Mumbai: In the new financial year, Mumbaikars will bear an additional burden of a 15% hike in property tax. The Brihanmumbai Municipal Corporation (BMC) has started sending revised property tax bills to property owners. These bills reflect an average increase of 15.89%, following a restructuring of property tax.
On the other hand, the proposed solid waste management tax has been put on hold, following a recommendation by Chief Minister Devendra Fadnavis. However, the BMC administration has clarified that due to the changes in the 2025-26 Ready Reckoner rates, the revised tax bills have been issued in accordance with legal provisions, which mandate automatic updates based on the Ready Reckoner.
The revised bills indicate a 15.89% average increase in property tax, which will impact citizens financially.
Considering this additional burden on citizens, Chief Minister Devendra Fadnavis and Deputy Chief Minister & Urban Development Minister Eknath Shinde had suggested a re-evaluation of the proposed waste management charges. Acting on this suggestion, the BMC has decided to put the solid waste management charge on hold.
The BMC has reiterated that it has not made any changes or increases to the property tax structure or rates. The increase is a result of legally mandated updates linked to the 2025-26 Ready Reckoner values. These revised bills have been issued while adhering to all legal requirements.
Under Section 154 (1C) of the Mumbai Municipal Corporation Act, 1888, there’s a legal provision to revise the capital value of properties every five years. The last such revision took place in 2015. However, in 2020, during the COVID-19 pandemic, the BMC chose not to revise property values as a humanitarian gesture. Amendments to the law were made to facilitate this.
As a result, these property tax bills have been revised after a gap of ten years.
The special notices sent along with the tax bills state that “the capital valuation of the property is provisional”, indicating that the final bills will be determined subject to court rulings. The final payable amount may increase or decrease accordingly. Any excess amount paid will be adjusted in future bills.
Properties under 500 sq. ft. continue to be fully exempted from property tax, and hence, they have not been issued any revised tax bills. The BMC has clarified that there will be no charges imposed on these properties.
