Property tax is a tax charged by your local municipal corporation on any property you own - whether it's residential, commercial, or land. Unlike income tax which is paid to central and state governments, property tax is paid to your city's municipal corporation. This tax funds local infrastructure like roads, water supply, street lighting, and other civic amenities in your area. Every property owner needs to pay this annually to avoid penalties and interest.
For FY 2025-26, property tax calculation varies by city and property type. Most cities calculate tax based on property's built-up area, age of property, property type (residential vs commercial), location, and annual rental value. Residential properties typically pay lower rates than commercial properties. Self-occupied houses get some exemptions or lower rates compared to rented properties. Many municipal corporations also offer rebates for timely payment and for properties with rainwater harvesting, solar panels, or other green initiatives.
Our property tax calculator helps you estimate the annual tax you need to pay on your property. This is important for budgeting, especially if you're planning to buy a property - you need to factor in property tax along with maintenance, water, electricity charges. If you have rental income from property, property tax is fully deductible from that income. This reduces your income tax liability on rent received.
Property tax is separate from income tax on property. If you're earning rent from property, that rental income gets added to your total income and taxed as per your tax slab. However, you can deduct property tax, insurance premium, maintenance charges, and home loan interest paid from rental income. Use our rental income tax calculator to see your complete tax liability on property ownership including both municipal tax and income tax.
Choose between residential, commercial, industrial, or vacant land
Select from 8 major Indian cities with different tax rates
Provide property value, area, age, and floor information
Get detailed breakdown of property tax and exemptions
Property tax is typically due annually, with payment deadlines varying by city. Most cities offer quarterly or half-yearly payment options. Late payments attract penalties of 2% per month and interest charges.
Property tax is calculated using either the rental value method or the capital value method. It considers factors like property value, built-up area, age, floor number, and property type. Additional charges include water tax, sewerage tax, and education cess.
Yes, various exemptions are available for senior citizens (10%), women property owners (5%), disabled persons (15%), and first-time homebuyers. Green buildings and properties with solar panels may also qualify for additional exemptions.