Top Indian Cities with Highest Property Tax Collection in FY 2024-25

Property taxes are a crucial source of income for municipal corporations in Indian cities, funding public services and infrastructure improvements. However, tax rates and collections vary widely from city to city, impacting homeowners and investors differently.

The article identifies the Indian cities with the highest property tax rates for the year 2025, explains how property tax rates are computed, and summarizes key developments affecting property tax collections in India.

1. Mumbai

In Mumbai, property tax rates range between 0.316% and 2.296% of the government tax assessed capital value. For most residential holders of property, rates vary from 0.2% to 1.5%; however, properties with luxury features and those in premium wards can reach much higher rates. Notably, the Brihanmumbai Municipal Corporation (BMC) recorded an unprecedented ₹6,198 crore in property tax collections for FY 2024-25, driven by high property values and robust collection and enforcement efforts.

2. Bengaluru

Bengaluru imposes property tax rates that fall between 0.5% – 1% of the annual value of the property, calculated using the Unit Area Value method. The Bruhat Bengaluru Mahanagara Palike (BBMP) collected close to ₹4,930 crore in taxes for FY 2024-25, thanks to strong enforcement, digitization, and the auctioning of properties of defaulters for the first time.

3. Hyderabad

Hyderabad operates a slab-based property tax system, with tax rates generally varying from ₹0.5 to ₹3 per sq ft based on property classification on a monthly basis for residential properties. The Greater Hyderabad Municipal Corporation (GHMC) officially collected ₹2,038.42 crore in property tax for FY 2024-25.

4. Delhi

Delhi property tax rates range from 0.5% to 3% of the property’s annual value, based on location, zone, property characteristics, and use. The Municipal Corporation of Delhi (MCD) collected approximately ₹2,024 crore for FY 2024-25, though it fell short of its ambitious target. Premium zones with high property values experience the most substantial civil tax outflows.

5. Chennai

Chennai's property tax rates are determined based on the property's annual value, with rates typically ranging from 0.5% to 2%. The Chennai Metropolitan Development Authority (CMDA) and the Chennai Corporation have been working to streamline the collection process and improve transparency. For FY 2024-25, the city collected around ₹1,800 crore in property taxes, reflecting a growing emphasis on efficient tax collection and public service improvements.

These cities' high property tax collections highlight the importance of effective municipal governance and the role of property taxes in funding essential services and infrastructure projects.