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Property tax in Tamil Nadu Overview

Property tax in India is applicable on every land or building, regardless of their usage and location. Typically, it is calculated and collected at a state level, and to specify it further, municipal corporations and panchayats are in-charge of this activity. Similarly, for Tamil Nadu, it is levied and collected by the respective municipal bodies.

The rate of tax usually depends on the size, age and usage of a property. Here is a comprehensive rundown on property tax in Tamil Nadu, including several related factors.

House tax rates across Tamil Nadu

Starting with the applicable house tax rates in Tamil Nadu, one should know that the entire area under a municipal body is divided into six categories. These are:

  1. Affluent areas with all basic amenities
  2. Affluent areas without one or more amenities
  3. Middle-income areas having all amenities
  4. Middle-income areas without one or many amenities
  5. Low-income areas having all amenities
  6. Low-income areas not having one or more amenities

Moving ahead, the minimum basic rateable value required for the calculation of property tax in Tamil Nadu for each of these areas is as follows:

Category Chennai (Rs.) Other Corporations (Rs.) Municipalities (Rs.) Town Panchayats (Rs.)
1 2.00-2.50 1.75-2.50 1.50-2.00 1.00-1.75
2 1.75-2.00 1.50-2.00 1.25-1.75 0.80-1.50
3 1.50-1.75 1.25-1.75 1.00-1.50 0.75-1.25
4 1.25-1.50 1.00-1.50 0.75-1.25 0.50-1.00
5 0.75-1.25 0.75-1.25 0.50-1.00 0.30-0.75
6 0.50-1.00 0.50-1.00 0.40-0.75 0.15-0.50
Type of construction Addition to rateable value
Thatched roof Nil
Asbestos 10%
Tiled roof 20%
Concrete roof with clay/cement/mosaic 75%
Concrete roof with marble floor 125%
High rises 30% additional
Use of the building Addition to rateable value
Godown/sheds 50%
Commercial space 150%-200%
Halls and Kalyana Mandapams rent out for private use 150%
Industrial 100%
Institutional Charitable- 0% , Non-charitable- 100%
Hotels 4 and 5 stars- 300-400%, Others 100-200%
Residential Nil
Age of the property Discount rate
0-10 years 5%
11-20 years 10%
21-30 years 20%
31 years or more 30%-40%

House tax rates across Tamil Nadu

Starting with the applicable house tax rates in Tamil Nadu, one should know that the entire area under a municipal body is divided into six categories. These are:

How to calculate property tax in Tamil Nadu?

The process to calculate property tax varies from one state to another. The property tax in Tamil Nadu is calculated with reference to the Annual Rental Value of a particular property. The ARV of property in Tamil Nadu is calculated using the following formula:

Total ARV= ARV of the uncovered space + ARV of the covered space

The ARV of an uncovered space = 12 x (1/2) x BRV x sq. ft. of the uncovered space

And, the ARV of the covered area can be obtained by multiplying its rateable value, including all the additions with 12.

Property Tax Rates in Tamil Nadu 2022-23

The tax rate that is levied on the ARV is given as below:

Type of area Minimum Rate Maximum Rate
Municipalities 15% 35%
Corporation 20% 40%
Town Panchayats 15% 30%

Steps to pay property tax in Tamil Nadu

Individuals can easily pay the property tax in Tamil Nadu online. Although the steps for Tamil Nadu house tax online payment differs across all cities of the state, the basic process is quite similar.

For instance, individuals with a property within the limits of Greater Chennai Municipal Corporation can pay their taxes online in the following way:

Step 1: First, visit the official website of the Greater Chennai Municipal Corporation

Step 2: Find the ‘Online Civic Services’ option, and from there, click on the ‘Property tax online payment’

Step 3: Provide the property location details and tap on ‘Submit’. One can find the details on the previous receipts

Step 4: Click on ‘Pay online’ option to pay the tax amount through credit card, debit card, net banking

Alternatively, property-owners can also make Tamil Nadu property tax payment offline at:

  • Tax collectors
  • E-Seva centres put by the Tamil Nadu Government all across the state

One can make offline property tax payments through cash, cheque and demand drafts as well by visiting the nearest branch office of his/her preferred lender.

Property tax in Tamil Nadu Due dates

The residents of Tamil Nadu have to pay the property tax by 31st March and 31st September of each year. In case a property owner fails to pay the tax within the stipulated date, then a penalty of 1% will be levied for each month.

Exemptions and Concessions

Government properties and buildings that are used by foreign missions can enjoy exemption from paying property tax across the state. 

In addition to this, there are certain concessions that residents of Chennai should be aware of:

  • In the case of semi-permanent properties such as thatched structures without roofing can get a rebate of 20% on monthly RLV.
  • Residential buildings occupied by owners are eligible for a 25% rebate on monthly RLV. However, for commercial buildings occupied by owners, the rebate stands at 10%.
  • Buildings that are more than 4 years old can get a 1% depreciation discount each year. Notably, the maximum rebate cannot be more than 25%. 

Residents of Tamil Nadu who wish to pay their property taxes can refer to the above sections to get a detailed idea about tax calculation, payment process, due dates, and more.

Frequently Asked Questions

Where can I pay Tamil Nadu house tax online?

Individuals can easily pay the property tax in Tamil Nadu through the official websites of corporations or municipal bodies. The process to pay online house tax is quite simple, efficient and hassle-free. Online house tax payments can be made through debit cards or credit cards of approved banks. Netbanking is also a viable option.

Where to check Tamil Nadu property tax payment status?

The property tax status for Tamil Nadu can be viewed on the official website of the respective municipalities or corporations. One has to provide necessary property details to view the status.

How can I download the Tamil Nadu house tax payment receipt?

Property-owners paying the Tamil Nadu house tax online through the official website will get an acknowledgement receipt once the payment is complete. They will get an option to download this receipt. One can keep this document as a softcopy or have it printed for future references.

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