The Brihanmumbai Municipal Corporation (BMC) has clarified that property tax rates in Mumbai have not been increased. However, property owners across the city have reported higher bills for the 2025–26 financial year due to an upward revision in ready reckoner rates — the minimum government-set property values used for taxation in Maharashtra.
The updated rates, which came into effect on 31 March 2025, mark the first revision in a decade. According to the BMC, the changes have led to an average increase of 15.89% in property tax bills. This revision also stems from a statutory requirement to reassess capital values every five years. The last scheduled update was deferred in 2020 due to the COVID-19 pandemic.
“There is a legal provision that these payments will be automatically revised due to the changes made in the ready reckoner for FY 2025–26,” the BMC said in an official release.
In response to concerns raised by citizens and political leaders, the BMC has temporarily suspended the proposed implementation of solid waste management fees, citing the additional burden it could place on residents. Notably, flats under 500 square feet remain exempt from property tax.
The BMC currently collects property taxes from over nine lakh owners in Mumbai and surrounding suburbs. With civic elections overdue by nearly three years, the issue has attracted political attention. BJP leader Ravi Raja criticised the administration for targeting prompt taxpayers while failing to recover dues totalling ₹11,000 crore from habitual defaulters.
The 5% hike in ready reckoner rates — initially proposed for public consultation — was directly implemented to streamline revenue generation. This move is expected to boost the government’s income from stamp duty and registration fees during the current financial year.
Source: The Free Press Journal
