Property Tax
Annual tax levied by municipal corporations on property ownership, based on guidance value, built-up area, usage type, and location. Payable to BBMP (Bangalore), BMC (Mumbai), GHMC (Hyderabad), etc.
What is Property Tax?
Property tax is an annual levy imposed by local municipal bodies on the ownership or occupation of real estate. It is calculated based on the Annual Rental Value (ARV) or Capital Value System (CVS) depending on the state, and factors in the property size, location, usage (residential/commercial), and age of the building. Property tax is the primary source of revenue for urban local bodies (ULBs) and funds civic infrastructure — roads, drainage, streetlights, parks.
How Property Tax is Calculated by City
Bangalore (BBMP — Annual Value System): Property tax = Guidance value (per sqft) × Built-up area × 20% × Usage factor × Age factor. For a typical 1,000 sqft apartment in a mid-range locality with a guidance value of Rs 5,000/sqft, annual tax might be Rs 5,000–Rs 10,000 per year. BBMP provides an online calculator at bbmp.gov.in.
Mumbai (BMC — Capital Value System): Property tax based on the capital value of the property (determined by BMC) multiplied by a tax rate. Mumbai property taxes are generally higher as a percentage of property value than Bangalore.
Hyderabad (GHMC): Based on the plinth area, monthly rental value, and locality category. GHMC has four-year assessment cycles.
Why Property Tax Matters for Buyers
- Outstanding property tax dues transfer with the property — verify the seller has no arrears before purchase
- Property tax receipt is required for Khata transfer (in Karnataka) and for society formation
- Up-to-date property tax payment is evidence of uncontested ownership — properties with long tax arrears may have title complications
- Regular payment builds a formal ownership record with the local authority
How to Check and Pay
All major ULBs now offer online property tax payment and receipt download:
- BBMP: bbmp.gov.in — search by SAS base number or property address
- GHMC: ghmc.gov.in — payment by PTIN number
- BMC: mcgm.gov.in — search by property ID
How Brickplot Uses Property Tax Data
For completed projects, Brickplot verifies that the builder has obtained property tax assessments for all units (required for Khata issuance in Karnataka). Projects where tax assessment is delayed post-OC are flagged in our Post-Possession Services tracking, as this affects buyers ability to complete Khata transfer.
Related Terms
- Khata Certificate — Karnataka record linked to property tax assessment
- Stamp Duty — transaction-time tax (versus annual property tax)
Related terms
Brickplot verifies property tax disclosures on every reviewed project as part of the independent 11-axis score. No builder commissions. No editorial override.