What is Stamp Duty and Why Do You Pay It?

Stamp duty is a tax levied by state governments on legal documents, particularly property transactions like sale deeds, gift deeds, and lease agreements. It is paid to make these documents legally valid and enforceable. In India, stamp duty rates vary significantly by state - ranging from 3% to 8% of the property value - making it one of the largest upfront costs in any property purchase.

In addition to stamp duty, buyers must pay registration charges to register the property in their name at the Sub-Registrar's office. Registration charges are typically 1% of the property value, capped at Rs.30,000 in some states. Together, stamp duty and registration charges can add 5-10% to your property purchase cost.

Many state governments offer stamp duty concessions for women buyers - typically 1-2% lower than the standard rate. Joint registration with a woman as co-owner also attracts concessions in several states.

When buying a plot in Bihar, Uttar Pradesh, Rajasthan, West Bengal, or Gujarat, listings often quote area in bigha rather than square feet, and 1 bigha differs by state. Standardise the plot area first with our Land Unit Converter (state-wise bigha to acre, sq ft, hectare) before computing stamp duty on per-sqft circle rates.

Stamp Duty Rates Across Major States

• Maharashtra: 5-6% (Mumbai 6%, women 5%)
• Karnataka: 5% (below Rs.20L: 2%, Rs.20-45L: 3%)
• Delhi: 4% women, 6% men, 5% joint
• Tamil Nadu: 7% stamp duty + 4% registration
• Uttar Pradesh: 7% (women 6%)
• Gujarat: 4.9% (women 3.9%)
• West Bengal: 5-7% based on value