Property Tax Calculator
Estimate annual municipal property tax from the annual rental value and an editable tax rate.
Formula last reviewed 4 August 2026 · How we verify our calculators
Estimated annual property tax
- Per month (approx)
- ₹2,000
Updates live as you type
Frequently asked questions
This tool uses a simplified Annual Rental Value (ARV) method: tax = ARV × rate. Many cities use this, while others use capital-value or unit-area systems.
ARV is the estimated yearly rent a property could fetch, as assessed by the municipal body. It is the base for tax in ARV-based cities, not the market price.
Property tax rates differ widely between municipal corporations and by property usage, so there is no single national figure. Enter your city’s rate for a useful estimate.
Not necessarily. Real bills include zone factors, age and usage rebates, and method differences. Treat this as a planning estimate and check your municipal portal for the exact amount.
Not what your property would fetch — what the city says it would
An ARV of ₹1,20,000 at a 20% tax rate multiplies out to an annual property tax of ₹24,000, or ₹2,000 a month spread evenly. But that ARV — Annual Rental Value — is the municipality's own *assessed* estimate of what your property could rent for, not what it would actually fetch on the open market today. Municipal assessments often lag behind real rents, sometimes by a wide margin, which is one reason a calculation like this one can land noticeably off from an actual bill.
One formula among several, deliberately simplified
This calculator uses the ARV method: tax = ARV × rate. It's genuinely how some Indian cities compute property tax, but far from all of them — others use capital value (a percentage of market value) or unit area (a rate per square foot, varying by zone), frequently layered with rebates for property age, owner-occupation or paying on time. Because tax rates and formulas both vary meaningfully by city, this is intentionally a simplified ARV-based estimator, not a replica of any one municipality's exact calculation — the tax rate field is left fully editable specifically so you can substitute your own city's actual rate.
What this number is genuinely good for
Treat the result as a budgeting input, not a bill preview: useful for folding annual property tax into ownership costs alongside maintenance and insurance so it doesn't arrive as a yearly surprise, but not a substitute for checking your municipal portal before relying on an exact figure. For investment decisions specifically, pair this with the rental yield calculator to see net return once property tax and other recurring expenses are subtracted from rent collected — gross rental income alone tends to overstate what a property actually returns.