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There are various obligations that one has while owning property in Mumbai, and payment of property tax is one such obligation that is very important for you. If you have a residential flat, a commercial property, or an independent house, knowledge about the property tax system will definitely assist you in managing your expenses. Property tax in Mumbai is collected by the Brihanmumbai Municipal Corporation (BMC).
There are many people who are not clear about how the calculation of their tax payable is done, where the person will be able to get information regarding the outstanding balance, and how to make the payments without going to the municipal office. The positive aspect is that the BMC has provided the facility for online payment of the property tax. However, the amount payable might depend on various factors.
In this article, we are going to discuss the process of calculating the property tax in Mumbai, factors that affect your tax amount, and how to pay property tax online in Mumbai. This article includes details regarding how to verify your property tax bill, how to pay the property tax through the BMC official website, and how to save your payment receipts for the future. This article will be very helpful for both new and experienced property owners who reside in Mumbai.
How Is Property Tax Calculated In Mumbai?
The property tax assessment procedure in Mumbai follows a standard process established by the state. Before 2010, the Bill Collection and Assessment department of the BMC was levying taxes based on Annual Rateable Value or ARV. The municipal corporation has shifted to the Capital Value System to calculate the tax due from April 2010.
As per the new policy, the amount payable by the property owner is dependent on the market value as per the Stamp Duty Ready Reckoner rate chart as published in the government’s annual budget.
The basic formula for calculating the tax for a given property under the Capital Value System reads as:
Property Tax Value of Property × Applicable Tax Rate
For calculating the value of the real estate under the CV System, one would need to apply 6 different factors. The factors are:
Capital Value = Base Value x Total Built - Up Area x Age Factor x Building Type x Factor Floor x Factor Usage Factor
Where,
Components Included in Mumbai Property Tax
One of the most common complaints from property owners is that the final bill for their annual property tax is significantly higher than the capital value percentage. The demand notice issued by the municipal assessment department is a collective bill that includes all applicable taxes, cess, and charges.
General Tax
This is the primary tax collected by the municipal authority for the maintenance of civic amenities, roads, and other services provided in Greater Mumbai.
Water and Other Applicable Taxes
This component covers the maintenance cost of water treatment plants, pumps, and reservoir networks that provide water to the property.
Education-Related Components
This component covers the education cess and taxes levied for the maintenance of schools and educational institutions managed by the state government.
Sewerage and Other Charges
This component covers the maintenance and expansion cost of sewerage networks, drains, and septic tanks across the city.
Repair Cess and Its Applicability
This is applicable to old tenanted or ceded buildings in the island city, such as South Mumbai, Girgaon, Dadar, and Byculla, and is levied by the BMC and is transferred to the Maharashtra Housing and Area Development Authority (MHADA) for repairs and reconstruction work.
Why the Final Bill May Differ From the Basic Tax Amount
The final demand notice reflects a combination of cess and taxes, including general tax, water benefit tax, sewerage benefit tax, street lighting tax, fire prevention tax, tree protection tax, and more. As per the BMC guidelines, the final tax bill appears as a collective charge and not as a combination of individual taxes.
4. What is the capital value system for Mumbai property tax?
The Capital Value System (CVS) has been developed by the Brihanmumbai Municipal Corporation (BMC) in lieu of the old Rateable Value System. The motive behind this is to make the calculation of property taxes clear and more consistent. The property taxes are calculated in accordance with the capital value of the property, taking into account the location, carpet area, use, and mode of construction of the property, along with its respective tax rate.
| System Aspect | Old Rateable Value System (Pre-2010) | Current Capital Value System (Post-2010) |
| Primary Assessment Basis | Estimated annual rental income of the property. | Market value derived from official Stamp Duty Ready Reckoner (SDRR) rates. |
| Transparency Level | Subjective, often leading to valuation disputes and legal appeals. | Objective, mathematical formula based on public government benchmarks. |
| Value Revision | Revised arbitrarily or during tenancy changes. | Periodically updated based on revised Ready Reckoner publications. |
| Property Parameters | Primarily based on tenancy agreements and zonal estimates. | Factors in age, structural build quality, floor height, and specific usage. |
By introducing the Capital Value System, the civic body ensures that premium real estate in high-value commercial and residential pockets pays taxes based on its current market value while affordable housing units enjoy lower base valuation and lesser tax liabilities.
Mumbai Property Tax Due Date and Payment Frequency
The BMC has a fiscal year (April 1 – March 31 of the following calendar year). BMC property tax payments are billed on an annual basis and can be paid as a single installment or two bi-annual installments:
First Half Installment April – September The due date is June 30 of the active assessment year.
Second Half Instalment October – March The due date is December 31 of the active assessment year.
Rebates, Exemptions, and Early Payment Incentives
Penalty for Late Payment
Failure to clear the property tax Mumbai demand note by the stipulated statutory timeline attracts a 2% monthly penalty on the due balance that compounds monthly until the dues are settled.
How to check Mumbai property tax online
Checking your Mumbai property tax bill online is an easy process, and it can be done by simply logging into the official MyBMC web portal. In Mumbai, property owners can view their current property tax bills and check past payment ledgers and outstanding dues with the help of their 15-digit Property Account number (SAC Code).
How to check property tax in Mumbai?
Go to the official BMC Property Tax portal (portal.mcgm.gov.in) and select the citizen services tab on the portal's homepage. From the drop-down list, choose the option for Mumbai property tax.
Once redirected, enter your 15-digit Property Account Number (SAC code/property ID number) that appears on your previous tax bills, Index II extracts, or property purchase documents.
After logging in with your Property SAC Code, you will be able to view the property's recorded details such as the owner's name, ward, building address, land use category, and current tax category.
Understand your property tax demand.
Click on the View Outstanding Dues/Bill Details tab, where you will be able to view all your unpaid property tax dues along with the additional interest penalties incurred. You can also check previous ledger balances by selecting the particular year under the Outstanding Dues tab.
Always make sure that the information listed in your property tax bill is accurate before clearing your dues online. Double-check that the carpet area, usage, and billing period are correctly mentioned in the demand notice.
How to pay property tax online in Mumbai?
Make sure to pay your Mumbai property tax online through the designated civic portal to ensure a safe and secure online transaction.
How to pay property tax in Mumbai?
Access the BMC Property Tax portal (portal.mcgm.gov.in) and open the Property Tax tab to redirect to the official payment gateway.
Enter your 15-digit Property SAC Number and enter the security captcha code displayed on the screen, then click on the submit button.
View the outstanding amount
Click on the appropriate tax cycle (First Half, Second Half, or Full Year) to view the total amount payable for the current year. Make sure to double-check the demand notice before making the digital clearance.
Choose a payment mode
Select your preferred mode of online payment such as Net Banking, Credit/Debit card, UPI, or QR scanning.
Make the digital payment
Complete the online transaction by entering the OTP received on your registered mobile number with your bank.
Save the payment details
Save the payment reference number, transaction ID, and bank code that appears on the screen after successful payment.
Download your Mumbai property tax receipt
Click on the Generate Receipt tab to download your Mumbai property tax receipt on your system device.
How to Download Mumbai Property Tax Receipt Online?
Having digital prints or physical copy of the paid tax receipt is mandatory to sell the property, apply for home loans, transfer of municipal NOC, and cross-verification of legal title.
Steps to Access the Payment Receipt
Why Should Property Owners Keep the Receipt?
Tax receipts act as legal proof of tax compliance before the municipal authorities. The lending institutions mandate these documents during the home loan underwriting process. Co-operative housing societies require them while requesting the ownership transfer NOC, and the buyers scrutinize them during the title verification to ensure that the property is free of any municipal encumbrances.
How to Check Outstanding Property Tax in Mumbai?
Property Owners, prospective buyers, and legal consultants can track any unpaid tax dues on the online portal to stay updated and avoid any adverse dues from the local municipal authorities.
How to Pay Mumbai Property Tax Offline?
Even while online payment is the easiest method to pay property tax, there are various other ways to pay property tax in Mumbai offline. The property owners need to approach one of the following authorities to make an offline payment of their property tax:
BMC Ward Offices and Citizen Facilitation Centres
The property owners can pay their property taxes at their respective BMC Ward Offices or at any of the Citizen Facilitation Centres (CFCs) situated in Mumbai's administrative wards (A, K-West, H-East, etc.).
When to Pay Property Tax Offline in Mumbai?
It is always recommended to make online payments of property tax. However, offline payments are necessary and sometimes mandatory in a few scenarios:
How to Correct Errors in Mumbai Property Tax Records?
There are various common errors in the municipal tax bills which may lead to over-assessment or administrative problems while selling the property. It becomes the responsibility of the property owners to rectify the errors in the records of the local assessment department.
Wrong Owner's Name
It is a common error in the Mumbai property tax records if the owner's name in the assessment department is different from the current owner of the property. It generally happens when the property has been recently purchased, gifted, or inherited.
Resolution: Apply for mutation of the property with a copy of the registered sale deed, Index II extract, and society NOC in the local Ward Assessment Officer.
Incorrect Property Address
Incorrect property address is a type of error that occurs when there is an incorrect spelling of the name of the road or building or flat number in the assessment database.
Resolution: Provide copies of electricity bills, society allotment letter, and possession certificate for correction of address in the Mumbai property tax records.
Incorrect Property Area
Incorrect property area is a type of error that occurs when there is a difference between the area mentioned in the assessment bill and the area mentioned in the registered sale deed.
Resolution: Submit certified copies of the Architect's plan and the registered sale deed for a physical survey and reassessment of the area of the property.
Change in Property Use
The error in Mumbai property tax records occurs when there is a change in the property's use from commercial to residential or vice versa, while it continues to be assessed at the rate of the other category.
Resolution: Apply for a change of user category and submit the relevant permission from the municipal authorities and cancellation of trade license if applicable.
Duplicate or Incorrect Assessment
This type of error is commonly seen when there are two entries of the same flat in the assessment records with different SAC numbers, or when the calculation of the assessment value uses incorrect age or floor multipliers.
Resolution: Submit previous assessment receipts and property ownership documents for merging of duplicate entries and reassessment of the property.
How to Raise a Complaint with BMC?
The complaint with supporting documents can be raised by the property owner online at the MyBMC Grievance Portal (mumbai.gov.in) or as a physical petition to the Assistant Revenue Officer (ARO) at the local Ward Office. The municipal authorities will inspect the property and send the assessment order if the grievance is found to be valid after inspection.
How to do Mutation in Property Tax Mumbai?
Mutation of Property Tax is essential when you buy a house or any other property in Mumbai as it helps to update the records of BMC to reflect the new buyer's name and issue bills accordingly.
Process of Mutation
Apply for Property Tax Mutation: You may apply online by downloading the Property Tax Mutation Application Form or may collect it from the Ward Office concerned.
Prepare your documents: Get attested copies of the following documents:
Submit Application to Ward Officer: You may submit the application along with the documents to the Assistant Revenue Officer, concerned ward.
Pay mutation application processing fee: You will need to pay the mutation processing fee at the CFC counter.
Documents review and field inspection: The documents submitted by you will be reviewed and inspected by the concerned municipal inspector.
Issue of New Assessment Order: On acceptance, BMC will update its records and start issuing property tax bills on the new buyer's name.
What Happens If You Do Not Pay Property Tax in Mumbai?
Defaulting to pay property tax in Mumbai attracts several legal actions that are taken by the government bodies regarding their jurisdiction as per the Mumbai Municipal Corporation Act, 1888.
Interest on a compounded basis will be levied on the overdue amount at the rate of 2% per month from the date of default.
The demand notice is issued by the BMC, which gives the owner of the property a period of 21 days to settle all pending dues along with the interest amount.
The next step involves the civic body disconnecting water services and sewer connections as a measure to recover the outstanding amount of taxes. The civic commissioner has been given this power under the Mumbai Municipal Corporation Act, 1888.
The civic body can also go to the extent of attaching the property and put a hold on the transfer process and then take out the property for public auction for recovering taxes and legal dues.
Featured RERA-Approved Residential Projects in Mumbai & MMR
Below is a handpicked, verified inventory of live residential projects across Mumbai and the surrounding metro regions, complete with their MahaRERA registration numbers.
| Project Name | Location | Builder / Developer | Property Type | Size Range (Sq. Ft.) | Starting Price (INR) | MahaRERA Registration |
| Dynamix Luma | Andheri East, Mumbai | Dynamix Group | Residential Apartments | 625 – 1,121 sq. ft. | ₹2.25 Cr* onwards | P51800012155 |
| Sushanku Avenue 37 | Goregaon West, Mumbai | Sushanku Realty | Luxury Residential | 533 – 861 sq. ft. | ₹1.57 Cr* onwards | P51800077600 |
| Godrej Upavan | Thane Extension, MMR | Godrej Properties | Township Community | 420 – 750 sq. ft. | ₹54.53 Lakhs* onwards | P51700027436 |
| Salasar Courtyard | Mira Road East, MMR | Salasar Group | Premium Residential | 390 – 650 sq. ft. | ₹49.3 Lakhs* onwards | P51700035177 |
| Growth City Naigaon | Naigaon East, MMR | House Of Abhinandan Lodha | Integrated Township | 323 – 699 sq. ft. | ₹34.99 Lakhs* onwards | P99000080106 |
Conclusion
Knowing the procedure for calculating property tax, the charges and payment methods will ensure that property owners get to pay their taxes in due course without having to bear any sort of fines. It becomes convenient to use the MyBMC Citizen Portal to check dues and pay taxes online.
Before purchasing or selling any real estate, it is just as important to make sure that all of the legal documents have been verified and all pending property tax payments are made.
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