Property
Property Tax
Calculate annual property tax
About the Property Tax calculator
Accurate property tax calculator to calculate annual property tax based on property value, location, and type. Includes rebates, discounts, and payment breakdown for residential, commercial, and industrial properties.
How the maths works
Property Tax Calculation
Annual Tax = (Assessed Value × Tax Rate ÷ 100) - Rebate Amount- Assessed Value
- Property Market Value - Age Depreciation
- Tax Rate
- Location and property type based rate (%)
- Rebate Amount
- Applicable discounts and rebates
- Age Depreciation
- 2% per year for first 10 years, then 1% per year
A worked example
₹1 Crore Residential Property
| Property Value | ₹1,00,00,000 |
| Property Type | Residential |
| Location | Tier 1 City (Mumbai/Delhi) |
| Property Age | 3 years |
| Rebate | 10% early payment discount |
Annual Tax: ₹69,840, Monthly: ₹5,820, Quarterly: ₹17,460
How to use it
- Enter property market value and select property type
- Choose location category (Tier 1/2/3 cities)
- Add property age for depreciation calculation
- Apply applicable rebates and discounts
- Get detailed tax calculation with payment breakdown
What it accounts for
- Location-based tax rates for Tier 1, 2, and 3 cities
- Property type consideration (residential, commercial, industrial)
- Age-based depreciation calculation for fair assessment
- Rebate and discount application for eligible properties
- Multiple payment frequency options (monthly, quarterly, annual)
Why it is worth working out
- Plan annual property tax budget accurately
- Understand tax implications before buying property
- Compare tax burden across different locations
- Optimize tax payments with rebate information
Questions people ask
How is property tax calculated?
Municipalities use one of three bases: annual rental value, capital value, or unit area value. The method and the rate are set locally, so two flats of identical size in different cities can attract very different bills.
What reduces a property tax bill?
Common rebates cover early payment, self-occupation as against letting, senior citizen or ex-service ownership, and older buildings through depreciation. Most require you to claim them; few are applied automatically.
Is property tax deductible from rental income?
Yes. Municipal taxes actually paid during the year are deducted from gross annual value before the standard 30% deduction is applied, when computing income from house property.
What happens if I do not pay?
Interest and penalties accrue, typically 1% to 2% a month, and unpaid tax attaches to the property rather than the owner. It surfaces as a charge at the point of sale, when it is far more expensive and far more urgent to resolve.
Read more on this
- Property tax: the bill that arrives every year, forever — Paying off the home loan does not end the cost of owning. How Indian municipalities calculate the annual bill, what reduces it, and why it belongs in a retirement budget.
This calculator is for information and education. It is not financial advice — see the disclaimer.