MCD property tax in Delhi

Property tax in Delhi is calculated based on the annual property value and the tax rate applicable to the category. There are eight different categories each with its separate tax rates.

List of Municipal Corporations in Delhi
Here is a list of Municipal Corporations in Delhi:

  1. North Delhi Municipal Corporation (NDMC)
  2. South Delhi Municipal Corporation (SDMC)
  3. East Delhi Municipal Corporation (EDMC)

Property Tax Rates in Delhi 2023-24

Every resident in Delhi has to pay Property tax to MCD. Here is a short guide of paying property tax in Delhi based on specific locations.

Property Category

Residential Property Tax Rate

Commercial Property Tax Rate

Industrial Property Tax Rate

Unit Area Value - Rate per sq. metre

A

12%

20%

15%

Rs.630

B

12%

20%

15%

Rs.500

C

11%

20%

12%

Rs.400

D

11%

20%

12%

Rs.320

E

11%

20%

12%

Rs.270

F

7%

20%

10%

Rs.230

G

7%

20%

10%

Rs.200

H

7%

20%

10%

Rs.100


In Delhi, the municipalities levy a property tax that is calculated using the annual value method.

Divisions of Municipal Corporation to pay property tax in Delhi.

The state is divided into 8 different categories, segmented from A to H, and there are three municipal corporations responsible for collecting property tax. These include the North Delhi Municipal Corporation or NDMC, the South Delhi Municipal Corporation or SDMC and the East Delhi Municipal Corporation or EDMC.

Based on the category, the tax rate may vary for different property types. This rate is important for determining the total tax payable. Every citizen who owns property in Delhi must pay property tax, and you can do it either online or offline. Further, after paying the tax, do not forget to request a tax receipt. This is an important document that is necessary to claim benefits such as loans against property tax exemptions.

How to calculate house tax in Delhi?

Follow the below step-by-step guide to calculate the house tax in Delhi:

  1. Determine the Unit Area Value (UAV) based on property category and location
  2. Calculate the annual value by multiplying UAV by the total built-up area
  3. Apply the age factor to categorize the property as new, old, or very old
  4. Deduct any applicable exemptions from the net annual value
  5. Calculate house tax by applying the tax rate to the net annual value after exemptions
  6.  Be aware of additional factors like user charges and education cess
  7. Check the payment schedule and deadlines

Example

  • Unit area value per square meter: Rs. 630
  • Unit area of property: 100 sq. meters
  • Age factor: 1 (assuming the property is new)
  • Use factor: 1 (assuming it's for residential use)
  • Structure factor: 1 (assuming standard construction)
  • Occupancy factor: 1 (assuming it's fully occupied)

Using the formula provided:

Annual Value = Rs. 630 (unit area value) × 100 sq. meters (unit area of property) × 1 (age factor) × 1 (use factor) × 1 (structure factor) × 1 (occupancy factor)
Annual Value = Rs. 63,000

Now, let's assume the Rate of Tax for Category A properties is 12%.

House Tax = Annual Value × Rate of Tax
House Tax = Rs. 63,000 × 12%
House Tax = Rs. 7,560

So, for this residential property in Category A, the house tax would be Rs. 7,560.

Steps to pay property tax online in Delhi

The Municipal Corporation of Delhi allows residents and citizens that own property/ land to pay property tax online. Here are the steps to follow.

Step 1: Visit the official website of the Municipal Corporation of Delhi and select your area.
Step 2: Click on ‘Online Filing of Property Tax Returns’ under the ‘Property Tax’ tab
Step 3: Read the terms and conditions and select, ‘Click Here to File Property Tax’.
Step 4: Input your property ID, or select the option stating, ‘Click Here to File Your Return if Property ID has not been Allotted Earlier’.
Step 5: Fill in property details, such as:

  • Ownership details – Information regarding ledger folio number, type of ownership, and type of property
  • Property details – Details of the housing colony (if any), property number, and complete address
  • Contact details – Your phone number, email address, and other contact details, including bank details
  • Building details and tax calculations – You will have to enter all the other details of your property that are required to calculate municipal tax online. This includes the floor number, covered area, purpose of use, structure, occupancy, year of construction, exemption category, etc.

Step 6: Enter details of any previous arrears (if any) that you are yet to submit.
Step 7: Cross check and verify all the details and click on ‘Accept’ to submit the duly filled form.
Step 8: Download your property tax bill.

Steps to pay property tax offline in Delhi

To pay property tax offline in Delhi, follow these steps:

Step 1: Locate the nearest Municipal Corporation office in your area. You can find the address and contact details of the office on the official website of the Municipal Corporation of Delhi (MCD).

Step 2: Once at the office, request a property tax challan form from the designated counter or desk.

Step 3: Fill in the required details on the property tax challan form accurately. This includes your property details, assessment number, and owner details.

Step 4: Calculate the amount of property tax you owe based on the property tax rates applicable to your property type, size, and location. You can obtain this information from the municipal office or the property tax assessment notice.

Step 5: After filling out the challan form and calculating the tax amount, submit the form along with the payment to the designated counter.

Step 6: Pay the property tax amount in cash or through a demand draft, as specified by the municipal authorities. Ensure that you provide the correct amount and currency denomination.

Step 7: Upon successful payment, you will receive an acknowledgment receipt from the municipal office. This receipt serves as proof of payment for property tax.

Step 8: Keep the acknowledgment receipt safely for your records. It contains details such as the payment amount, date, and transaction reference number.

By following these steps, you can pay your property tax offline at the Municipal Corporation office in Delhi. Ensure that you visit during office hours and carry all necessary documents and payment instruments for a smooth transaction.

Penalty for Delay Payment of MCD Tax

If the MCD tax is not paid within the designated deadline, the Municipal Corporation of Delhi imposes a penalty for late payment. This includes an additional charge of 1% per month on the unpaid tax amount, starting from the first day after the due date. This cumulative charge will continue until the full tax amount, including the added late fee, is paid.

Property Tax in Delhi Online 2023-24

Category

Unit area value (Rs per sq metre)

Category A

630

Category B

500

Category C

400

Category D

320

Category E

270

Category F

230

Category G

200

Category H

100

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Frequently asked questions

How to calculate house tax in Delhi?

In order to calculate house tax in Delhi, Unit Area System is recommended by Delhi government.

House Tax=Annual Value x Rate of Tax

Annual Value = Unit area value x unit area of property x structure factor x occupancy factor x age factor x use factor x

Rate of Tax = Check the applicable house tax rate on the official website of MCD Property Tax.

Can users pay House tax in Delhi online?

Users can pay house taxes online on their properties for NDMC, SDMC and EDMC by using their credit card/debit card and internet banking on the official website of the Municipal Corporation of Delhi.

How can I check my property tax offline in Delhi?

You can pay property tax in Delhi at ITZ cash counters the whole way across Delhi. You will get an instant receipt after your payment which will contain a property tax  ID which you should use for all future payments.

How to download property tax receipt Delhi?

You can download your property tax receipt from the Municipal Corporation of Delhi's official website. To do this, visit the MCD portal and navigate to the 'Property Tax' section. Select the option 'Print Receipt' and input the requested details such as your Property ID and the financial year for which the receipt is needed. After submitting these details, the system will generate your receipt, which you can download and print for your records.

How to get property ID for house tax in Delhi?

Your Property ID for house tax in Delhi can often be found on the tax receipt from the previous year. If it's your first time paying the property tax or if you have lost the previous details, you may need to contact the Municipal Corporation of Delhi directly. The MCD can assist you in ascertaining your Property ID with relevant property details such as your address, zone, and colony.

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