before processing the refund.

Who pays the stamp duty, the buyer or the seller?

Under Section 29 of the Karnataka Stamp Act, 1957, in the absence of an agreement to the contrary, the liability to pay stamp duty in a sale transaction falls on the buyer (grantee).

What is the penalty for not paying adequate stamp duty?

If a document is not duly stamped, it is inadmissible as evidence in a court of law. The Collector of Stamps can impound such a document and levy a penalty that can be up to ten times the amount of the deficient stamp duty.

Do I need to pay stamp duty on a home loan agreement?

Yes. The stamp duty paid on the sale deed is for the transfer of property. The home loan agreement, or mortgage deed, is a separate instrument and attracts its own stamp duty. In Karnataka, this is typically around 0.1% to 0.2% of the loan amount, subject to a maximum limit.

Get a fixed-fee quote

Before you buy or sell property, ensure your legal and financial interests are secure. Share your documents with us for a confidential review and receive a written fixed-fee quote for our services. Contact SP & SC or WhatsApp us at +91 90356 74566. From title verification to final registration, we handle it all for you.