Tax
How to Calculate Stamp Duty on Property
Two numbers, one rate, and a concession most buyers never ask about. Ten minutes of arithmetic that can save you a lakh.
The short answer
Stamp duty = the state's rate × the HIGHER of (your price) or (the circle rate).
Rates run from about 4% to 7%, plus registration of 0.5–1% (4% in Tamil Nadu).
And the thing most buyers never ask about: several states charge 1–2 percentage points LESS when the buyer is a woman. On a ₹1 crore property, that is ₹1–2 lakh.
The five steps
- Find the circle rate for the locality and property type. State registration portal. Free.
- Multiply by the area to get the minimum value. (In Maharashtra, apply the floor and age factors too.)
- Compare with your agreed price. Take the higher.
- Apply your state's stamp duty rate — and check whether a concession applies to you.
- Add registration charges — usually 0.5–1%, but 4% in Tamil Nadu.
Rates by state — indicative
| State | Stamp duty | Registration | Combined |
|---|---|---|---|
| Karnataka | 5% (above ₹45 lakh) | 1% | 6% |
| Telangana | 4% | 0.5% (+1.5% transfer duty) | ~6% |
| Maharashtra | 5–6% | 1%, often capped | ~6–7% |
| Tamil Nadu | 7% | 4% | 11% — the highest in India |
| Delhi | 6% men / 4% women | 1% | 5–7% |
| Uttar Pradesh | 7% men / 6% women (to a cap) | 1% | 7–8% |
| Gujarat | 4.9% | 1% (nil for women) | ~5–6% |
| Haryana | 7% men / 5% women | Varies by slab | ~6–8% |
| West Bengal | 5–7% | 1% | 6–8% |
Indicative only — rates change with state budgets. Confirm with the sub-registrar before you budget. Note Tamil Nadu: 11% combined, against 6% in Karnataka. On an Rs 85 lakh property, that is a Rs 4.25 lakh difference on identical money.
The concession nobody asks about
Delhi: 4% instead of 6%.
Haryana: 5% instead of 7%.
Uttar Pradesh: 6% instead of 7%, up to a cap.
Gujarat: registration charges waived entirely.
Punjab and Rajasthan also offer concessions.
On a ₹1 crore property in Delhi, that is ₹2 lakh.
Joint ownership with a woman may attract a partial concession in some states.
Registering a property in your wife's name to save ₹2 lakh of stamp duty has consequences:
• She owns it. That is what registration means.
• Capital gains on a future sale will be hers.
• Succession will follow from her ownership.
• Clubbing provisions may apply if you funded it — take advice.
None of that is a reason not to do it. It is a reason to do it deliberately, rather than as a stamp duty trick.
A worked example
Bengaluru flat, 1,200 sq ft
- Agreed price
- ₹80,00,000
- Circle rate / guideline value
- ₹85,00,000
- Duty is charged on the higher
- ₹85,00,000
- Stamp duty @ 5%
- ₹4,25,000
- Registration @ 1%
- ₹85,000
- Payable at the sub-registrar
- ₹5,10,000
The same flat in Chennai, where the combined rate is 11%:
Chennai — the same ₹85 lakh
- Stamp duty @ 7%
- ₹5,95,000
- Registration @ 4%
- ₹3,40,000
- Payable at the sub-registrar
- ₹9,35,000
₹4.25 lakh more, on the same property. Budget for your state, not for an average.
What people get wrong
1. Budgeting on the agreed price
Duty is on the higher of your price or the circle rate. Negotiate below the circle rate and you still pay on the circle rate.
2. Forgetting registration charges
Usually 1%. But 4% in Tamil Nadu — which is not a rounding error, it is ₹3.4 lakh on an ₹85 lakh flat.
3. Not asking about the women's concession
Worth ₹1–2 lakh in several states, and nobody at the sales office is going to raise it for you.
4. Not claiming it under 80C
Stamp duty and registration are deductible under Section 80C — in the year you pay them, within the ₹1.5 lakh cap, and old regime only. You cannot carry it forward. If your 80C is already full from EPF, the benefit is simply lost.
We have written this against the current position and checked it carefully. But tax turns entirely on your specific facts: your residential status, when you bought, when you sell, which regime you are on, and what else is in your return.
Note also that the Income Tax Act, 2025 now replaces the 1961 Act, and section numbering is changing even where the substance is not. We use the familiar numbers — 54, 54F, 24(b), 80C — because those are what people search for and what CAs still say. Confirm the current section references with your accountant.
Before you sell a property, pay a CA. On a transaction this size it is the best-value fee you will ever pay, and the cost of getting it wrong runs to lakhs.
Frequently asked questions
How is stamp duty calculated in India?
The state's rate applied to the HIGHER of your transaction value or the government's circle rate for that locality. Rates run from about 4% to 7%, with registration of 0.5-1% on top — except Tamil Nadu, where registration is 4%.
Do I pay stamp duty on the price I paid or the circle rate?
On whichever is higher. If you negotiate a price below the circle rate, you still pay duty on the circle rate — the state does not accept that a property is worth less than it says it is. Look up the circle rate before you negotiate, not after.
Do women pay less stamp duty in India?
In several states, yes. Delhi charges 4% instead of 6%, Haryana 5% instead of 7%, Uttar Pradesh 6% instead of 7% to a cap, and Gujarat waives registration charges entirely for women. On a Rs 1 crore property that can be Rs 2 lakh. Consider the ownership, capital gains and succession implications before restructuring purely for the discount.
Which state has the highest stamp duty?
Tamil Nadu, on a combined basis — 7% stamp duty plus 4% registration is 11%, against about 6% in Karnataka. On an Rs 85 lakh property that is Rs 9.35 lakh versus Rs 5.10 lakh.
Can I claim stamp duty as a tax deduction?
Yes, under Section 80C — but only in the year you actually pay it, within the Rs 1.5 lakh overall cap, and only under the OLD tax regime. You cannot carry it forward, so if your 80C is already exhausted by EPF and insurance, the benefit is simply lost.