Stamp duty in India: how it works
Stamp duty is a state tax on the sale deed, payable at the time of registration. Rates range from 4% to 8% across India, and the base it applies to is not what you might think.
Last updated: 19 May 2026
If you buy property in India, two state-level charges are non-negotiable at registration: stamp duty and the registration fee. Together they can add 5 to 11 percent to the cost of a purchase, depending on which state you are in and who is buying.
Stamp duty in particular is misunderstood often enough that a first-time buyer can be surprised at the sub-registrar's office. This guide explains the mechanism — what stamp duty is, what it is charged on, who sets the rate, and how it differs from a registration fee.
What stamp duty is
Stamp duty is a tax payable to the state government on certain legal documents. The most common is the sale deed for an immovable property — but stamp duty also applies to gift deeds, partition deeds, lease agreements above a certain term, and so on. Each document type attracts its own rate.
The legal basis is the Indian Stamp Act, 1899, which is amended state-by-state. Most states have their own version (Maharashtra Stamp Act, Karnataka Stamp Act, etc.) that determines local rates and exemptions.
It is a state tax, not central
Income tax and GST are central taxes — the rates are uniform across India. Stamp duty is not. Each state sets its own rate, and the rates vary widely. As of mid-2026:
- 4 percent — Telangana, Jharkhand (lowest tier)
- 4.9 percent — Gujarat
- 5 to 6 percent — most south Indian and central Indian states (Andhra, Odisha, Chhattisgarh, Bihar, Rajasthan, Maharashtra, Karnataka — varies)
- 7 to 7.5 percent — UP, Tamil Nadu, MP, Haryana (urban), Punjab
- 8 percent — Kerala (highest)
Most states grant a 1 to 2 percent concession to women buyers as a policy lever for women's property ownership — but several do not (Madhya Pradesh, Tamil Nadu, Kerala, Telangana, Jharkhand, West Bengal as of 2024). See the dedicated state-by-state women's concessions guide for current values.
What it is charged on
This is the part buyers most often get wrong. Stamp duty is not just charged on the price you paid. It is charged on the higher of:
- The consideration — the price stated in your sale deed
- The government's minimum valuefor the locality — called the "circle rate" in north and east India, the "guideline value" in Tamil Nadu and Karnataka, the "Ready Reckoner" in Maharashtra, the "Jantri" in Gujarat, or the "DLC rate" (per mauja or village) in MP, Bihar, Jharkhand, Rajasthan
So if you agree to buy a flat for ₹80 lakh, but the government's circle rate for that locality values it at ₹1 crore, your stamp duty is computed on ₹1 crore — not ₹80 lakh. This is to prevent under-declaration of consideration to evade tax.
See Circle rate, guideline value, Jantri, DLC: what they are for the full mechanism.
How it differs from registration fee
Many buyers conflate the two. They are separate.
| Stamp duty | Registration fee |
|---|---|
| State tax on the legal document | Fee for recording the document under the Registration Act, 1908 |
| 4–8% of value, varies by state | 1–4% of value, usually 1%; some states cap it |
| Often differs by gender / joint ownership | Usually does not vary by gender |
| Paid via e-stamp / SHCIL before registration | Paid at the sub-registrar's office during registration |
See Registration fee in India for the details.
When stamp duty is payable
Under the Indian Stamp Act, stamp duty is payable before or at the time of executionof the document. For property sale deeds, this practically means: you pay the stamp duty first (via e-stamping or franking), then take the stamped deed to the sub-registrar's office for registration along with the registration fee.
A deed that has not been stamped or under-stamped is not admissible as evidence in a court — meaning it is essentially worthless legally. There are penalty provisions for under-stamping (often 2 to 10 times the deficit), so this is one of the parts of a property transaction you really cannot cut corners on.
What stamp duty does not cover
A common confusion. Stamp duty does not include:
- GST on under-construction property — typically 5% for non-affordable housing, 1% for affordable. Paid to the builder, not the state. Separate from stamp duty. See GST on under-construction property.
- Society / builder transfer or maintenance dues — paid to the builder or society, separate from state charges.
- Municipal property tax — an annual recurring tax, unrelated to stamp duty (which is a one-time charge on the deed).
- Brokerage, legal fees, loan processing — paid to the agent, advocate, or bank respectively.
Use the calculator
The Settelo Stamp Duty Calculatormodels stamp duty and registration fee across 23 Indian states, including women's concessions and joint-ownership rules, with source links to every state IGR portal. The calculator speaks in each state's native vocabulary — DLC rate in MP, Jantri in Gujarat, guideline value in Tamil Nadu — and gives you a direct link to look up the locality rate.