Property Tax: What You Need to Know About Rates, Rules, and Savings

When you own a home or commercial space, property tax, a recurring fee paid to local government based on your property’s value. Also known as municipal tax, it’s not optional—it’s tied directly to your ownership rights and the services your area receives. In Mumbai’s Mulund, this tax funds everything from road repairs to waste collection and street lighting. Skip it, and you risk penalties, legal notices, or even a lien on your property.

Property tax isn’t just a flat fee. It’s calculated using property tax rates, the percentage or fixed amount applied per square foot or assessed value, which vary by ward, property type, and age. Residential flats pay less than commercial shops. Newer buildings often get taxed higher because they’re valued more. And if your property has a garden, parking, or extra floors? That changes the number too. You can’t guess it—you need to check your latest notice from the MCGM.

Many owners don’t realize property tax exemption, special cases where certain properties pay less or nothing at all exists. Senior citizens, widows, or properties used for religious purposes might qualify. Some municipalities offer discounts if you pay early or online. And if your property was damaged in a flood or fire, you can apply for a reassessment. It’s not automatic—you have to ask.

What you pay today might not be what you pay next year. property tax calculation, the method used to determine your annual bill can shift when the city updates its property valuation database. If your neighbor’s flat got a renovation and your place didn’t, your tax could suddenly look unfair. That’s why it’s smart to track changes in your area and challenge your assessment if something seems off.

And don’t forget the property tax deadline, the last date you can pay without penalties. Most cities in India set it around June 30. Pay late? You’ll see interest added—sometimes as high as 2% per month. That’s not a small penalty. It’s easy to miss if you’re renting out your place and assume your tenant handles it. But legally, it’s your responsibility.

Here’s what you’ll find in the posts below: real examples of how property tax works in different cities, what triggers hikes, how to reduce your bill legally, and what happens when you ignore it. No fluff. Just facts you can use whether you’re buying your first flat in Mulund or managing a commercial building. Know your tax. Protect your investment.