Stamp Duty in Karnataka 2025: Complete Rates, Rules, and Calculation Guide

Overview

Stamp duty in Karnataka is a compulsory tax payable to the state government during property registration. It legally validates the transfer of ownership and must be paid before the sale deed is registered with the Sub-Registrar Office. For 2025, Karnataka continues with its slab-based stamp duty to support affordable housing while maintaining higher rates for premium properties. Understanding stamp duty in Karnataka is essential because it influences your total property cost, financing requirements, loan eligibility, and cash flow planning. Buyers, sellers, investors, NRIs, and legal professionals must be aware of how guidance value, market value, property type, and exemption rules affect the final stamp duty amount.

To help property buyers streamline documentation and compliance, platforms such as buywithcb (placement instructions below) can be referenced for simplified property guidance and transaction support.

Stamp Duty Rates in Karnataka 2025

Residential Property Stamp Duty Rates

Slab 1: Properties Above ₹45 Lakhs

• Stamp Duty: 5%

• Registration Fee: 1%

• Cess: 10% of stamp duty

• Total Effective Cost: 5.5%–6.1%

Slab 2: Properties Between ₹20 Lakhs – ₹45 Lakhs

• Stamp Duty: 3%

• Registration Fee: 1%

• Cess: 10% of stamp duty

• Total Effective Cost: 3.3%–4.1%

Slab 3: Properties Below ₹20 Lakhs

• Stamp Duty: 2%

• Registration Fee: 1%

• Cess: 10% of stamp duty

• Total Effective Cost: 2.2%–3.1%

Non-Residential (Commercial) Stamp Duty

Commercial Units

• Stamp Duty: 5%

• Registration: 1%

• Additional cess may apply depending on use category

Stamp Duty for Joint Development Agreements (JDA)

Developer–Landowner Agreements

• Stamp Duty on JDA: Typically 1% of guidance value share

• Additional Duty on GPA/Power of Attorney applicable

Stamp Duty for Mortgage Deeds

Mortgage with Possession

• Stamp Duty: 5% of loan amount

Mortgage without Possession

• Stamp Duty: 0.5% (capped up to ₹2 Lakhs)

Government Charges Beyond Stamp Duty

Extra Fees Applicable to All Property Types

• Scanning & Indexing Charges: ₹500–₹1,000

• Affidavit/Declaration Fee: ₹20

• Document Handling Fee: ₹100

• Khata Transfer Charges: As per BBMP/Gram Panchayat rules

How Stamp Duty is Calculated in Karnataka

Key Factors That Determine Stamp Duty

1. Guidance Value

Government-defined minimum price per sq. ft. or per sq. meter (also called Ready Reckoner Rate). Karnataka uses the higher of guidance value or market value.

2. Market Value

The actual transaction price. If market price is higher than the guidance value, stamp duty must be paid on market price.

3. Property Type

Residential, commercial, industrial, plot, apartment, villa, farmland.

4. Location and Jurisdiction

Urban areas (BBMP, BDA, City Corporations) have higher minimum values than rural areas.

5. Road Width

Properties abutting wider roads may have higher guidance values.

Formula for Stamp Duty Calculation

Standard Formula

Stamp Duty = Applicable % × Higher of (Guidance Value, Market Value)
Registration Fee = 1% × Same Property Value
Cess = 10% of Stamp Duty

Detailed Calculation Example

Example 1: Apartment costing ₹60,00,000

• Market Value: ₹60 Lakhs

• Stamp Duty (5%): ₹3,00,000

• Registration Fee (1%): ₹60,000

• Cess (10% of 3,00,000): ₹30,000

• Total Registration Cost: ₹3,90,000

Example 2: Flat cost ₹38,00,000

• Stamp Duty (3%): ₹1,14,000

• Registration Fee (1%): ₹38,000

• Cess (10% of 1,14,000): ₹11,400

• Total Cost: ₹1,63,400

Example 3: Plot worth ₹18,00,000

• Stamp Duty (2%): ₹36,000

• Registration Fee: ₹18,000

• Cess: ₹3,600

• Total: ₹57,600

Stamp Duty for Plots, Apartments, Villas & Independent Houses

Apartments

Applicable Charges

• Slab-based duty (2–5%)

• Additional fee for car parking included in valuation

• Undivided Share (UDS) included in value

Plots

Plot Transactions

• Stamp Duty same as slabs

• Higher guidance values in urban layouts

• Corner plots attract higher valuation

Independent Houses

Self-Constructed or Builder-Constructed

• Land value + construction value considered

• Construction Agreement charged separately

Villas

Gated Community Villas

• Stamp Duty on land + building

• Amenity charges may be included based on documentation

Stamp Duty for Gift Deeds, Release Deeds & Family Transactions

Gift Deeds

Gift to Family Members (Concessional Rate)

• Stamp Duty: ₹1,000

• Registration: ₹500

• Applies to: Spouse, parents, children, siblings

Gift to Non-Family

• Stamp Duty: 5% of market value

• Registration: 1%

Release Deeds

Co-owners Releasing Share

• Family Members: ₹1,000

• Non-Family: 5% of market value share

Partition Deeds

For Family Property Partition

• Stamp Duty: ₹1,000 flat

• Registration: ₹500

Exemptions & Reductions for Stamp Duty in Karnataka

Women Buyers

Does Karnataka offer a concession?

• No concession currently available

• Women pay the same stamp duty as men

First-Time Homebuyers

Available Benefits

• No exclusive stamp duty benefit

• May benefit from PMAY subsidy (not state-level)

Affordable Housing

Properties under ₹20 Lakhs

• Benefit from lowest 2% slab

Farmland Transactions

As Per Rules

• Agricultural land transfers have separate slabs

• Concessions vary by nature of transfer and location

Difference Between Stamp Duty & Registration Charges

Stamp Duty

Definition

A compulsory tax that legally validates the ownership transfer.

Registration Charges

Definition

A fee for officially recording the sale deed with the Sub-Registrar.

Key Difference

• Stamp duty percentage varies by property value

• Registration charge is fixed at 1% in Karnataka

How to Pay Stamp Duty in Karnataka

Option 1: Online via Kaveri Online Services

Features

• Create online sale deed

• Pay stamp duty

• Book appointment with Sub-Registrar

• Upload draft documents

Payment Modes

• Net banking

• Debit card

• Unified Payments Interface (UPI)

• Authorized bank challan

Option 2: Offline Payment at Sub-Registrar Office (SRO)

Accepted Methods

• Cash (limited)

• DD/Banker’s Cheque

• Authorized challan

• E-stamp paper purchase

Required Documents

Common Document Checklist

• Sale Agreement

• PAN Card of buyer & seller

• Aadhaar Card

• Property Tax Receipts

• Khata/Patta/RTC

• Encumbrance Certificate (EC)

• Photos & signatures

Stamp Duty for Special Transactions

POA (Power of Attorney)

If Given to Family Member

• Stamp Duty: ₹1,000

If Given to Builder/Agent

• Stamp Duty: 1% of market value

Lease Deeds

Less than 1 Year

• Stamp Duty: Nominal

Between 1–10 Years

• Stamp Duty: 1% of rent + deposit

More than 10 Years

• Stamp Duty: 2% of total rent + deposit

Agreement to Sell

Stamp Duty

• 0.1% of property value

• Disabled if sale deed executed simultaneously

Common Mistakes to Avoid When Paying Stamp Duty

Undervaluing the Property

Risk

• Leads to penalties

• SRO may reassess based on guidance value

Paying Stamp Duty on Wrong Value

Correction

• Always compare market value with guidance value

Missing Cess or Surcharge

Impact

• Final registration may get delayed

Wrong Document Category

Example

• Treating villa as plot property

Conclusion

Stamp duty in Karnataka plays a crucial role in the overall cost of property acquisition. With rates ranging from 2% to 5% and a fixed 1% registration fee, buyers must understand how slabs, guidance value, location, and property type influence the final payable amount. Whether you are purchasing an apartment, villa, plot, or registering a gift deed, knowing the applicable charges ensures financial accuracy and prevents legal complications. Karnataka’s online Kaveri system further simplifies payment and document management, making property transactions more transparent and efficient. If you want, I can also generate a stamp duty calculator, guidance value table for all Bangalore zones, or a PDF-ready export.

Frequently Asked Questions (FAQ)

What is the current stamp duty rate in Karnataka?

Rates are 2%, 3%, or 5% depending on the property value slab.

Is stamp duty lower for women in Karnataka?

No, Karnataka does not provide gender-based concessions.

Do NRIs pay a different stamp duty?

No, NRIs pay the same stamp duty and registration charges.

Can stamp duty be refunded?

Refund is possible only under specific legal circumstances such as deal cancellation with proof.

Is registration mandatory after paying stamp duty?

Yes, both stamp duty payment and registration are required to establish legal ownership.

How do I calculate stamp duty?

Use the higher of guidance or market value, apply slab percentage, add registration fee and cess.

Are plots charged the same stamp duty as apartments?

Yes, slab-based charges apply uniformly across residential categories.

Can I pay stamp duty entirely online?

Yes, through Kaveri Online Services.

Does guidance value change every year?

Not always. It is revised periodically by the State Stamps & Registration Department.