For most buyers in Bangalore, the focus is usually on property price and home loan eligibility. But one of the biggest hidden costs is stamp duty and registration charges — mandatory government fees required to legally transfer property ownership.

In August 2025, the Karnataka government doubled the property registration fee from 1% to 2%. With cess and surcharge added, the total transaction cost now reaches approximately 7.5–7.6% of the property value.

This guide explains the updated stamp duty and registration charges in Bangalore (2025), how they work, and how Owne’s calculator and legal support ensure full transparency.

What is Stamp Duty?

Stamp duty is a state-imposed tax on the transfer of property. It is calculated on the higher of:

• The declared sale value
• The government’s guidance value (minimum valuation fixed per locality)

Without paying stamp duty, a Sale Deed cannot be registered and ownership has no legal standing.

Stamp Duty & Registration Charges in Bangalore (2025)

Up to ₹20 lakh
• Stamp duty: 2%
• Registration charges: 2%

₹21–₹45 lakh
• Stamp duty: 3%
• Registration charges: 2%

Above ₹45 lakh
• Stamp duty: 5%
• Registration charges: 2%

For most apartments priced above ₹45 lakh, buyers now pay 5% stamp duty + 2% registration + ~0.6% cess/surcharge. Total: approximately 7.6%.

Example Calculation

Property Value: ₹1 crore flat in Sarjapur

Stamp Duty (5%) = ₹5,00,000
Registration (2%) = ₹2,00,000
Cess/Surcharge (~0.6%) = ~₹60,000

Total Charges = ₹7.6 lakh

Buyers must plan for this cost in addition to the down payment and home loan.

Cess & Surcharge Breakdown

In Bangalore, the following levies apply:

• BBMP/BDA cess = 10% of stamp duty
• Surcharge = 2–3% depending on property type
• Minor documentation/legal fees

These smaller add-ons collectively increase the effective transaction cost.

Exemptions & Deductions

• Affordable housing (<₹45 lakh): Lower stamp duty of 2–3%
• Gift deeds to family: Reduced fees
• Women buyers: No special rate currently in Karnataka
• Income Tax (Section 80C): Up to ₹1.5 lakh of stamp duty can be claimed in the year of payment

Mistakes Buyers Commonly Make

• Not budgeting for stamp duty and facing shortage at registration
• Under-reporting sale price (illegal and penalized)
• Ignoring guidance value — duty applies on whichever is higher
• Postponing stamp duty payment — deed is invalid without it

Guidance Value in Bangalore

Guidance value is the government’s minimum property valuation for each locality. Duty is calculated on the higher of guidance value or sale value.

Example:
If you purchase for ₹80 lakh but guidance value is ₹85 lakh, stamp duty is computed on ₹85 lakh.

How Owne Helps Buyers

Owne integrates full clarity into the buying process:

• Stamp Duty Calculator updated for 2025 rates
• Guidance value benchmarking for each locality
• Upfront cost breakdown for buyers
• Registered tri-party agreements aligned with Karnataka regulations

This ensures no last-minute surprises and complete compliance.

Case Study: Buyer in Bangalore

Anita planned to buy a ₹90 lakh 2BHK in Whitefield.

Broker Route: She was informed only about the property price. At registration she discovered an additional ₹6.8 lakh in charges and had to arrange emergency funds.

Owne Route: Owne’s calculator showed the exact breakdown:
Stamp duty ₹4.5 lakh + registration ₹1.8 lakh + cess ₹54,000.
She budgeted correctly and completed the registration smoothly.

Transparency made the difference.

FAQs

1. Has stamp duty increased in Karnataka?
Stamp duty remains the same. The registration fee increased from 1% to 2% in August 2025.

2. Who pays stamp duty — buyer or seller?
The buyer, unless contract specifies otherwise.

3. Can NRIs save on stamp duty?
No. Rates are the same for NRIs and residents.

4. Is stamp duty refundable?
Partially, if cancellation happens before registration.

5. Can stamp duty be claimed under Income Tax?
Yes, up to ₹1.5 lakh under Section 80C.

Conclusion

Due to the 2025 update, buying property in Bangalore now comes with 7–8% additional government charges. For a ₹1 crore home, this means nearly ₹7.5 lakh extra.

Owne simplifies the process by:

• Providing accurate stamp duty estimates
• Ensuring compliance with Karnataka regulations
• Preventing undervaluation risks
• Offering a smooth, transparent registration process

Planning to buy property in Bangalore? Use Owne’s updated Stamp Duty Calculator to budget correctly before committing.