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Property Tax Calculator

What is Property Tax?

Property tax is levied by the government through local municipal authorities on the real estate owners. The tax collected is utilized to maintain civic amenities such as roads, sewage, parks and other local infrastructural facilities. The property tax varies with respect to the area and is imposed on both residential and commercial real estate. The civic bodies use different property tax calculators to assess the amount to be levied but a standard formula is used throughout the country to decipher the amount of property tax.

How is Property Tax Calculated?

Property Tax is calculated by the municipal authorities after factoring in and assessing diverse set of factors such as:

  • The method employed by the state or municipality to determine the property tax.
  • Details concerning to the locality like type and age of the property, status of occupancy and total surface area of the property

The property owners can also check the amount which would be levied on them through various property tax calculators available online. Enter the required details accurately and the property tax calculator will provide you with an accurate estimation. The property tax calculator employs the following formula:

Property Tax = Base Value * Built-up Area * Properties' Age* Properties’ Type * Properties' Usage * Floor Factor

How to Pay Property Tax Online

  1. STEP 1:Visit the official website of your respective municipality and find the tab designated to property tax to navigate the payment option.
  2. STEP 2:Select the Form (4 or 5) based on the category under which your property falls.
  3. STEP 3:Select the assessment year. You can also avail the option to clear any backlogs you might have on the property taxes.
  4. STEP 4:Enter the property identification number and attach the required documents.
  5. STEP 5:After mentioning all the relevant details, choose a mode of payment from the various options available.
  6. STEP 6:Take out a print out of the Challan which is to be submitted in the local municipality.

How to Calculate Income from House Property?

The income from the house property can be calculated by accounting the following points:

  • Only the net annual value of the property i.e. the gross annual value after deducting property tax is examined for taxation.
  • Only the months on which the rent was received is considered as income, no tax shall be charged for the duration where the property was lying vacant.


Which house property incomes are exempted from property taxes?
  • Establishments around agricultural land
  • Property income from land in the name of political parties
  • Proceeds earned from a property allotted to scientific associations.
  • Income on property of educational and medical institutions, religious organizations and charities.
Aren’t Property tax and house tax the same?

Although both property and house tax are collected by the local government authorities. Property Tax covers a broader concept as it is levied on all types of properties be it residential, institutional and commercial. However, the house tax is exclusively for residential property. You can say house tax is a subset of property tax.

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