FAQ: How Is Stamp Duty Calculated on Property Purchase?

Stamp duty is a tax levied by state governments on the transfer of immovable property. It's a significant cost — typically 4–8% of the property value — and it varies by state, gender of the buyer, and sometimes the location within the state.

How stamp duty is calculated:

The stamp duty is calculated on the higher of two values: the transaction value (the price you're paying) or the circle rate (the government-determined minimum value for the area, also called the guidance value or ready reckoner rate). If the transaction value is higher than the circle rate, stamp duty is paid on the transaction value. If the circle rate is higher, you pay on the circle rate.

State-wise stamp duty rates (approximate, including any local cess):

- Maharashtra: 5% (6% in Mumbai within municipal limits, with 1% metro cess) - Karnataka: 5% (Bengaluru) - Telangana: 7.5% (Hyderabad) - Delhi: 4% (women), 6% (men) - Uttar Pradesh: 7% (Noida/Greater Noida) - Tamil Nadu: 7% (Chennai) - West Bengal: 6% (Kolkata, up to ₹1 crore) - Gujarat: 4.9% (Ahmedabad) - Rajasthan: 5% (women), 6% (men)

Gender discount: Many states offer a lower stamp duty rate for female buyers — typically 1–2% lower. Registering the property jointly with a female co-owner can reduce the stamp duty cost.

Registration charges are separate from stamp duty and typically add 0.5–1% of the property value.

For a ₹1 crore property in Bengaluru, stamp duty (5%) plus registration (1%) = ₹6 lakh. In Hyderabad, it would be ₹8.5 lakh (7.5% + 1%). This difference should be factored into your city-level investment comparison.

Stamp duty is non-negotiable and must be paid before the sale deed can be registered.

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