In short
Property tax in India is levied by the municipal corporation of your city, under a state municipal law, so the method, rates, rebates and due dates differ from city to city. There is no central property tax. In Chennai the tax is charged half-yearly with a 5% incentive (up to ₹5,000) for paying in the first 30 days. In Bengaluru the 2026-27 window gives a 5% rebate for paying in full from 1 to 30 April 2026. In Kolkata it is paid quarterly with a 5% rebate by the due date. Always use the figures on your own corporation’s bill and portal.
The cities compared
| City and authority | Basis of assessment (as published) | Payment calendar | Early-payment benefit |
|---|---|---|---|
| Bengaluru: Bengaluru City Corporation | Owner’s self-assessment return (Forms I to III by property type); the page does not state the formula | 2026-27: rebate window 1 to 30 April 2026; interest dates 1 June and 1 December 2026; penalty from 29 November 2026 | 5% rebate on the total if paid in full in one instalment; 2% a month interest on arrears |
| Chennai: Greater Chennai Corporation | Annual rental value from plinth area and street rate; tax is 12.40% of the annual value in the corporation’s worked example | Half-yearly: 1 April to 30 September, 1 October to 31 March | 5% on the general tax, up to ₹5,000 per assessment, if the full amount is paid in 30 days (1 to 30 April, 1 to 30 October); 1% simple interest a month after the half-year |
| Kolkata: Kolkata Municipal Corporation | Unit Area Assessment: a base value per square foot for the block, times property factors, covered area and a tax rate | Four quarterly instalments, with a presentation date and a last rebate date set for each ward group each year | 5% rebate if paid by the due date; an extra 5% on each of the last three quarters if all are paid by the first quarter’s date |
| Ahmedabad: Ahmedabad Municipal Corporation | General tax = carpet area (sq. m) × rate × four factors (location, age, use, occupancy); water and conservancy taxes added | Not read | Not read |
| Delhi: Municipal Corporation of Delhi | Self-assessed return; the portal points to a “Property Tax Calculation Parameters” document and an office order of 19 April 2023 | Not read | 10% advance rebate if paid before 30 June of the financial year; 2% online rebate for residential property with tax up to ₹10,000 (portal) |
| Mumbai: Municipal Corporation of Greater Mumbai | Portal page not readable beyond its menu | Not read | Not read |
| Hyderabad: GHMC | Official portal refused access on 14 October 2026 | Not read | Not read |
Chennai: the working
The corporation publishes the steps. Monthly rental value is the area in square feet times the Basic Street Rate for the street and use; annual rental value is that times 12; 10% is treated as land value; 10% of the building value is deducted for maintenance; and the tax is 12.40% of the resulting annual value (the page’s illustration shows 135.40 for an area-and-rate product of 100). A 20% concession on monthly rental value applies to semi-permanent-roof buildings. Land with no building is taxed as vacant land. These steps rest on the Tamil Nadu urban local bodies law and rules cited on the page, and they apply only in Chennai.
Kolkata: the working
The Kolkata Municipal Corporation’s FAQ on the Unit Area Assessment gives the formula: annual tax = base unit area value of the block (₹ per sq. ft. per year) × five property factors (MF1 to MF5) × covered area (or vacant land area) × the tax rate percentage. The FAQ says the rate is meant to be a fixed percentage between 6% and 20% by category, and that the Howrah Bridge tax of 0.25% to 0.5% of gross tax continues in some wards. The FAQ dates from the introduction of the system, and the corporation’s 2023-24 fee schedule refers to both the “UAA System” and the “ARV System”, so some properties may still be on the older method. Check the rate on your bill.
Ahmedabad: the working
The corporation’s page gives the formula and the factor tables. Its rates “for 2025-26” are ₹20.80 per sq. m for residence and ₹35.36 per sq. m for non-residence; they are revised, so read the current year on the page. The location factor depends on the state’s land jantri value: from 0.60 for the lowest band to 1.60 for the highest. Flats carry a use factor of 0.70 and bungalows 1.50. Water tax and conservancy tax are added as a percentage of general tax (30% each for residential property).
How property tax links to income tax
For a let property, section 21(3) of the Income-tax Act, 2025 reduces the annual value by the municipal taxes the owner has actually paid in the tax year. For a self-occupied house the annual value is nil (section 21(6)), for up to two houses (section 21(7)). The interest deduction is covered in home loan tax benefits and the rent side for non-residents in NRI rental income tax.
What it costs
The tax itself is the cost, as set by your corporation. Fees for extracts are separate: for example, the Kolkata Municipal Corporation’s 2023-24 fee schedule lists mutation of a simple case as nil and a certified copy of assessment figures at ₹500 to ₹2,000 depending on valuation. Mumbai’s portal offers services such as a no-dues or payment certificate, a change of billing name and address, and a request for reassessment.
Which professional to consult
The municipal ward or assessment office is the first stop for a bill you dispute. A property lawyer (advocate) enrolled with the State Bar Council can advise on an appeal or reassessment under the state municipal law. A chartered accountant can reconcile the tax with your return.
Frequently asked questions
Is property tax the same across India?
No. It is set by each municipal corporation under state law, with its own basis, rates and rebates.
Can I get a rebate by paying early?
In the cities I read, yes. Bengaluru gives 5% for payment in full from 1 to 30 April 2026; Chennai 5% up to ₹5,000 in the first 30 days of each half-year; Delhi 10% before 30 June; Kolkata 5% by the due date.
Who pays: owner or tenant?
Chennai’s page says the “owner or occupier” must file the return within thirty days of completion or occupation. Who bears the tax between landlord and tenant is for your lease.
Does an NRI owner pay the same?
The pages I read set no separate rule for non-resident owners. The tax follows the property.
How do I find my city’s current rate?
On your corporation’s property tax portal or bill. Rates and rebates change each year.
More guides on owning
Sources
- Self assessment of property tax: Form VI instructions, Bengaluru City Corporation (BBMP property tax system) (consulted 14 October 2026)
- Revenue Department, property tax, incentive and interest (Greater Chennai Corporation) (consulted 14 October 2026)
- Frequently asked questions on Unit Area Assessment system (Kolkata Municipal Corporation) (consulted 14 October 2026)
- Schedule of presentation and rebate dates of property tax bills, 2023-24 (Kolkata Municipal Corporation) (consulted 14 October 2026)
- Know your property tax calculation structure (Ahmedabad Municipal Corporation) (consulted 14 October 2026)
- Property tax return portal (Municipal Corporation of Delhi) (consulted 14 October 2026)
- BMC property tax citizen portal (Municipal Corporation of Greater Mumbai) (consulted 14 October 2026)
- The Income-tax Act, 2025, Act No. 30 of 2025 (Gazette of India, Extraordinary) (consulted 14 October 2026)