BMC property tax: how it is calculated, and whether you are exempt
By Nikunj Sharma5 min readChecked 8 September 2026BMC property tax is charged on capital value, not rateable value. Capital value is the ready reckoner rate for the area multiplied by the carpet area and by weights for construction type, age and use. Residential flats with a carpet area of 500 sq ft or less have been fully exempt since 1 January 2022.
Start with the exemption, because most people skip it
If your flat has a carpet area of 500 sq ft or less and it is residential, you pay nothing. That has been the position since 1 January 2022 and it still stands.
It is measured on carpet area, not the super built up figure in your agreement or the area on the listing. A flat sold as 700 sq ft super built up with 40 percent loading has a carpet area of 500 sq ft, and that flat is exempt while its paperwork says 700.
In Borivali, Kandivali and Malad a great many flats sit under that line. If you are being billed and you think you are under it, take it to your ward office.
You can check your own numbers with the BMC property tax calculator and the carpet area calculator.
How the calculation works
Mumbai moved from the rateable value system to the capital value system in 2015. The formula is:
Capital value = ready reckoner rate x carpet area x construction weight x age weight x user category weight
The tax is then a percentage of that capital value.
The weights
| Construction type | Weight |
|---|---|
| RCC building or bungalow | 1.00 |
| Chawl or semi permanent, other than RCC | 0.60 |
| Under construction or vacant land | 0.50 |
| Age of the building | Weight |
|---|---|
| Built before 1945 | 0.80 |
| Built 1945 to 1985 | 0.90 |
| Built after 1985 | 1.00 |
An older, non RCC building therefore carries a much lower capital value than a new tower of the same carpet area in the same locality, which is why two neighbours can pay very different amounts.
The one number we will not publish
The percentage applied to capital value varies by ward and by user category. We could not confirm a figure we would be willing to print, so we have not printed one. It is on your bill, and our calculator takes it as an input rather than guessing.
Paying it
- Go to the MCGM portal and open property tax under the citizens section
- Enter your property account number, or search by ward, building name and address
- Check the property details and accept them
- Review the outstanding amount, which is broken down by year
- Pay by net banking or card, and save the receipt
If you would rather not pay online, ward offices, BMC help centres and assistant revenue offices take payment in person.
The due date is 30 June, and late payment attracts a penalty of 2 percent a month on the outstanding amount. That compounds quietly, which is how small arrears become awkward ones.
Why it matters when buying, not just when owning
Unpaid property tax follows the property, not the person. A buyer who does not check arrears inherits them, and it surfaces at exactly the wrong moment, usually in the week before registration.
Ask for the last paid receipt before you pay a token. It takes a minute.
What we check before a client commits
Three things on the bill, before a token changes hands.
Whose name is on it. If the seller's name is not on the latest bill, somebody in the chain skipped mutation, and that is corrected before the sale or it becomes the buyer's job with one more deed to file.
Whether it is paid. Property tax under the Mumbai Municipal Corporation Act is a first charge on the property, which means the corporation looks to the flat for its money, not only to the person who owed it. The Bombay High Court has held that the charge cannot be enforced against a buyer who had no notice of it, but that is a defence to argue afterwards, not a reason to buy into arrears. The seller produces a paid up bill before registration, and the dues clause in the deed puts anything outstanding on the seller.
The carpet area on the assessment. Since 1 January 2022 a residential flat of up to 500 square feet carpet area pays no property tax in Mumbai. If the assessment shows a larger area than the flat has, the exemption is being missed, and that is worth correcting at the ward office whether or not a sale is happening. How many owners in Borivali are paying tax on a flat that qualifies is not a number anyone has published, so we do not offer one.
Before you buy
Ask for the last paid receipt and check the carpet area against the 500 sq ft line, and you will know both whether anything is owed on the flat and whether there should be a bill at all. If you would like us to check a specific flat in Borivali, Kandivali or Malad, send us the building's name and we will tell you what we find, free.
Common questions
- Is my flat exempt from BMC property tax?
- Residential flats with a carpet area of 500 sq ft or less have been fully exempt since 1 January 2022. It is measured on carpet area, so check the carpet figure in your agreement rather than the area in the listing.
- How do I find my property account number?
- It is printed on the upper portion of an old property tax receipt. If you do not have one, you can search the MCGM portal by ward, building name and address instead.
- How is it calculated?
- On capital value: the ready reckoner rate for the locality, times the carpet area, times weights for construction type, age and use. The tax is a percentage of that figure.
- What happens if it is unpaid when I sell?
- It is a liability attached to the property, so a buyer will want it cleared before completion. Arrears also carry a 2 percent monthly penalty until they are paid.
- Is property tax exempt below 500 square feet in Mumbai?
- Yes. Since 1 January 2022 a residential flat of up to 500 square feet carpet area in Mumbai pays no property tax. The exemption applies to the carpet area on the assessment, so if that figure is wrong the exemption is being missed and the ward office can correct it.
- How do I check my property tax in Mumbai online?
- On the MCGM property tax portal, using the property account number printed on any earlier bill. It shows the current bill, the arrears if any, and the assessed area the bill is calculated on, which is the figure to check against the flat's actual carpet area.
Words you will see
Plain meanings for the terms used above.
- Carpet area
- The floor you can actually walk on inside the flat, measured wall to wall, with no balconies, walls or shared space counted in.
- Loading
- The gap between the area you are sold and the area you can use, expressed as a percentage added on top of carpet area.
- Ready reckoner rate
- The government's own valuation of property in an area, used as the floor for stamp duty even when a flat sells for less.
- Mutation
- Updating the municipal record so the tax bill comes in the new owner's name. It follows a sale, it does not create ownership.
- Capital value
- The value the municipal corporation assigns a property, which its property tax is calculated from.
Senior Associate at Shree Giriraj Real Estate, handling marketing and sales across Borivali, Kandivali and Malad. Writes the articles here from the questions clients actually ask.
- Municipal Corporation of Greater Mumbai, property tax
- Department of Registration and Stamps, ready reckoner (e-ASR)
- HomeFirst India, BMC Mumbai property tax
- Bombay High Court, Nagri Niwara Parishad v. Municipal Corporation of Greater Mumbai, 2024, on section 212 and notice to a transferee
- Deccan Herald, exemption for residential flats up to 500 square feet
Read next
- PaperworkReady reckoner rates in Mumbai, and what they mean for your stamp duty
The ready reckoner rate is the government's own minimum valuation for property in an area, published annually as the Annual Statement of Rates. Stamp duty is charged on the agreement value or the reckoner value, whichever is higher. If a flat sells below the reckoner rate, duty is still calculated on the reckoner rate.
- PaperworkMutation of property: what it is, and what it is not
Mutation updates the local authority's records to show you as the person liable for the property, so tax is billed in your name. It does not create or prove ownership. The courts have repeatedly held that revenue records are not documents of title: ownership comes from your registered deed.
- PaperworkIGR Maharashtra: what it is and how to actually use it
IGR Maharashtra is the Department of Registration and Stamps, the state body that registers property documents and collects stamp duty. Its website is where you value a property for stamp duty, search registered documents, book a registration appointment, register a rent agreement and download certified copies. Almost every property transaction in the state passes through it.
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