How taxes and fees add 7-12% to your property purchase cost
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Subscribe to enjoy similar stories. Buying Property? Don’t Forget These Extra Costs That Can Add 7-11% to Your Budget Think you’ve nailed your property budget? Think you’ve accounted for every expense in buying your dream home? Think again—overhead costs like taxes and government fees could add a hefty 7-12% to your final bill. The biggest cost is that of stamp duty, a tax levied by state governments on the sale of property.
Currently, the highest stamp duty is levied by Meghalaya government at 9.9% of the property value, followed by Kerala and Madhya Pradesh at 8% and 7.5%, respectively. Among the major cities, Hyderabad has the highest stamp duty of 7%. In Gurgaon too, male buyers have to pay 7% in stamp duty, whereas the rate is 5% for female owners and 6% in joint ownership.
Mumbai and male buyers in Delhi pay 6%. Female buyers in Delhi enjoy a lower stamp duty of 4%. The registration fee, another mandatory government charge, varies across states and ranges from ₹15,000 to 3% of the property value.
In addition to the fixed charges of stamp duty and registration fees, buyers often incur various miscellaneous costs. While not mandatory, these expenses arise from administrative processes and paperwork typically required during the property purchase. Also read: So you’re looking to buy a new home. Should you think like SRK or Warren Buffett? Mint breaks down the overhead costs involved in property purchase and lists out government taxes in five major metro cities–Delhi, Gurgaon, Bangalore, Mumbai and Hyderabad (see grfx).
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