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The Brihanmumbai Municipal Corporation (BMC) has raised property tax rates by up to 15% for the 2025-26 assessment year, impacting over 9 lakh residential properties. This marks the first property tax revision since 2015-16. The increase, reflected in the latest property tax bills, varies by area, influenced by updated ready reckoner (RR) rates. Locations with higher RR rate revisions have seen steeper tax hikes. Properties with carpet areas under 500 sq ft remain exempt, continuing to benefit nearly 16 lakh households. BMC had delayed implementing new rates due to pending state approvals, which are now cleared. While officials say the hike aligns with current economic indicators, some residents have raised concerns over lack of notice and transparency. The change comes amid ongoing redevelopment, legal disputes, and monsoon preparedness, highlighting the need for more predictable civic engagement on taxation matters in Mumbai's evolving urban landscape.
After nearly ten years, the Brihanmumbai Municipal Corporation (BMC) has increased property tax rates by up to 15%, affecting over 9 lakh residential properties. This adjustment was reflected in the property tax bills issued earlier this month for the 2025-26 assessment year. According to BMC officials, while the maximum increase has been capped at 15%, the actual hike may be lower in certain areas, depending on the revised ready reckoner (RR) rates applicable to those locations. Advertisement
The RR rates, which influence both property tax and stamp duty assessments, were taken into consideration during this revision. A civic official explained that the latest spike in property tax stems directly from a revision in RR values notified earlier. Areas that witnessed steeper growth in RR rates have consequently experienced a larger tax jump.
This property tax revision is the first since the 2015-16 fiscal year. The civic body had delayed implementing new rates due to pending state approval. However, with approvals now in place, BMC has resumed enforcement. Currently, properties under 500 sq ft of carpet area remain exempt from property tax as per a state decision from 2017, benefiting approximately 16 lakh households.
While officials insist that the hike is in line with policy and economic indicators, many residents have argued that the change came without adequate notice or public consultation. With the monsoon approaching and ongoing court hearings surrounding redevelopment and tax disputes, civic groups have warned of increasing friction unless clarity and consistency are maintained in tax assessments.
As Mumbai continues to grow vertically and economically, a more predictable and participative civic approach could help ease public sentiment and ensure smoother transitions in future reforms.
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