by datta Nighut 
Property Tax in Mumbai May Rise After 10 Years: Here’s What You Should Know
Buying a house in Mumbai is already expensive, and now it might become costlier to maintain one too. The Brihanmumbai Municipal Corporation (BMC) has proposed an increase in property tax in Mumbai. If this proposal is approved, homeowners might have to pay 10% to 12% more property tax than before.
Why This Matters
For the first time in nearly 10 years, the BMC is considering a revision in property tax. The last time property tax was increased was in 2015-16. Normally, property tax rates are reviewed every five years, but this time, it has taken almost a decade.
In between, there was one proposal to raise the tax by around 20%, but that plan was never approved. Now, BMC is back with a new, more likely proposal to raise taxes by around 12%.
What’s Driving the Increase?
The Ready Reckoner rates (used to calculate property values) have already gone up from April 1, 2025. This has made buying property in Mumbai more expensive. Now, if the property tax goes up too, maintaining a house will also cost more.
BMC says the tax hike is needed to match the rising costs of running the city and providing public services. Higher taxes would also help the civic body manage inflation and maintain the infrastructure of Mumbai.
Record Collection This Year
Despite no recent tax hike, BMC has managed to collect a record ₹6,198 crore in property tax during the financial year 2024-25. This is very close to its target of ₹6,200 crore. In addition, they collected ₹178 crore in penalties from late payments.
Still, officials say it’s time to update the tax system to reflect the current property values in the city. This means Mumbaikars could soon see higher tax bills if the new proposal is passed.
What This Means for You
If you’re a homeowner in Mumbai, and this proposal is approved:
- You may see your annual property tax increase by 10–12%
- Combined with higher Ready Reckoner rates, overall property costs will rise
- Both new buyers and current owners will feel the impact
- Even if you’re not buying property now, your monthly maintenance costs could go up
When Will the Change Happen?
As of now, this is just a proposal. The BMC has not officially approved it yet. Once approved, the new tax rates would come into effect soon after.
For now, it’s important to stay informed and prepare for a possible increase in property-related expenses.
Summary:
- Property tax in Mumbai might rise for the first time in 10 years.
- Increase of 10–12% proposed by BMC.
- Comes after Ready Reckoner rates were raised on April 1, 2025.
- Maintenance of property in Mumbai could get more expensive.
- BMC already collected ₹6,198 crore in property tax in 2024–25.
Final Thoughts
Living in Mumbai is already costly, and if the property tax hike goes through, the burden on homeowners will grow even more. It’s a good idea to plan your finances with this expected increase in mind. We’ll keep you updated as more news comes out on this important development in the Mumbai real estate market.
