MCGM Property Tax: How to Pay Property Tax in Mumbai
Introduction
MCGM Property Tax is a mandatory civic levy imposed on property owners in Mumbai and collected by the Municipal Corporation of Greater Mumbai (MCGM). Paying property tax on time ensures uninterrupted civic services and avoids penalties. This guide explains how MCGM property tax is calculated, current property tax rates in Mumbai, how to check your bill, pay online, claim exemptions and stay compliant in 2026.
MCGM Property Tax for Mumbai Property Owners
MCGM property tax is a civic responsibility for all residential and commercial property owners in Mumbai. Collected by the Brihanmumbai Municipal Corporation (BMC), officially known as MCGM, this tax funds essential city services such as road maintenance, water supply, drainage, public health and sanitation.
Understanding property tax in Mumbai can feel complex due to changing rates, calculation methods and exemptions. This guide simplifies MCGM property tax by explaining how it is assessed, how to make online and offline payments and how to avoid penalties. Staying informed helps homeowners plan finances better and ensures smooth property ownership and transactions.
Also Read: What is Property Tax and How to Calculate it in India
What is Property Tax in Mumbai? MCGM Key Details
Property tax in Mumbai is an annual levy imposed by MCGM on residential, commercial and industrial properties within city limits.
Key details include:
- Authority: Municipal Corporation of Greater Mumbai (MCGM)
- Who pays: Property owners or occupiers
- Tax base: Capital Value of the property
- Payment frequency: Annually (with instalment options in some cases)
- Purpose: Funding civic infrastructure and public services
MCGM property tax is calculated based on property characteristics rather than rental value. Property owners can access bills, payment history, and services through the official MCGM portal, which is the only authorised platform for online payments and verification. Updated property tax records are also important during Home Loan applications, as lenders verify municipal compliance before approval. Accurate records help borrowers use a Home Loan EMI Calculator more realistically by aligning expected loan eligibility and repayment estimates with lender requirements.
Also Read: Home Loan: All You Need to Know
How is Property Tax Calculated in Mumbai? (Capital Value System)
Mumbai follows the Capital Value System for property tax calculation, introduced in 2015. Under this system, tax is calculated based on the market value of the property rather than rental income.
The capital value reflects the estimated market worth of the property and is determined using Ready Reckoner rates published by the Maharashtra government. Several factors influence the final tax amount, ensuring fair and uniform assessment across the city.
Key factors considered include:
- Location of the property
- Property type (residential or commercial)
- Construction type (RCC or other)
- Occupation status (self-occupied or rented)
- Floor Space Index (FSI) utilisation
- Age of the building
Each factor carries a specific weight, which adjusts the capital value accordingly. This method ensures transparency and aligns tax liability with real property value.
MCGM Property Tax Formula: Capital Value Method
The MCGM property tax formula is based on the capital value of the property.
Property Tax = Applicable Tax Rate × Capital Value
Where:
Capital Value = Market Value × Carpet Area × Weight for Construction Type × Weight for Age of Building × Usage Weight
This formula allows MCGM to assess tax uniformly while accounting for variations in property characteristics.
Illustrative Example of Property Tax Calculation in Mumbai
Consider a residential flat in Mumbai with the following details:
- Market value: ₹20,000 per sq. metre
- Carpet area: 60 sq. metres
- Construction type weight: 1.00
- Age factor: 0.90
- Applicable tax rate: 0.1%
Capital Value = 20,000 × 60 × 1.00 × 0.90 = ₹10,80,000
Annual Property Tax = 0.1% × 10,80,000 = ₹1,080
This simplified example shows how various factors affect the final tax payable.
Weights and Factors for Property Tax Calculation
MCGM applies different weights to determine capital value:
- Construction Type: RCC structures usually carry higher weight
- Age of Building: Older properties receive depreciation benefits
- User Category: Residential, commercial, or industrial usage
These weights are indicative and may vary based on official notifications and updates by MCGM.
How to Check Your MCGM Property Tax Bill Online for 2026
Property owners can check their MCGM property tax bill online through the official portal.
Steps:
- Visit the MCGM property tax website
- Enter your property account number and captcha to login
- View outstanding dues and bill details
If you have forgotten your account number, it can be retrieved using property details such as ward and owner name.
Online Payment of MCGM Property Tax for Mumbai Homeowners
MCGM property tax online payment is secure and convenient.
Steps to pay online:
- Log in to the official MCGM portal
- Select “Pay Property Tax”
- Enter account details and verify dues
- Choose payment mode (net banking, debit/credit card, or UPI)
- Complete the transaction and receive confirmation
Online payments offer instant acknowledgment and reduce the need for physical visits.
Downloading Your MCGM Property Tax Bill and Receipt
After payment, property owners can download their MCGM property tax bill and receipt. Receipts can be accessed through the portal’s payment history section or via email confirmation. Saving a digital copy is recommended for legal and financial records.
MCGM Property Tax Due Dates and Penalty Charges
MCGM property tax is typically due by 30 June each year.
Penalty details:
- Late payments attract interest, usually around 2% per month
- Continued non-payment may result in recovery action
Property owners should verify due dates annually on the official portal.
MCGM Property Tax Exemptions and Concessions
MCGM offers exemptions and concessions under specific conditions:
- Properties under 500 sq. ft. may be fully exempt
- Properties between 500–700 sq. ft. may receive partial concessions
- Properties used for charitable or public worship purposes
- Periodic penalty waiver schemes announced by MCGM
Eligibility and benefits are subject to official guidelines and notifications.
Final Thoughts
MCGM property tax is a vital part of responsible property ownership in Mumbai. Understanding how property tax is calculated, paying it on time, and staying informed about exemptions and rates helps avoid penalties and ensures compliance. Clear and updated property tax records are also important during Home Loan applications, as lenders verify municipal compliance before approval or disbursal. Using official online tools makes managing MCGM property tax simpler, more transparent and convenient for homeowners.
Apply now for a Home Loan.
FAQs
Q.1. What is the property account number for MCGM property tax?
A. It is a unique identification number assigned to every property for tax assessment and payment.
Q.2. Can I pay MCGM property tax in instalments?
A. Yes, instalment options may be available for eligible properties as per MCGM guidelines.
Q.3. How can I update my contact details with MCGM?
A. You can update details through the official MCGM portal or by visiting the ward office.
Q.4. Is property tax applicable to vacant land in Mumbai?
A. Yes, vacant land within MCGM limits is subject to property tax.
Q.5. What documents are needed to apply for property tax exemptions?
A. Ownership proof, property details and exemption-specific documents are usually required.
Disclaimer:
The content presented on this page, including images and factual information, is intended solely as a summary derived from publicly available sources. GHFL/GFL (“Company”) does not claim ownership of such information, nor does it represent that the Companies have exclusive knowledge of the same. While efforts are made to ensure accuracy, there may be inadvertent errors, omissions, or delays in updating the content. Users are strongly encouraged to independently verify all information and seek expert advice where necessary. Any decisions made based on this content are solely at the discretion and responsibility of the user. Godrej Capital and its affiliates assume no responsibility for any loss or damage that may result from the use of or reliance on the information provided herein.
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