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.
Twenty-four thousand a year on a one-twenty annual rental value
An annual rental value of ₹1,20,000 at a tax rate of 20% produces property tax of ₹24,000 a year — about ₹2,000 a month.
Property tax = annual rental value × tax rate
The formula is simple. Everything difficult about Indian property tax is that the method of arriving at the assessable value differs by municipality, and there is no national standard.
The three assessment systems
Annual Rental Value (ARV) — used by Chennai, Hyderabad and several others. Tax is levied on the rent the property could reasonably fetch in a year, whether or not it is actually let. The municipality publishes rates by locality and property type.
Capital Value System (CVS) — used by Mumbai. Tax is a percentage of the property's market value, derived from the ready reckoner rate, with weightings for construction type, age and usage.
Unit Area Value (UAV) — used by Delhi, Bengaluru, Kolkata and others. Tax is calculated as built-up area × a per-square-foot unit rate for the zone × factors for usage, occupancy, age and construction type.
The same physical property can therefore attract quite different tax in two cities, and comparisons across municipalities are rarely meaningful.
The factors that adjust the base
Whichever system applies, similar modifiers appear:
Usage — residential rates are substantially lower than commercial or industrial. Running a business from a residential property can, if declared, change the classification.
Occupancy — several municipalities charge more for let-out property than for self-occupied.
Age — older buildings frequently attract a depreciation allowance.
Construction type — RCC, semi-permanent and temporary structures are rated differently.
Amenities — lifts, parking, swimming pool and similar features can add a loading.
Rebates and penalties
Early payment rebates are common and worth the effort — typically 5–15% for paying within the first month or quarter of the financial year. On a ₹24,000 bill that is ₹1,200–₹3,600 for doing something you must do anyway.
Concessions frequently exist for senior citizens, ex-servicemen, persons with disabilities, and properties with rainwater harvesting or solar installations.
Penalties for late payment usually run 1–2% per month as simple interest, and arrears compound into significant amounts. Unpaid property tax also attaches to the property rather than to the person, so it surfaces during a sale and must be cleared before transfer.
Why it matters beyond the bill
A property tax receipt is one of the standard documents in an Indian property transaction. It is requested for sale and transfer, for home loan processing, for building plan approvals, and it serves as supporting evidence of possession. Arrears discovered late in a sale are a routine cause of delayed registration.
Mutation — updating the municipal records to show the new owner after a purchase or inheritance — is a separate process from registration and is frequently neglected. Until it is done, the tax demand continues to issue in the previous owner's name.
Reading the result
This is an estimate from an assumed rate and value. Your municipality's own portal is authoritative, and most now publish a calculator using their specific formula along with online payment.
Note that property tax is deductible from rental income under the Income Tax Act, but only in the year actually paid, and only for let-out property.
Common mistakes
Assuming one city's method applies elsewhere. ARV, CVS and UAV give different answers.
Missing the early-payment rebate. It is free money for meeting a deadline.
Neglecting mutation after purchase. Demands keep issuing to the old owner.
Letting arrears accumulate. They attach to the property and block a sale.
Not declaring a change of use. Commercial use of a residential property is assessed differently.