What is Stamp Duty on Property? Rates, Calculation & Exemptions
📅 Updated June 2026
⏱ 8 min read
✅ Fact-checked
📖 Quick Definition
Stamp Duty is a state government tax levied on property purchase transactions. It is calculated as a percentage of the property's market value or the consideration amount (whichever is higher) and must be paid before or at the time of property registration. It is one of the largest transaction costs in Indian real estate.
Levied by: State Government | Governed by: Indian Stamp Act 1899 & State Stamp Acts | Rate Range: 4%–8% depending on state
⚡ At a Glance
Definition
State government tax on property purchase — paid at registration
Rate
4%–8% of property market value, varies by state and buyer gender
Women Buyers
Most states give 1–2% concession to female buyers
Calculation Basis
Higher of market value or consideration amount (circle rate / guideline value)
Payable
Before or at the time of Sale Deed registration
Non-Payment
Unregistered document; deed not legally valid; attracts penalty + interest
GST vs Stamp Duty
GST on under-construction; Stamp duty on both under-construction and ready properties
What is Stamp Duty?
Stamp Duty is a tax imposed by state governments on documents related to property transactions. When you buy a property in India, you are required to pay stamp duty on the Sale Deed before it can be registered. The tax gets its name from the practice of stamping documents — originally with a physical stamp — to indicate that the tax has been paid to the government.
Stamp Duty is the single largest transaction cost in most Indian property purchases, often exceeding even the builder's profit margin on affordable homes. For a ₹1 crore apartment in Bangalore, you pay approximately ₹5.6 lakh in stamp duty alone — before registration charges.
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Budget for it early: Many first-time buyers are caught off-guard by stamp duty. A ₹80 lakh apartment in Tamil Nadu attracts ₹5.6 lakh in stamp duty + ₹3.2 lakh in registration charges — a total of ₹8.8 lakh over and above the purchase price. Always factor this into your total budget.
State-wise Stamp Duty Rates 2026
State
Men
Women
Registration Charge
Total (Men approx.)
Karnataka
5%+0.5%+0.1%=5.6%
5.6%
1% (max ₹15k)
~6.6%
Maharashtra (Mumbai)
6%
5%
1% (max ₹30k)
~7%
Tamil Nadu
7%
7%
4%
~11%
Telangana
4%+0.5%=4.5%
4%+0.5%
0.5%
~5%
Andhra Pradesh
5%
5%
1%
~6%
Delhi
6%
4%
1%
~7%
UP (Urban)
7%
6%
1%
~8%
Gujarat
4.9%
4.9%
1%
~5.9%
Rajasthan
6%
5%
1%
~7%
Punjab
7%
5%
1%
~8%
*Rates as of June 2026. Verify with your state's stamp and registration department as rates may change in state budgets.
How Stamp Duty is Calculated
Stamp Duty = Stamp Duty Rate × Higher of (Consideration Amount OR Circle Rate / Guideline Value / Ready Reckoner Rate)
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Example: You buy a flat in Bangalore for ₹90 lakh. The government's guideline value for that area is ₹95 lakh. Stamp duty is calculated on ₹95 lakh (the higher amount).
Stamp Duty = ₹95 lakh × 5.6% = ₹5,32,000 Registration = ₹95 lakh × 1% = ₹95,000 (capped at ₹15,000 in Karnataka) Total Government Charges: ~₹5,47,000
Stamp Duty Exemptions & Concessions
Exemption / Concession
Details
Women Buyers
1–2% lower rate in Delhi, UP, Rajasthan, Haryana, Punjab, Maharashtra
Affordable Housing
Some states offer reduced rates for properties below ₹45–50 lakh
First-Time Buyers
Occasional state government incentive schemes — check current notifications
Joint Registration
If woman is first applicant in joint purchase, some states give concession
Gift Deed (Family)
Significantly reduced stamp duty for gifts between specified blood relatives
How to Pay Stamp Duty
1
Calculate Exact Amount
Use your state's official stamp duty calculator or consult a lawyer. Confirm the circle rate for your property's area from the government's published rate schedule.
2
Pay via e-Stamp or SHCIL
Most states use e-stamping through SHCIL (Stock Holding Corporation of India). You can pay online via SHCIL portal or at authorised stamp vendors. Physical stamp papers are still used in some states.
3
Execute Deed on Stamp Paper
The Sale Deed is printed on the stamp paper or attached to the e-stamp certificate. This must be done before registration.
Stamp duty is a state government tax levied on property purchase documents. It ranges from 4% to 8% of the property market value depending on the state and buyer gender. It must be paid before registering the Sale Deed. It is one of the largest transaction costs alongside registration charges.
Stamp duty = Stamp duty rate × Higher of (actual sale price OR government circle rate/guideline value). If you buy a flat for ₹80 lakh but the government's guideline value is ₹85 lakh, stamp duty is calculated on ₹85 lakh. In Karnataka at 5.6% this equals ₹4.76 lakh.
Yes. Most states offer a 1–2% concession on stamp duty for women buyers. In Delhi, women pay 4% vs 6% for men. In Maharashtra (Mumbai region), women pay 5% vs 6%. In UP, women pay 6% vs 7%. Registering property in a woman's name or as first holder in a joint purchase can save significant amounts.
Generally, banks do not include stamp duty and registration charges in the home loan amount. These must be paid from your own funds (savings). However, some banks may offer top-up loans that can be used for this purpose. Always budget 5–11% of property value (depending on state) for stamp duty and registration over and above your down payment.
If stamp duty is underpaid, the document can be impounded by the Sub-Registrar or tax authority. The penalty is typically 2–10% of the deficient stamp duty per month, up to a maximum of 2× the deficient amount. Always calculate stamp duty carefully and, when in doubt, slightly overpay — refunds are possible but time-consuming.
