Overview of Mumbai Property Tax (MCGM)
Property taxes are an annual fee that all homeowners must pay, but the tax amount varies depending on the location. In Mumbai, the Brihanmumbai Municipal Corporation (BMC), also known as the Municipal Corporation of Greater Mumbai (MCGM), is responsible for collecting and administering the Mumbai Property Tax and overseeing civic services. On the other hand, the Navi Mumbai Municipal Corporation (NMMC) handles the property taxes and civic administration in Navi Mumbai. The Mumbai Property Tax system is crucial for funding public services and infrastructure across the city, and residents must stay informed about the rates and payment processes for their respective areas.
Brihanmumbai Municipal Corporation (BMC) collects property taxes in Mumbai half-yearly or annually. The MCGM property tax is determined by several factors, including the age of the building, its location, construction, and the area in which it is located. The tax should be paid to the Municipal Corporation of Greater Mumbai (MCGM) or the Bombay Municipal Corporation (BMC) in Mumbai.
In Navi Mumbai, the Navi Mumbai Municipal Corporation (NMMC) is in charge of collecting and maintaining taxes. The Bombay Municipal Body Act of 1888 established the BMC, which is India's richest municipal corporation. For NMMC property tax calculation, BMC, like Pune, uses a capital value-based approach. The Capital Value System is based on the market value of the property.
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Your home, an office, a store, a building, or some land belonging to the building, such as a parking lot, are all examples of house properties. There is no distinction between a business and a residential property under the Income Tax Act. In the income tax return, all sorts of properties are taxed under the heading "income from residential property."
Typically, the house tax is accompanied by other taxes, such as a general tax, a water tax, a water benefit tax, a sewerage (drainage) tax, a sewerage (drainage) benefit tax, a tree tax, and a street tax (lighting, footpath etc.) The tax base includes municipal education cess, state education tax, and employment guarantee cess.
MCGM Property Tax formula
Here is how you can calculate property tax in Mumbai:
Property tax = tax rate * capital value
The following formula is used to calculate the capital value of a property:
Weight for the age of the building x weight for the kind of construction x total capital area x market worth of the property
The Ready Reckoner is a compendium of fair market value values for properties set by the state government. With the help of the Ready Reckoner, you may determine the property's market value (RR). You'll need to look up the ward/zone in which your home is located for this purpose.
Required documents for paying property tax in Mumbai
To ensure a hassle-free property tax payment process in Mumbai, property owners need to provide the following documents:
- Property tax assessment form
The official form provided by the Municipal Corporation of Greater Mumbai (MCGM) for property tax assessment. It includes details such as the property address, type, size, and usage (residential or commercial). - Sale deed or title deed
This document serves as proof of ownership and is especially required for newly purchased or transferred properties. - Previous property tax receipt
A copy of the last property tax payment receipt helps verify prior payments and check for any pending dues. - Unique Property Identification Number (UPIN)
Each property in Mumbai is assigned a unique identification number by the MCGM, essential for accessing tax-related records. - Building plan approval
For newly constructed or renovated properties, the approved building plan issued by municipal authorities is required. - Occupancy certificate
For recently constructed properties, this certificate confirms the property is fit for occupancy. - Address proof
A valid government-issued address proof of the property owner, such as an Aadhaar card, Voter ID, or Passport, is required to verify ownership details.
These documents are mandatory for both online and offline property tax payments, ensuring accurate and swift processing.
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Eligibility criteria for Mumbai property tax
To pay property tax in Mumbai, the following eligibility criteria apply:
- Ownership of property
Any individual or entity owning a property within Mumbai city limits, including residential, commercial, and industrial properties, is eligible to pay property tax. - Registered property
The property must be legally registered with the MCGM. Owners need to provide proof of ownership, such as a Sale Deed or Title Deed. - Occupied or vacant property
Property tax is applicable to both occupied and vacant properties, with rates varying based on usage. - Type of property
The tax rate depends on the property type—residential, commercial, or industrial—and its usage.
Building and land
Property tax is calculated on the built-up area and land area of the property, with different rates for each.
Eligibility criteria make sure you can pay your Mumbai property tax in a way that works best for you. While the payment process may take more time, it is always good to maintain a record of your payments. These records can be vital if you choose to monetise your property through a loan against property in the future. By pledging the value of your own property, you can access large funds—all with flexible repayment options and competitive interest rates. Get a loan of up to Rs. 10.50 crore with the option of interest-only EMIs during the initial tenure.
How to Calculate Mumbai Property Tax?
The procedure to calculate the Mumbai property tax online is mentioned below:
- Visit property tax portal
- Enter the ward, zone, sub-zone, type of occupancy, date of effect, user main category, user sub category, floor, floor subtype, year of construction, the building's age, SDDR rate, type and nature of the building, FSI Factor, FSI, metered/unmetered, carpet area, and tax code.
- Click on 'Calculate'.
- The property tax that must be paid will be displayed on the screen.
MCGM property tax payment offline
MCGM property tax payments can also be made offline. There are multiple help centres and citizen facilitation centres available for assistance. Additionally, you can visit the office of the Assistant Revenue Officers to complete your payment.
Payments can be made via cash, demand draft (DD), cheque, or Unified Payment Interface (UPI). After completing the payment, you will receive a receipt, which may be required for future reference.
Mumbai Property Tax due dates & rebates
The due date for payment of property tax in BMC is 30th June. For rebates, MCGM announced last year that housing societies will soon be able to receive a 5% mumbai property tax rebate by using water from sewage treatment plants, in addition to waste segregation and composting (STPs).
The deadline for paying property tax in Mumbai under the BMC (Brihanmumbai Municipal Corporation) is 30th June each year. To encourage sustainability, the MCGM has introduced a 5% property tax rebate for housing societies that adopt eco-friendly practices such as using treated sewage water, segregating waste, and composting through Sewage Treatment Plants (STPs).
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Exemptions from payment of Mumbai Property Tax
In property tax rebate option for the following properties:
- Properties utilised for public purposes, such as places of worship, charity trusts, and so on.
- It is awarded to properties that are fewer than 500 square feet in size. The concession is unconditional.
- Flats or houses with a floor area of 500 to 700 square feet receive a 60% discount.
Penalty: The tax must be paid by the 30th of June of each year, and if it is not, a monthly interest rate of 2% is applied.
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Some related property tax
Steps to pay MCGM Property Tax online
Citizens can access Mumbai property tax online payment at BMC help centres, citizen facilitation centres, or Assistant Revenue Officer offices. Here is a guide on how to pay Mumbai property tax online:
- 1 Go to portal and create an account
- 2 Enter your account number and captcha to log in
- 3 You'll be able to pay your mumbai property tax on the next page
- 4 Keep a copy of the receipt once you've made the payment. The receipt serves as a confirmation of payment and ownership.
If you want to pay by hand, you can do so at your local assistant revenue office, BMC support centres, or citizen facilitation centres located in all ward offices.
*Terms and conditions apply.
Mumbai Property Tax FAQs
The full form of MCGM is Municipal Corporation Greater Mumbai.
You must fill out the Know Your Customer (KYC) form if you want to get your Mumbai property tax bill by mail. Click here and submit the form online. Log in to the account by entering your account number and captcha.
Here are the steps for your ease:
- Go to the MCGM citizen portal and type in your account number
- Fill out the captcha and click the ‘login' button
- Upload and submit the required documents, including an attested copy
- To receive property tax alerts through email and SMS, provide your email address and contact information
- You will receive an email confirmation after your application has been approved
Yes, you can pay your Mumbai Property Tax bill offline at various help centers, citizen facilitation centers, or by visiting the Assistant Revenue Officers' office with payment options like cash, DD, or cheque.
To find your Mumbai Property Tax account number, check your previous tax receipts, visit the official MCGM website, or inquire at the nearest MCGM office or citizen facilitation center for assistance.
Certain categories such as government properties, public utilities, charitable institutions, and properties used for religious or educational purposes may be exempt from paying Mumbai Property Tax under applicable regulations.
The last date to pay Mumbai Property Tax usually falls in the month of February. However, exact deadlines may vary annually, so it’s advisable to check with MCGM for specific dates. If you are facing financial constraints in settling your property tax, consider a loan against property from Bajaj Finance. This option allows you to leverage your property's value to access funds at competitive interest rates, ensuring timely tax payments without compromising ownership.
