Karnataka Doubles Property Registration Fees: How Much More Will Homebuyers Spend? Estimated Calculation Here

Starting August 31, 2025, homebuyers in Karnataka will face a notable increase in property registration costs as the government has doubled the registration fee from 1% to 2% of the property's value. This hike directly affects the amount of money a buyer needs to arrange before closing the deal, potentially impacting affordability for many buyers.

Karnataka Doubles Property Registration Fees: How Much More Homebuyers Will Spend?

For instance, if a buyer purchases a property worth Rs 50 lakh, previously the registration fee at 1% would have been Rs 50,000. Now, with the revised 2% fee, the registration charges alone will be Rs 1 lakh.

Adding the stamp duty of 5% (Rs 2.5 lakh) and the additional cess of about 0.6% (around Rs 30,000), the total registration-related expenses will amount to approximately Rs 3.8 lakh. This is a noticeable increase compared to the earlier total of around Rs 2.3 lakh, which could affect the buyer's budget and loan calculations.

Increased Total Property Transaction Costs in Karnataka

Previously, homebuyers in Karnataka were required to pay a combined total of 6.6%, which included 5% stamp duty, a 1% registration fee, and an additional 0.6% in various duties and cess. With the recent increase in the registration fee, the overall cost has now risen to 7.6%, marking an escalation in the total expenses associated with property transactions in the state.

This change might also influence the overall real estate market dynamics in Karnataka. Some buyers may delay or reconsider their purchases due to the higher upfront costs, especially first-time buyers or those on tighter budgets.

Impact on State Revenue

On the other hand, the government's revenue from property transactions will increase, potentially allowing for improved infrastructure and public services, which could positively impact property values in the long term. It comes as a response to stagnant revenue growth from stamp duty and registration collections over the past two fiscal years. The state achieved Rs 22,500 crore in revenue for 2024-25 against a target of Rs 26,000 crore, with a current fiscal target set at Rs 28,000 crore.

In the first quarter of the current fiscal year, there was a significant shortfall of 35 percent in achieving revenue targets. This shortfall has prompted the government to adjust fees as part of its strategy to bolster state finances.

Karnataka Vs Other States in South India: Land Registration Costs in Kerala, Tamil Nadu, Telangana and Andhra Pradesh

Despite this hike, Karnataka's land registration costs remain the lowest in South India, according to the Stamps and Registration Department. With this change, the total cost of property registration in Karnataka will rise to 7.5 percent. This includes a five percent stamp duty and additional cess ranging from 0.6 to 0.65 per cent. Comparatively, Kerala's cost stands at 10 per cent, Tamil Nadu at nine percent, while Telangana and Andhra Pradesh match Karnataka at 7.5 percent according to data available on these states' official websites.