Property tax in India is imposed on all lands and buildings, irrespective of their purpose or location. Generally, this tax is assessed and gathered at the state level, with municipal corporations and panchayats overseeing the process. In the case of Property Tax in Tamil Nadu, it is administered and collected by the relevant municipal authorities.
The tax rate typically varies based on factors such as the property's size, age, and purpose. Below, you'll find an extensive overview of property tax regulations in Tamil Nadu, along with various associated considerations.
What is property tax in Tamil Nadu?
Property tax in Tamil Nadu is a compulsory tax collected twice a year by local municipal bodies on land and buildings. It is calculated based on the property’s Annual Rental Value, with rates and payment rules varying by the local urban authority.
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:
- Affluent areas with all basic amenities
- Affluent areas without one or more amenities
- Middle-income areas having all amenities
- Middle-income areas without one or many amenities
- Low-income areas having all amenities
- 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 |
Rateable value by roof and construction type
Rateable value varies based on roof and construction type, with higher quality and durable materials attracting greater additions to the base value, which directly impacts overall property tax calculations.
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 |
Rateable value by building use
Rateable value also depends on how a building is used. Properties used for commercial, industrial, or rental purposes attract higher additions compared to storage or non-commercial structures.
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 |
Discount rate by property age
Discount rates on property tax are applied based on the age of the building, with newer properties receiving lower discounts and older constructions qualifying for higher reductions in rateable value.
Age of the property |
Discount rate |
0-10 years |
5% |
11-20 years |
10% |
21-30 years |
20% |
31 years or more |
30%-40% |
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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 in Tamil Nadu 2025
The property tax rates for the fiscal year 2024-25 can vary from one locality to another within Tamil Nadu. These rates are established by local authorities and are often categorised by property type, usage, and location.
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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
- Online payment: Many municipalities in Tamil Nadu offer an online platform to pay property tax. Visit the official website of your local municipal corporation to access the online payment portal.
- Enter property details: Enter your property identification details, assessment number, or other required information to fetch your tax amount.
- Choose payment method: Select your preferred payment method, such as debit card, credit card, net banking, or other available options.
- Pay tax amount: Complete the payment process and retain the payment receipt for your records.
Property tax in Tamil Nadu due dates
Property tax payments in Tamil Nadu typically have specific due dates, which can vary based on the local body's regulations. It is crucial to be aware of these due dates to avoid late payment penalties.
Exemptions and concessions
Certain categories of properties, such as government properties, educational institutions, places of worship, and properties owned by disabled individuals, may be eligible for exemptions or concessions in property tax. The specific criteria and procedures for availing of these benefits vary and can be obtained from local municipal offices.
In conclusion, understanding property tax regulations and procedures in Tamil Nadu is crucial for property owners. By staying informed about tax rates, calculation methods, online payment options, due dates, and potential exemptions, property owners can fulfil their tax obligations promptly and contribute to the development of local communities and infrastructure. Additionally, property owners can explore options like Loan Against Property to leverage their property for financial needs while managing tax responsibilities effectively.
