Who is responsible for paying property tax: tenant or owner?
The property owner is legally responsible for paying municipal property tax, regardless of tenancy agreements.
Annual property tax from assessed value and local rate.
Estimates annual municipal property tax dues based on built-up area, property classification, construction age, and local municipality unit area values.
Property Tax = Built-Up Area × Base Value per Sq.Ft × Age Factor × Structure Factor × Occupancy Factor × Tax Rate
Calculated using the Unit Area System (UAS) or Capital Value System adopted by urban municipal corporations.
Inputs: Area = 1,200 sq.ft | Base Rate = ₹2.50/sq.ft/month | Age Factor = 0.9 (10 years) | Occupancy = Self-Occupied (1.0)
Summary: Built-up Area = 1,200 Sq.Ft | Annual Rateable Value = ₹32,400 | Net Annual Property Tax = ₹6,804
The property owner is legally responsible for paying municipal property tax, regardless of tenancy agreements.
Older properties generally have lower depreciation factors, resulting in slightly lower annual rateable values.
Municipal authorities can issue legal recovery notices, freeze property registry mutations, and auction properties to recover tax dues.