Buying a property in Karnataka is a significant financial decision that goes beyond just the sale price of the property. While prospective homeowners often focus primarily on the cost of the property itself, it is equally essential to understand stamp duty and registration charges. The government levies these charges, and they are necessary for safeguarding the interests of buyers.  Let’s know more about stamp duty and Karnataka’s property registration charges:

Current stamp duty rates in Karnataka

As of August 31, 2025, Karnataka has updated its stamp duty rates to reflect current market conditions. The rates are as follows:

• Properties valued below Rs. 20 lakh: 2% of the market value.
• Properties valued between Rs. 20 lakh and Rs. 45 lakh: 3% of the market value.
• Properties valued above Rs. 45 lakh: 5% of the market value.

Stamp duty is a one-time cost and is usually paid at the time of property registration. It is important to note that the payment is made to the Karnataka State Government, ensuring that the property transaction is legally recognised.

Understanding registration charges

While stamp duty establishes the legal validity of a property transaction, registration charges are the fees paid for officially recording the transaction in the government’s property records. Registration ensures that the buyer’s ownership rights are legally protected and publicly documented. The registration process is typically handled at the Sub-Registrar’s Office, and the buyer must submit all necessary documents.

Factors involved in the calculation of stamp duty in Karnataka

• The higher the value of your property, the higher the stamp duty charges will be.
• Popular urban locations have higher guidance value, leading to increased stamp duty charges.
• Residential and commercial properties have different stamp duty requirements. Stamp duty charges on commercial properties are often higher.
• Depending on government policies, women buyers or joint buyers may be eligible for additional discounts.

Tax benefits on stamp duty charges in Karnataka

• In Karnataka, buyers can claim up to Rs. 1.5 Lakhs as deduction on registration and stamp duty charges.
• However, this benefit only applies to new residential properties.
• You cannot delay the claim. You must process the claim in the same year as you purchase the property.
• You can claim this deduction only under the Old Tax Regime.

Key points to remember before paying stamp duty in Karnataka

Before paying stamp duty charges, here are some points you should remember:

• Ensure that you purchase the stamp paper in the name of the parties involved in the transaction. Also, stamp paper must be used within 6 months of issuance. Once the stamp paper expires, it cannot be used.
• All payments for stamp duty must be made before or on the day of execution. Payment delays can result in penalties or the rejection of documents.
• In Karnataka, you can pay stamp duty charges both offline and online.

Conclusion

Karnataka’s property registration charges and stamp duty charges are significant components of property purchase. Property buyers in Karnataka are encouraged to use official resources, online calculators, and professional advice to make informed decisions.