Property tax in Mumbai

Property tax is levied on all real estate properties, such as residential apartments, buildings, commercial spaces, industrial units, and plots of land. Some exceptions are made for places of worship and public buildings, but in general, every privately owned property is subject to property tax. 

In Mumbai, the property tax is collected by the Municipal Corporation of Greater Mumbai (MCGM), the city's main civic body. As the municipal corporation of a large and teeming metropolis, the MCGM uses the revenue collected from property taxes for improving the city's infrastructure and projects such as providing street lights, repairing and widening roads, maintaining the drainage system, and constructing parks. Your Mumbai property tax gets ploughed back into improving your neighbourhood and ultimately increasing your property value.

How is my Mumbai property tax calculated?

Different states have varying formulas for property tax calculations. The Municipal Corporation of Greater Mumbai (MCGM) uses a specific system that depends on the capital value, the market value, the user category, and the current property tax rate.
The capital value of a property is determined by this formula –

Market value of the property as per ready reckoner x weight for the type of construction x total area x age of the building

Now, the property tax value is calculated as –
Capital value of property x property tax rate x weight assigned to the user category

The total property tax amount you must pay will be reflected in the bill sent to you. It is important to remember property tax is not imposed on houses less than 500 square feet in area, and houses with an area between 500 and 700 square feet are provided with a 60 per cent discount on the property tax value.

In the case of a new building or property, the application for property tax assessment must be made within 15 days of completion of the construction. The application must be accompanied by all the documents and construction permits specified by MCGM.

You can use the hypothetical property tax calculator on the MCGM website  for an approximate value.

How do I pay my property tax online?

You can pay your property tax offline at the nearest MCGM facility or the revenue office. You will need the 15-digit alphanumeric property account number printed on your bill to make the payment.

We now live in a digital era and making online payments a very convenient option. Here is how you can make your Mumbai property tax payment online

• To pay your MCGM property tax online, log on to the Citizen's Portal by clicking this : https://ptaxportal.mcgm.gov.in/CitizenPortal/#/taxCalculator
• If you do not have your property account number, you can search for it through the search option on the CVS panel. You can run the search using parameters such as your name, address, ward, or mobile number.
• You can now log in through the CVS panel with the property account number and enter the captcha.
• Now, you must update your KYC with your mobile number and email.
• Once you log in, you can pay the property tax by choosing the mode of payment, such as net banking, credit card, or digital wallet.
• If the payment is successful, you can download the receipt here.

How will I receive the bill and receipt?

The property tax bill will be sent to you by post. You can also check the amount online. The due date for paying property tax is 30 June of every year. If there is a delay in the payment, a penalty of 2% is imposed on the due amount. As a property owner, you must pay the tax on time to avoid the fine.

Conclusion

Paying your property taxes on time and maintaining records of the receipts is an important part of your responsibilities as a home owner. With the convenience of digital payments, this can be done quickly and effortlessly. The MGCM Citizen's Portal is easy to navigate and is very helpful in solving most property tax-related issues.