Mumbai Residents Allege Steeper Property Tax Hikes Than BMC's Claimed 15% Cap

Mumbai’s residents are raising concerns over what they allege is a sharp and uneven spike in property tax bills—far steeper than the 15% hike officially announced by the Brihanmumbai Municipal Corporation (BMC).

Shock Over Higher-than-Claimed Hikes

While BMC stated that the property tax revision would be capped at 15%, several homeowners have reported receiving bills that indicate much steeper increases. For instance, a resident from Andheri West revealed that their annual tax shot up from ₹29,211 to ₹36,898 for 2025–26—an approximate jump of 26%. Similarly, a Bandra West property owner noted that their dues rose from ₹1.10 lakh to ₹1.36 lakh, reflecting a 23% rise.

Delayed Revision and Sudden Spike

This is the first revision in nearly a decade. The last property tax hike was implemented in 2015–16. A revision was due in 2020, but the COVID-19 pandemic and ensuing political instability delayed the move. BMC later stated that 2025 would complete the next five-year review cycle, making it an appropriate time to increase the rates.

Ready Reckoner Rates Push Up Valuations

Earlier in March 2025, the Maharashtra government had increased ready reckoner rates—the government-notified property valuation benchmark—by an average of 3.39%. This had already triggered expectations of a tax revision, as these rates directly influence property tax calculations under the capital value system.

No Change in Revenue Target, Say Officials

Despite the rate revision, BMC has not revised its property tax collection target for 2025–26, which remains at ₹5,200 crore. Officials mentioned that the impact of the hike across the city is still being assessed.

Criticism Over Lack of Governance

Former Bandra West corporator Asif Zakaria termed the hike "alarming", especially in light of the BMC functioning without elected representatives for the last three years. He also highlighted that the city is yet to resolve implementation challenges with the capital value-based assessment system.

Court-Ordered Reforms Still Pending

Residents and legal experts have pointed out that key directives from the Supreme Court and High Court to amend Rules 20, 21, and 22—rules that govern property tax assessment—remain unaddressed. These amendments are expected to reduce tax burdens by nearly 40% for the period between 2010 and 2024–25. However, no concrete action has been taken yet, and the increased burden continues to impact homeowners disproportionately.

Disclaimer: This article is based on public reports, resident statements, and official sources. Readers are advised to consult the BMC or a certified property consultant for specific tax-related clarifications.