Property Tax Guide: Mumbai
The property taxes in Mumbai were earlier based on the Rateable Value System. However, the Brihanmumbai Municipal Corporation (BMC) now follows the Capital Value-Based Property Assessment and Tax Calculation System. Unlike other cities, the property tax in Mumbai depends on the market value of the property. Service charges are levied as a percentage of property tax which is primarily responsible for the increase in current tax rate to 225% for non-residential properties and 105% for residential properties, subject to the connection of water-meter to the property.
The below guide gives a detailed insight on property taxes in Mumbai and how one can go about paying this tax.
Calculation of Property Tax
Since the property tax in Mumbai depends on the capital value of the property, it indirectly depends on the stamp duty ready-reckoner which is revised every year by the government. Moreover, since the capital value of the property changes depending on the changes in categories such as age, construction and user, the weights of these categories are used while calculating the capital of properties. Residential rates of the Government ready reckoner of the ward and zone in which the property is located should be used to calculate the market value of any property including offices, vacant land and industrial premises. The Ready Reckoner provides the rates of built-up area per Sq.Mtr, and the same is used for the carpet area.
The best and the most convenient way to calculate property tax in the city is to make use of the online calculator facilitated by the BMC website. You would require your Property Account No. to make use of this online tool. This number can be found on the upper portion of your Property Tax Bill.
Conversely, if you are keen on calculating the property tax amount manually, then you can make use of the following formula:
- Capital value of your property = Market value of the property x total carpet area x weights for type of construction x weights for age of the premise.
- Property tax due for the specific year = Capital value of the property x current property tax rate x weight for user category.
If you are not sure about weights of the different categories then the following information will be useful:
Weights for construction category
- Bungalows and RCC structures (with or without lift) are assigned with the weight factor of 1 unit
- Chawls and semi-permanent structures have 0.60 weight factor
- Vacant or under-construction land has 0.50 weight factor
Weights for user category
- Properties that are used as hotels and similar businesses are assigned with a weight factor of 4 units.
- Properties that are used for commercial purposes such as shops and offices have a weight factor of 3 units.
- A weight factor of 2 units is assigned to properties that have industries and factories on it.
- The weight factor of residential and charitable properties is 1 unit.
Weights for the age factor
- Properties that are constructed after the year 1985 have an age factor of 1 unit.
- Properties constructed between the year 1942 and 1985 have an age factor of 0.90.
- Properties and buildings constructed before the year 1945 have an age factor of 0.80.
The BMC website states that these weights can change without any prior notice, and hence it is highly recommended that one refers the BMC website before manually calculating the property tax.
New property system in Mumbai
The property tax once fixed cannot be revised for the next five years, even after which the increase is restricted to 40 % only. Property tax remains the same for tenanted as well as self-occupied properties. Depending on the use of property, the tax rate varies from 0.316 to 2.296 %.
Where to Pay the Property Tax
Online Payment: Undoubtedly, this is the easiest way to pay property tax. Visit the online payment portal of BMC. First click on the option ‘online services’, after which you have to select the option ‘Pay Property Tax.’ On selecting this option, you will be directed to a new page that would ask for your SAC number or home tax invoice number of past transaction. Once you input one of these numbers, you will be able to sign in for the payment. After signing in, you will be directed to a new page that will have the terms of agreement. You must accept the terms and conditions mentioned on this page following which you will be directed to a new page that will have a list of pending bills. You have to select the invoice that you intend to pay.
Complete the payment process and validate the whole process. Once the payment is validated, the system would generate an invoice in PDF format. You must save and print the invoice for record.
Manual payment: If you do not have the SAC number or if you prefer to pay directly then you can pay at the nearest office of Assistant Revenue Officer in your area. You can also pay at any of the BMC help centers. In the link are the addresses of Centers in Mumbai where one can pay the property tax directly at
Moreover, one can even check the control room of BMC by calling the following numbers: 108, 022-22269472 , 022-22694725 , 022-22694727 , 022-22704403 , 022-24114000 – One can confirm the address before going to make direct payments at the above mentioned addresses.
When to pay Property Tax
The last date for the payment of property tax in Mumbai is 30th June. However, the BMC can sometimes change or extend the date as it did in 2013 and hence it is best to check on the BMC website. In the year 2013, the last date for property tax payment was 30th September.
Consequences of non-payment or delay in payment of Property Tax
In the case of failure or delay in property tax payments, the property owner will be liable to pay a penalty of 2% per month on the outstanding property tax to BMC.
