Property Tax in Delhi: MCD Rules and Payment Guide

Posted on: Apr 16, 2025 | 3 mins | Written by: HDFC ERGO Team

Property Tax in Delhi: MCD Rules and Payment Guide

Property tax in Delhi: MCD way

Taxation is another word for burden. Yes, it is a burden that you carry to acquire property as well. The Municipal Corporation of Delhi (MCD) levies property tax on property owners. The property tax in Delhi is calculated as per annual property value and the funds are used by the government for the development of local infrastructure and services. The Municipal corporations in Delhi are divided into regions like North Delhi Municipal Corporation (NDMC), South Delhi Municipal Corporation (SDMC) and East Delhi Municipal Corporation (EDMC).

The Tax Rates in Delhi for Various Property Categories

There are various categories the entire region is divided into which are looked after by the 3 Municipalities.

Property Tax Rates of Delhi 2023-24
Tax Rates	Property Categories
	A	B	C	D	E	F	G	H
Rates/Sq. Metre	Rs. 630	Rs. 500	Rs.400	Rs. 320	Rs.270	Rs.230	Rs.200	Rs.100
Residential Tax Rates	12.00%		11.00%			7.00%
Commercial Tax Rates	20.00%		20.00%			20.00%
Industrial Tax Rates	15.00%		12.00%			10.00%

Divisions of Municipal Corporation to pay property tax in Delhi.

The 8 property categories from A to H come under the three municipalities: North Delhi Municipal Corporation (NDMC), South Delhi Municipal Corporation (SDMC) and East Delhi Municipal Corporation (EDMC). The tax rates per square metre also vary as per the types of properties like, residential, commercial or industrial. These three municipalities are responsible for collecting taxes as per the regions assigned. The tax rates differ based on property types for instance, a residential property in the A and B categories is taxed at 12%.

Calculating Property Tax in Delhi

Now that you know about the factors involved in property tax in Delhi, the final calculation can be explained with a mathematical formula. The formula that MCD uses to calculate house tax is:

Property Tax = Annual value X Rate of Tax

The formula for Annual Value involves :

Annual Value = Unit area value per square metre x Structure factor x Age Factor x Covered area of property x Use factor x Occupancy factor

For example, if you want to calculate the property tax in Delhi which is new, residential and comes under category A.

Unit area value per square metre: Rs.630

Unit area of property: 100 sq. meters

Age Factor: 1 (for new property)

Structure factor: 1 (based on standard construction)

Used factor: 1 (based on residential use)

Occupancy factor: 1 (assuming it is fully occupied, self or rented)

Hence , the annual value = 630 x 1 x 1 x 100 x 1 x 1 = 63,000/-

Since it is category A in residential property, the standard tax rate as per the table above is 12%.

Hence, Property Tax = Annual Value x Tax rate

= Rs.63000 x 12%

= Rs.7560

How to Pay Property Tax in Delhi?

You can follow these 8 steps to make payment for property tax in Delhi, either online or offline :

Steps	Online Process	Offline Process
Step 1	Select your area from the official website of MCD	Find out the nearest MCD office in your area from the official website of Delhi municipality.
Step 2	Click the 'Property Tax' tab and then click on 'Online Filing of Property Tax Returns'.	Request for a property tax challan form from the designated counter.
Step 3	Then accept the terms and conditions and select 'Click Here to File Property Tax'	Fill up the challan with information in regards to ownership details, property assessment number and details of the property as mentioned.
Step 4	You can either input your property ID if you have it or select the option of 'Click Here to File Your Return if Property ID has not been Alloted earlier'.	You can either calculate the amount of property tax based on the property type, area coverage and location as per property category or you can ask for this information from the MCD office.
Step 5	Fill in the details like type of property, ownership, property number, address, contact details and tax calculation details.	Once you know the amount, submit the same with the tax payment challan to the designated counter for collection of tax.
Step 6	Input details about any pending payments from earlier years including arrears etc.	The amount can be paid in cash or demand draft or by any method as specified by MCD.
Step 7	Recheck the details, verify each detail with the property documents you have and submit the filled form by clicking on the 'Accept' button.	Once payment is done, a receipt will be issued to you as proof of property tax payment.
Step 8	You can then download your property tax bill.	File the acknowledgement safely as it has all the information like transaction ID, payment amount, dates etc.

Penalty Levied for Delayed Property Tax Payment

The deadline for tax payments is sacrosanct. If you fail to make payment within the due date, a penalty of 1% on the unpaid amount is levied each month starting from the first day after the due date. You need to make a lump sum payment of property tax by the 30th of June each financial year.

Conclusion

With so much at stake, it can be said that to keep “the roof on your head” safe and secured, you need to think beyond just paying taxes. An insurance which provides comprehensive coverage, to protect your property or house from some imminent disasters like theft, vandalism, floods, fires and storms. A property insurance like HDFC Ergo’s comprehensive plans, not only protects the property but also the belongings inside. It can be a residential home, a shop floor or even a factory, the comprehensive plan safeguards the structure as well as your belongings from any unforeseen events giving you much-needed financial relief. Owning a home is a dream come true for anyone. So along with complying with taxation rules, invest wisely in home insurance as well to have all-around armour that can protect you and your family.

Frequently Asked Questions

1. How to make payment of Property Tax in Delhi?

You can make payment for property tax online by visiting the MCD website and following the self-explanatory steps or offline by visiting any nearest MCD office and submitting the property tax challan along with cash or demand draft or any other mode that the municipality office allows.

2. How to get a Property ID for house tax in Delhi?

Property ID is the number assigned to your property and can be found easily on the previous year's tax receipts. In case you are making the payment for the first time or have lost the earlier receipts, the MCD can help you locate your ID with information like your property zone, location, colony and exact address.

3. When is the last date of the House Tax payment in Delhi?

The 30th of June every financial year is the last date for payment of Property Tax in Delhi.

4. How much is the property tax rebate in Delhi for 2023-2024?

All Delhi residents who pay property tax within the deadline of 30th June are entitled to a rebate of 15% every year.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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