Stamp duty on a rent agreement in Karnataka: 0.5%, capped at ₹500
By Giridhar Reddy, founder of Domvio, Bengaluru
Published
In Karnataka, a residential rent agreement of up to one year pays stamp duty of 0.5% of the average annual rent plus any advance, premium or fine, capped at ₹500. Any flat in Bengaluru renting for more than about ₹8,334 a month therefore pays exactly ₹500. Leases longer than a year lose the cap and pay 1% or more.
This is a sample for general information, not legal advice. Laws differ by state. It has not yet been reviewed by a lawyer. Have a lawyer examine it for your situation before you use or rely on it.
Karnataka stamp duty calculator
This calculator needs JavaScript. By hand: Karnataka charges 0.5%, capped at ₹500 on average annual rent, plus any advance, premium and fine for an 11-month agreement.
Lease stamp duty rates in Karnataka
| Term of the lease | Stamp duty | Registration fee |
|---|---|---|
| Up to 1 year, residential | 0.5% of average annual rent + advance + premium + fine, maximum ₹500 | ₹5 per ₹1,000 or part, minimum ₹200 |
| Up to 1 year, commercial or industrial | 0.5% of the same, with no cap | ₹5 per ₹1,000 or part, minimum ₹200 |
| Over 1 year, up to 10 years | 1% of average annual rent + advance + premium + fine | ₹5 per ₹1,000 or part, minimum ₹200 |
| Over 10 years, up to 20 years | 2% of the same | ₹5 per ₹1,000 or part, minimum ₹200 |
| Over 20 years, up to 30 years | 3% of the same | ₹5 per ₹1,000 or part, minimum ₹200 |
| Between family members | ₹5,000 (BMRDA, BBMP, city corporations), ₹3,000 (city and town councils), ₹1,000 elsewhere | ₹1,000 |
The cap is the reason Karnataka is the cheapest of the states we cover for an ordinary 11-month agreement. Shops and offices do not get it: the same 0.5% applies, without a maximum. Source: Karnataka IGR fee table.
Why most Bengaluru agreements pay exactly ₹500
0.5% of a year's rent reaches ₹500 at a rent of about ₹8,334 a month. Every quoted 2BHK rent in the table below is well above that, so the duty is the same ₹500 in Whitefield as on Mysore Road. Only a room or a small flat at a lower rent pays less: at ₹6,000 a month the duty is ₹360.
| Area | Monthly rent | Duty at the lower rent | Duty at the higher rent |
|---|---|---|---|
| Mysore Road | ₹20,000 to ₹26,000 | ₹500 | ₹500 |
| Electronic City | ₹20,000 to ₹31,000 | ₹500 | ₹500 |
| Thanisandra Main Road | ₹28,000 to ₹42,000 | ₹500 | ₹500 |
| Whitefield | ₹30,000 to ₹46,000 | ₹500 | ₹500 |
| Sarjapur Road | ₹33,000 to ₹46,500 | ₹500 | ₹500 |
Because of the cap, the long argument about whether a refundable deposit counts as an "advance" rarely changes the bill for a residential agreement of up to a year. It does matter for longer leases and commercial property, where there is no cap. Our rent agreement format guide covers that question and the Karnataka High Court ruling on it.
Leases longer than 11 months: no cap
Once the term goes past a year, the rate doubles to 1% and the ₹500 cap no longer applies. The lease must also be registered, under section 17 of the Registration Act. For a two-year lease at ₹30,000 a month, the duty is ₹3,600 (1% of ₹3,60,000) and the registration fee is ₹1,800.
That is why most Bengaluru owners sign an 11-month agreement and renew it. At ₹30,000 a month, two 11-month agreements cost ₹1,000 in duty and no registration fee, against ₹5,400 for a registered two-year lease. The registered lease does give both sides more certainty; a lawyer can tell you which suits you.
Registration fee in Karnataka, and the 2025 change
The IGR table lists the registration fee on a lease as ₹5 for every ₹1,000 or part, with a minimum of ₹200. A notification of 29 August 2025 raised several registration fees from 31 August 2025 (notification); it names articles of the fee table, and we could not confirm from it whether the lease fee changed. Check the fee shown on Kaveri before you book a slot.
How to pay stamp duty on a rent agreement in Karnataka
Work out the duty
Use the calculator above: 0.5% of the annual rent, never more than ₹500 for a home let for up to a year.
Buy e-stamp paper or a digital e-stamp
Buy it in the name of the party paying the duty, for the property's district. Karnataka has notified rules for digital e-stamps (Digital e-stamp rules).
Print and sign the agreement on it
Both sides sign, with two witnesses. Keep the original with the person who paid for the stamp, and a copy with the other.
Register only if the term is over a year
Book a slot and pay the registration fee on Kaveri. An 11-month agreement does not need this step.
Then: rent every month
Bengaluru landlord? Rent reminders on WhatsApp
Domvio reminds each tenant on WhatsApp three days before rent is due, with a UPI link to your own account, and sends a PDF receipt when they pay. See Domvio for Bangalore landlords.
Sources
- Karnataka Department of Stamps and Registration: stamp duty and registration fees
- Karnataka registration fee notification, 29 August 2025
- Registration Act, 1908, section 17
We last read these on 20 October 2026. Rates change by notification, so check the official page before you pay.
Once the agreement is signed, Domvio sends your tenant a WhatsApp rent reminder every month, with a UPI link to your own account and a PDF receipt when they pay. Free during early access.
Try Domvio freeFrequently asked questions
What is the stamp duty on an 11-month rent agreement in Karnataka?
0.5% of the average annual rent plus any advance, premium or fine, with a maximum of ₹500 for a residential property. Above about ₹8,334 a month, it is simply ₹500.
What stamp paper value is needed for a rent agreement in Bangalore?
For most homes, ₹500. Work it out first with the calculator, because a room at a low rent can need less, and a lease longer than a year needs more.
Is registration compulsory for a rent agreement in Karnataka?
Not for 11 months. A lease of more than a year must be registered, and then the registration fee is ₹5 for every ₹1,000 of the value, minimum ₹200, as listed by the IGR.
Is stamp duty in Karnataka charged on the security deposit?
The official table adds advance to the base, and whether a refundable deposit counts is disputed. For a home let for up to a year it rarely matters, because the ₹500 cap is reached on rent alone.
Stop chasing rent every month
Domvio reminds your tenants on WhatsApp, takes rent straight to your UPI ID and sends PDF receipts automatically. Free during early access.