MUMBAI: After almost a decade, BMC increased property tax rates by up to 15% in bills raised for over 9 lakh properties for 2025-26. The bills were raised this month.
"There is a maximum 15% increase, but it could be less depending on the ready reckoner rate of that locality," said an official. RR rates determine property valuations for stamp duty and taxation. A civic official said the recent rise in RR rates was factored in while increasing the tax.
However, around 3.6 lakh residential properties properties which measure under 500 sq ft (carpet area) remain exempted from property tax, as per a 2017 state directive.
With BMC increasing property tax rates by up to 15%, a residential unit with a tax of Rs 10,000 will now have to pay Rs 11,500. Residents, however, argue that the hike is significantly higher in certain areas than the 15% figure claimed by BMC.
The last hike in property taxes occurred in 2015-16. BMC was supposed to revise rates in 2020, as per the norm of a review every five years.
However, due to the pandemic, the decision was stalled. Subsequent political developments in the state put the move on the backburner. In 2024, the corporation stated that 2025 would mark the completion of a full five-year cycle, making it a more appropriate time to revise rates.