Property Registration in Karnataka to Get Costlier from August 31
Starting August 31, property registration in Karnataka will become more expensive as the state government has decided to double the registration fee from 1% to 2%. This move comes amid revenue shortfalls in the Department of Stamps and Registrations.
Property RegistrationReal EstateKarnatakaRegistration FeeRevenue TargetsReal EstateAug 30, 2025
The move comes as the Department of Stamps and Registrations struggles to meet its revenue targets for two consecutive years. In 2024-25, the department collected only ₹22,500 crore against a target of ₹26,000 crore. The shortfall continued in the first quarter of 2025-26, with collections falling short by 35% against the proportional target of ₹28,000 crore.
Until now, property transactions in Karnataka attracted a total levy of 6.6%—comprising 5% stamp duty, 1% registration fee, 0.5% cess, and 0.1% surcharge. With the revised registration fee of 2%, the overall cost will rise to 7.6% for buyers and sellers from August 31.
Mullai Muhilan M.P., Inspector-General of Registration and Commissioner of Stamps, said Karnataka continues to remain among the lowest in terms of transaction charges compared to neighbouring States. “In Tamil Nadu, for instance, the effective rate is 11%,” he pointed out.
The latest order also revises fees for Joint Development Agreements (JDAs) and General Power of Attorney (GPAs) linked to JDAs, doubling the registration fee from 1% to 2%. Officials expect this to have a significant impact, given that JDAs usually involve large tracts of land, directly affecting the real estate sector.
The realty market in Karnataka has already been sluggish over the past few quarters. Builders and developers argue that the slowdown is partly due to the mandatory e-Khata requirement for transactions, which they describe as a major bottleneck. They maintain that increasing registration fees will not solve the issue of revenue shortfalls and could further dampen buyer sentiment.
Frequently Asked Questions
When will the new property registration fees take effect in Karnataka?
The new property registration fees will take effect from August 31.
What is the new registration fee for property in Karnataka?
The new registration fee for property in Karnataka will be 2% of the property value, up from the previous 1%.
Why has the Karnataka government decided to increase the registration fee?
The Karnataka government has decided to increase the registration fee to meet revenue targets, as the Department of Stamps and Registrations has been struggling with shortfalls for two consecutive years.
What is the total levy on property transactions in Karnataka now?
The total levy on property transactions in Karnataka will now be 7.6%, comprising 5% stamp duty, 2% registration fee, 0.5% cess, and 0.1% surcharge.
How does Karnataka's property transaction charge compare to other states?
Karnataka continues to remain among the lowest in terms of transaction charges compared to neighboring states. For example, the effective rate in Tamil Nadu is 11%.
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