Legal Guide

Property Tax in India — How to Calculate and Pay Online

PropyMart · 2026

What is Property Tax?

Property tax is an annual levy by municipal bodies (municipal corporations, panchayats) on the owner of any land or building. Rates vary by city, usage type, and construction age.

How Property Tax is Calculated

ARV × tax rate

Most cities use Annual Rental Value (ARV) × tax rate. Some use capital value (CV) × rate. Delhi uses unit area system. Your municipality's website has a free self-assessment calculator.

Who Must Pay Property Tax?

The registered owner must pay, even if the property is rented out. Tenants are not liable for property tax — though some lease agreements try to pass this cost on. This clause is unenforceable against the municipal body.

Property Tax Exemptions

Exemptions apply to: properties used exclusively for worship, properties owned by senior citizens (partial exemption in many cities), charitable institutions, and agricultural land under municipal limits in some states.

Penalty for Non-Payment

12–24% penalty interest

Late payment attracts 12–24% annual penalty interest in most cities. Unpaid property tax can lead to property attachment and public auction — a risk no owner should take.

Pay Online via PropyMart

PropyMart links directly to municipal payment portals for 25+ cities. Pay property tax in under 2 minutes and download your receipt for your records.

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