BMC Property Tax Hike: Mumbaikars to Pay More—Here’s What You Need to Know

In a significant development for Mumbai residents, the Brihanmumbai Municipal Corporation (BMC) has announced a hike in property tax—the first such increase in a decade. The revision comes following a 3.88% rise in the ready reckoner rates in March 2025.

The city, known as the financial capital of India and a land of dreams, already poses a challenge for homebuyers. Now, existing homeowners will face a higher financial burden, with the BMC confirming that the property tax has been revised upwards due to the updated ready reckoner rates.

First Tax Hike in 10 Years

Property tax is directly linked to the ready reckoner rate—an official estimate of property values used to calculate stamp duty and taxes. This marks the first increase in the ready reckoner rate in the last 10 years, and as a result, property tax is expected to rise by 15% to 20% for over 9 lakh property owners in Mumbai.

Who Will Be Affected?

The tax hike will affect all property owners in the metropolitan region, except those owning homes smaller than 500 sq. ft.. Nearly 3.6 lakh citizens owning such small flats are exempt from the increase. The rest will now have to bear the impact of higher taxes.

Extent of the Increase

According to the BMC, the average increase in property tax will be between 13% and 15%, but in some localities, residents have reported bills showing a 40% hike. The variation is attributed to area-specific differences in property value growth, as reflected in the revised reckoner rates.

Deadline and Rebate

The last date to pay the revised property tax is June 30, 2025. The BMC has announced that those who pay within the deadline will be eligible for a rebate, while late payments will attract penalties in the form of interest or late fees.

This move by the BMC is expected to generate additional revenue for civic projects, but it may also draw criticism from residents already coping with high living costs in the city.