Home & Property · 7 min read
Stamp duty and registration charges when buying a home in India
Stamp duty and registration can add 5 to 8 percent to a property's price, the cost buyers most often forget to budget. Here is how it works and how to lower it.
Krish Dalal
Founder and editor, PaisaExpert. Master's in Business Management, SP Jain School of Global Management, London. · Last updated 2026-06-01
When people work out whether they can afford a home, they think about the price and the EMI and forget the cost of simply making the purchase legal. Stamp duty and registration are unavoidable, due at the time of registration, and large enough to derail a tight budget. Factoring them in is part of the honest rent vs buy maths, and worth knowing before you fall in love with a property at the top of your range.
What you are actually paying
- Stamp duty. A tax the state charges on the property transaction, calculated on the higher of the sale price or the government's ready-reckoner (circle rate) value. It typically ranges from 4 to 7 percent depending on the state.
- Registration charge. The fee to officially register the sale in government records, usually around 1 percent of the property value, sometimes capped.
- Both are paid by you, the buyer, at registration, and neither is covered by your home loan. They must come from your own savings, alongside the down payment.
| State (indicative, verify current rate) | Typical stamp duty | Women buyer concession |
|---|---|---|
| Maharashtra | 5 to 6 percent (incl. local cess) | 1 percent lower in many cases |
| Delhi | 6 percent for men | 4 percent for women |
| Karnataka | Around 5 percent | Limited concessions |
| Uttar Pradesh | 7 percent | Rebate up to a capped amount |
| Tamil Nadu | 7 percent | Same for all buyers |
How to legally pay less
- Register in a woman's name, or jointly. Many states charge women buyers 1 to 2 percent less stamp duty. If your spouse or mother is a co-owner, you may qualify for the lower rate on her share, a genuine, legal saving worth lakhs on a large property.
- Watch for temporary state rebates. States periodically cut stamp duty for a few months to revive sales. If you are flexible on timing, buying during such a window can save a large sum.
- Make sure the registered value reflects reality. Stamp duty is charged on the higher of the actual price or the circle rate. If the circle rate is higher than your price, you pay duty on the circle rate, so check it before you negotiate.
Frequently asked
What to do next
- Confirm the current stamp duty and registration rate for your city and property type with the state registration department.
- Run your property value through the stamp duty calculator to see the full charge, including any women-buyer concession.
- Add stamp duty plus registration to your down payment when working out what you can actually afford.
- If a woman in the family is a co-buyer, check whether registering in her name lowers the duty.