Stamp duty and registration charges are mandatory government levies paid at the time of property registration. They are calculated on the higher of the actual sale consideration or the guideline value (circle rate / ready reckoner value) published by each state government. These charges add significantly to the total cost of a property purchase and must be budgeted carefully.
Important: Stamp duty rates are subject to revision by state governments, often announced in state budgets. The figures below are indicative based on publicly available information and may not reflect the latest revisions. Always verify current rates with the Sub-Registrar's office or on the state's registration department website before finalising any transaction.
Approximate Stamp Duty Rates by State
| State | Stamp Duty (approx.) | Registration Charge (approx.) | Other Charges |
|---|---|---|---|
| Tamil Nadu | 7% | 1% (capped for residential) | Surcharge applicable |
| Andhra Pradesh | 5% | 1% | Transfer duty ~1.5% |
| Telangana | 4% | 0.5% | Transfer duty 1.5% |
| Karnataka | 3%–5% (slab-based) | 1% | Surcharge / cess may apply |
| Kerala | ~8% | 2% | — |
Tamil Nadu — Stamp Duty Details
Tamil Nadu has one of the highest stamp duty rates in India. The stamp duty is calculated on the guideline value fixed by the Tamil Nadu Inspector General of Registration (TNIGR), which is revised periodically. Buyers can check the guideline value for a specific survey number on the TNIGR portal (tnreginet.gov.in) or at the Sub-Registrar's office.
Women buyers in Tamil Nadu receive a concession on stamp duty — the state government periodically revises this concession, which has historically been in the range of 1–2 percentage points. Verify the current concession applicable at the time of your purchase.
Andhra Pradesh — Key Features
Andhra Pradesh charges stamp duty at 5%, plus a transfer duty of approximately 1.5%, and a 1% registration charge, making the total approximately 7.5% of the consideration value. Stamp duty values can be verified on the IGRS AP portal (igrs.ap.gov.in).
Telangana — Notable Difference
Telangana offers a relatively competitive total levy of approximately 6% (stamp duty 4% + registration 0.5% + transfer duty 1.5%), making it one of the more affordable states for registration costs in South India. Values can be checked on the IGRS Telangana portal (igrs.telangana.gov.in). Hyderabad's guideline values have been regularly revised upward given sustained real estate growth.
Karnataka — Slab Structure
Karnataka uses a slab-based stamp duty system. Buyers of lower-value properties pay a lower percentage, while properties above certain value thresholds attract a higher rate. Karnataka's registration is 1%. Buyers in Bengaluru should factor in that guideline values in prime areas like Indiranagar, Koramangala, and Whitefield can be substantial, making the absolute amount of stamp duty significant even at 5%.
Kerala — Highest in South India
Kerala has among the highest combined stamp duty and registration charges in India at approximately 8% stamp duty plus 2% registration. This significantly adds to the cost of property acquisition in Kerala. Buyers in Kerala should factor this prominently into their budget.
How Guideline Value (Circle Rate) Works
The state government fixes a minimum value per square foot / square metre for each area, called the guideline value. This is revised periodically (some states revise annually, others less frequently). If your agreed sale price is:
Above the guideline value: Stamp duty is calculated on the agreed sale price.
Below the guideline value: Stamp duty is calculated on the higher guideline value, and the Sub-Registrar will register the deed at the guideline value. The income tax implications for the seller (Section 50C) also kick in — the stamp duty value is treated as the full sale consideration for capital gains purposes.
Practical Tips
Budget stamp duty and registration as part of your total acquisition cost from day one — these charges are paid entirely by the buyer in South India.
Always check the guideline value of the specific survey number before negotiating the price — this sets the effective floor for registration cost.
Stamp duty must be paid via a Demand Draft (DD) or e-stamp (depending on state) — it cannot be paid in cash for amounts above the threshold.
Home loan disbursements are made directly to the seller; stamp duty is typically paid separately from your own funds since banks generally do not finance stamp duty (some banks include it in the loan — check with your lender).