After nearly a decade, the Brihanmumbai Municipal Corporation (BMC) has implemented a property tax hike of up to 15%, affecting more than 900,000 residential properties across Mumbai. The revised tax rates were reflected in the property tax bills issued earlier this month for the 2025-26 assessment year.
According to BMC officials, while the maximum increase is capped at 15%, some areas may see smaller hikes depending on the updated ready reckoner (RR) rates applicable locally. The RR rates, which influence both property tax and stamp duty calculations, were revised recently, triggering the tax adjustment.
A civic official explained that the rise in property tax directly follows the increase in RR values notified earlier this year. Areas with steeper growth in RR rates have naturally experienced larger increases in tax bills. This revision marks the first update since the 2015-16 fiscal year, delayed due to pending state government approval. With the approvals now granted, the BMC has resumed enforcement of the new rates.
Notably, properties with a carpet area under 500 square feet remain exempt from property tax, in line with a 2017 state government decision. This exemption benefits roughly 1.6 million households in Mumbai.
While officials maintain that the tax hike aligns with policy objectives and prevailing economic conditions, many residents have criticised the sudden increase, citing insufficient notice and lack of public consultation. With the monsoon season imminent and ongoing legal disputes regarding redevelopment and taxation, civic groups have cautioned that transparency and consistent communication are essential to avoid public unrest.
As Mumbai’s urban landscape continues to evolve, a more participatory and predictable approach to tax reforms could help ease concerns and foster smoother implementation in the future.
Source: Prop News Time
