Stamp duty on rent agreements, state by state
Stamp duty on a rent agreement is a state levy, so there is no national rate. Each state applies its own percentage to its own base: some use total rent for the whole term, some use average annual rent, and some add all or part of the security deposit. The rate alone therefore tells you very little. This page sets out how the calculation is structured, gives the governing statutory article for the states where it can be pinned down, and tells you which instrument to check for your own state.
There is no national rate, and there cannot be one
Stamp duty on documents like rent agreements is a state subject. Some states have their own Stamp Act, such as the Maharashtra Stamp Act, 1958 and the Karnataka Stamp Act, 1957. Others operate through a state-specific Schedule 1A appended to the Indian Stamp Act, 1899, which is how Delhi works.
So anyone quoting you one figure for all of India is wrong, and any calculator that does not ask which state your property is in cannot be right. The amount also changes with the term of the agreement, which is why an 11-month tenancy and a three-year lease on the same flat attract different duty.
The rate is the easy half. The base is what catches people out
Every state picks a percentage, and every state separately decides what that percentage applies to. The second choice usually matters more than the first.
Three different bases are in common use. Some states charge on the total rent for the entire term, so a longer agreement mechanically costs more duty. Some charge on average annual rent, which flattens the term out. And some add the security deposit into the base, either in full or as a notional slice of it.
That last one is the big one. A state charging 0.25% on total rent plus a tenth of a large refundable deposit can easily collect more than a state charging 0.5% on annual rent alone. Comparing headline percentages across states tells you almost nothing useful.
On top of that, many states impose a minimum amount, a cap, or both, and registration fees are charged separately from duty. A state can look expensive on rate and come out cheap because the cap bites.
Where the governing provision can be pinned down
These four are stated with the statutory article that governs them, so you can verify each one against the Act itself rather than against a summary. Note how different the bases are.
| State | Governing article | Rate and base |
|---|---|---|
| Maharashtra | Article 36A, Maharashtra (Bombay) Stamp Act, 1958 | 0.25% for a leave and licence up to 60 months, charged on total rent for the term plus any non-refundable deposit plus 10% of the refundable deposit |
| Karnataka | Article 30, Karnataka Stamp Act, 1957 | For a residential lease up to one year, 0.5% of the consideration, subject to a maximum of ₹500 |
| Delhi | Article 35, Schedule 1A to the Indian Stamp Act, 1899 as applicable in Delhi | 2% of average annual rent for a term up to five years, rising in bands for longer terms |
| Gujarat | Article 30A, Gujarat Stamp Act, 1958 | Fifty paise for every hundred rupees, that is 0.5%, on the amount payable together with any fine, premium or money advanced |
Rates and bands are amended by state finance legislation, and the figures above are the provision as it stands at the time of writing. Verify against the current Schedule before you execute a document.
Which instrument governs your state
Rather than repeat rates I cannot verify against each state's current Schedule, here is what to look up. Search the instrument plus the word lease or licence and you will reach the operative article.
| State or territory | Instrument to check |
|---|---|
| Maharashtra | Maharashtra Stamp Act, 1958 — Articles 36 and 36A |
| Karnataka | Karnataka Stamp Act, 1957 — Article 30 |
| Gujarat | Gujarat Stamp Act, 1958 — Article 30A |
| Delhi | Schedule 1A to the Indian Stamp Act, 1899, as applicable in Delhi — Article 35 |
| Tamil Nadu | Indian Stamp Act, 1899 as applicable in Tamil Nadu — Article 35, with the state Schedule |
| Telangana and Andhra Pradesh | Indian Stamp Act, 1899 as applicable in the state — Article 31, lease |
| Uttar Pradesh | Indian Stamp Act, 1899 as applicable in Uttar Pradesh — Article 35 |
| West Bengal | Indian Stamp Act, 1899 as applicable in West Bengal — Article 35 |
| Rajasthan | Rajasthan Stamp Act, 1998, with the state Schedule |
| Haryana and Punjab | Indian Stamp Act, 1899 as applicable in the state — Article 35 |
| Madhya Pradesh | Indian Stamp Act, 1899 as applicable in Madhya Pradesh — Article 35 |
| Kerala | Kerala Stamp Act, 1959, with the state Schedule |
Each state's Registration and Stamps department publishes the current Schedule and usually a duty calculator. That department, not a third-party site, is the authority on what you owe today.
What going wrong actually costs
Under-stamping is not a technicality that gets waved through. Section 35 of the Indian Stamp Act, 1899 provides that an instrument which is unstamped or insufficiently stamped cannot be admitted in evidence or acted upon by a court or an arbitrator, and courts have applied that bar strictly.
The document remains a valid contract. It simply becomes something you cannot use to prove your case, which for a landlord pursuing arrears is the same thing as having nothing. The defect is curable by paying the deficiency with a penalty that can reach ten times the shortfall, so saving a few hundred rupees at signing is a poor trade.
Registration is a separate question from stamping, and separate again from whether the document was notarised. Paying the right duty does not register anything, and registration is compulsory for leases from year to year or for a term exceeding one year, with Maharashtra requiring it regardless of term.
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Stamp duty on rent agreements FAQ
What is the stamp duty on a rent agreement in India?
There is no single national rate, because stamp duty on documents is a state levy. Each state sets both a percentage and the base it applies to, which may be total rent for the term, average annual rent, or rent plus some or all of the security deposit, often with a minimum or a cap. Check your state's Stamp Act Schedule for the operative figure.
Why do two states with the same percentage charge different amounts?
Because the base differs. A state charging 0.25% on the total rent for the whole term plus a slice of the refundable deposit can collect more than a state charging 0.5% on average annual rent alone. The base, the term bands and any cap matter at least as much as the headline rate.
Is the security deposit included when calculating stamp duty?
It depends on the state and it is not settled everywhere. Maharashtra expressly brings in non-refundable deposits and 10% of a refundable deposit under Article 36A. In Karnataka the High Court has held that a security deposit is not money advanced for the purposes of Article 30(c). Where the deposit is large, get the point confirmed specifically.
Does an 11-month agreement attract less stamp duty?
Usually yes, because most states band duty by the term of the agreement and charge on the rent for that term. A shorter term means a smaller base or a lower band. The 11-month convention is primarily about avoiding compulsory registration, but it generally reduces duty as well.
Who pays the stamp duty on a rent agreement?
The Act fixes the duty on the instrument, not on a particular person, so who bears it is a matter of agreement between the parties and of local convention. It is commonly paid by the tenant, and in Maharashtra that is the usual practice for leave and licence, but you should write the allocation into the agreement rather than leave it to custom.
What happens if I pay too little stamp duty?
Section 35 of the Indian Stamp Act, 1899 prevents the document from being admitted in evidence or acted upon until the shortfall is made good. It can be cured by paying the deficient duty together with a penalty of up to ten times that amount, so the saving is illusory and the exposure is real.
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Provisions referred to
- The Indian Stamp Act, 1899 — Section 35 (instruments not duly stamped inadmissible in evidence)
- The Maharashtra (Bombay) Stamp Act, 1958 — Article 36A (leave and licence agreements)
- The Karnataka Stamp Act, 1957 — Article 30 (lease), and Karnataka High Court on Article 30(c) and security deposits
- Schedule 1A to the Indian Stamp Act, 1899 as applicable in Delhi — Article 35 (lease)
- The Gujarat Stamp Act, 1958 — Article 30A
- The Registration Act, 1908 — Section 17(1)(d) (leases requiring compulsory registration)
This is general information about Indian stamp law, not legal advice. Stamp duty rates, bases, bands and caps are set by each state and amended by state finance legislation, so figures here may not be current for your state today. The authority on what you owe is your state's Registration and Stamps department or a qualified lawyer. Confirm before you execute a document.