What is the property tax rate in Delhi?

In Delhi, property tax is levied by the Municipal Corporation of Delhi (MCD) after the 2022 merger of three corporations. It is calculated using the Unit Area Value (UAV) system, where tax is based on per-sqft rates assigned to different property categories and colonies.

MCD Property Tax Formula

Annual Property Tax = Annual Value × Rate of Tax
Annual Value = Unit Area Value × Unit Area of Property × Occupancy Factor × Use Factor × Age Factor × Structure Factor × Flat Factor.

Property Tax Rates in MCD

• Residential properties: 6% to 12% of Annual Value (varies by colony category).
• Commercial properties: 15% to 20% of Annual Value.
• Industrial properties: 10% to 15%.

Key Exemptions in Delhi

• Properties with annual value below ₹20,000 exempted from tax.
• Ex-servicemen (100% exemption on one residential property).
• War widows and persons with disability.
• Central government-notified charitable institutions.

Delhi's MCD property tax follows a colony-category-based unit area value system. Early payment rebates and clear exemptions for low-value and special-use properties make it relatively structured.