Table of Contents:

  • Introduction
  • Types of Property Tax
  • How Property Tax is Calculated
  • How to Pay Property Tax Online
  • Conclusion


Property tax is a levy imposed by the government on owners of real estate within its jurisdiction. In India, property tax is an essential source of revenue for local bodies like municipal corporations and municipal councils. Understanding the nuances of property tax is crucial for every property owner to ensure compliance with the law and to contribute to the development and maintenance of local infrastructure.

Types of Property

Annual Rental Value (ARV) Tax: This is the most common type of property tax in India. It is based on the annual rental value of the property, which is determined by the municipal authorities. The tax rate is applied to this value to calculate the property tax.

Capital Value-based Property Tax: Some municipalities have shifted from the ARV system to a capital value-based system. Under this system, the tax is calculated based on the current market value of the property.

Unit Area Method (UAM): This method determines property tax based on the built-up area or the carpet area of the property. The property is divided into units, and each unit is assigned a specific rate. The total tax is then calculated by multiplying the number of units by the rate.

Site Value Tax: This tax is based on the market value of the land rather than the value of the property built on it. It encourages efficient use of land and discourages holding land for speculative purposes.

Vacant Land Tax: Some municipalities levy a tax on vacant land to encourage landowners to develop or utilize their land effectively. The tax rate may increase progressively for properties left vacant for an extended period.

Property Tax on Special Properties: Certain types of properties, such as commercial properties, industrial properties, vacant plots, and rented properties, may be subject to specific property tax rates or additional taxes.

Property Tax on Government Properties: Properties owned by government agencies or entities may also be subject to property tax, although in some cases, they may be exempt or subject to reduced rates.

Properties for Sale in Hyderabad

How Property Tax is Calculated

The calculation of property tax in India varies from one municipal corporation or council to another. However, the basic formula for calculating property tax typically involves the following steps:

Assessment of Property: The local authority assesses the property based on factors like its size, location, type, age, amenities, and usage.

Determination of Property Rate: After assessing the property, the local authority assigns a rate per square foot or square meter depending on the unit of measurement used in the area.

Calculation of Taxable Value: The taxable value is calculated by multiplying the assessed area of the property by the applicable rate per unit.

Application of Tax Rate: Once the taxable value is determined, it is multiplied by the tax rate set by the local authority to arrive at the final property tax amount.

How to Pay Property Tax Online:

Paying property tax online has become increasingly convenient in India due to the digitization efforts of municipal corporations and councils. Here’s a step-by-step guide:

Visit the Official Website: Go to the official website of your local municipal corporation or council.

Locate the Property Tax Section: Navigate to the property tax section on the website. You may find it under the ‘Services’ or ‘Online Services’ tab.

Register/Login: If you’re a first-time user, you’ll need to register on the website using your property details. If you’re already registered, simply log in using your credentials.

Enter Property Details: Enter your property details such as property identification number (PID), assessment number, or owner details to retrieve your property tax dues.

Verify and Confirm: Verify the details of your property tax assessment and confirm the amount payable.

Select Payment Method: Choose your preferred payment method from options like net banking, credit card, debit card, or digital wallets.

Make Payment: Follow the prompts to complete the payment process securely. Upon successful payment, you’ll receive a confirmation receipt.

Save Receipt: Save or print the payment receipt for your records. It serves as proof of payment.

Frequently Asked Questions (FAQs):

Q1. What factors influence property tax calculation? A1. Property tax calculation is influenced by factors such as property type, size, location, amenities, usage, and age.

Q2. Are there any exemptions available on property tax? A2. Yes, certain properties like educational institutions, religious buildings, and government-owned properties may be exempt from property tax. Additionally, senior citizens and disabled individuals may be eligible for concessions.

Q3. How often do property tax rates change? A3. Property tax rates may change periodically based on decisions made by the local governing bodies. Property owners are typically notified of any changes in rates.


Property tax is a significant obligation for property owners in India, and understanding its intricacies is essential for compliance and financial planning. By familiarizing yourself with the types of property tax, its calculation methodology, and the convenient online payment process, you can ensure timely payment and contribute to the development of your local community. Embracing digital platforms for property tax payment not only saves time and effort but also promotes transparency and accountability in the taxation system. So, stay informed, stay compliant, and contribute to the growth of your city through timely property tax payments!