Property Tax on Rental Properties in Maharashtra | Rates, Payment & Exemptions

Did you know that in Mumbai alone, the property tax collected annually crosses thousands of crores?

Yet, many property owners renting out homes or offices still get confused about how much they owe and how to pay it.

If you own a rental property in Maharashtra, understanding property tax is more than just a compliance matter—it can affect your finances and even your tenants. Are you paying the correct amount? Are there ways to save legally?

This guide will break down property tax for rental properties in Maharashtra in simple language. You’ll learn how it’s calculated, who pays it, and the best ways to stay compliant—without getting lost in complicated forms or confusing municipal rules.

What This Blog Covers:

• Clear explanation of property tax on rental properties
• How property tax is calculated in Maharashtra
• City-wise property tax rates for rental properties
• Online and offline payment methods
• Exemptions, rebates, and FAQs

By the end of this blog, you’ll feel confident handling property tax for your rental property and avoid costly mistakes.

1. What is Property Tax on Rental Properties in Maharashtra?

Property tax is an annual fee charged by local municipal corporations on all types of properties, including rental homes and commercial spaces. Here’s what you should know:

• Who Pays? The property owner, even if the property is rented.
• Usage of Revenue: Funds roads, waste collection, water supply, and other local services.
• Penalties: Late payment can lead to fines or legal issues.

For example, imagine renting out a small apartment in Pune. Even though your tenant pays rent, the property tax remains your responsibility.

2. How is Property Tax Calculated for Rental Properties in Maharashtra?

Maharashtra uses the Capital Value System (CVS) for property tax. The amount depends on several factors including location, property size, and usage.

Property Tax Formula:

Property Tax = Base Value × Built-up Area × Age Factor × Usage Type × Floor Factor × Occupancy Factor

Key Factors:

• Base Value: Set by the municipal corporation, varies by location.
• Built-up Area: Larger properties pay more.
• Age of Property: Older properties may get lower rates.
• Usage Type: Rental and commercial properties have higher tax rates than self-occupied homes.
• Floor Factor: High-rise vs ground-floor properties may differ.
• Occupancy Factor: Rental properties may have a different rate than self-occupied ones.

Tip: Always check your local municipal website for updated rates.

3. Property Tax Rates for Rental Properties in Major Cities

Here’s a snapshot of typical property tax rates in Maharashtra’s major cities:

Mumbai (BMC)

• Residential Rental: 0.316% to 2.296% of capital value
• Commercial Rental: 0.652% to 3.907% of capital value

Example: A Mumbai apartment worth ₹50,00,000 may pay ₹15,800–₹1,14,800 annually.

Pune (PMC)

• Residential Rental: 0.264% to 1.83%
• Commercial Rental: Higher rates based on location and usage

Example: A Pune rental property worth ₹30,00,000 may pay ₹7,920–₹54,900 per year.

Other Cities (Thane, Nashik, Nagpur)

• Slabs vary depending on property type and location.
• Always verify rates on official municipal sites.

Read also: Maharashtra’s Hottest Property Markets to Invest in 2025 – discover the cities with the best opportunities.

4.How to Pay Property Tax Online in Maharashtra

Paying your property tax online is straightforward and saves you time. Here's a step-by-step guide to help you through the process:

1. Visit the Official Municipal Website

Depending on your city, visit the respective municipal corporation's website:

• Mumbai (BMC): https://ptaxportal.mcgm.gov.in/
• Pune (PMC): https://propertytax.punecorporation.org/
• Thane (TMC): https://propertytax.thanecity.gov.in/
• Navi Mumbai (VVCMC): https://vvcmc.in/
• Aurangabad (AMC): https://aurangabadmahapalika.org/

2. Select 'Pay Property Tax'

Look for the 'Pay Property Tax' or similar option on the homepage and click on it.

3. Enter Property Details

Provide necessary information such as:

• Property Account Number or Property ID
• Ward Number
• Billing Name
• Address

This information helps the system fetch your property tax details.

4. Verify Tax Amount

Once your property details are displayed, verify the tax amount due. Ensure all information is correct before proceeding.

5. Choose Payment Method

Select your preferred payment method:

• Net Banking
• UPI
• Debit/Credit Card

Ensure your payment method is active and has sufficient balance.

6. Make Payment

Follow the prompts to complete the payment. After successful payment:

• You will receive a confirmation message.
• A receipt will be sent to your registered email ID.

7. Download Receipt

Download and save the payment receipt for your records. It's advisable to keep a copy for future reference.

Offline Payment Option

If you prefer to pay offline:

• Visit Municipal Offices: Go to your local municipal corporation office.
• Authorized Banks: Some banks are authorized to collect property tax payments.
• Payment Methods: You can pay using cash, cheque, or debit/credit card.
• Obtain Receipt: Always ask for a receipt after making the payment.

Important Tips

• Timely Payment: Paying your property tax on time helps avoid penalties and interest charges.
• Record Keeping: Always keep a copy of your payment receipt for future reference.
• Stay Updated: Regularly check the official municipal website for any updates or changes in the payment process.

5. Exemptions and Rebates

Certain property owners may qualify for exemptions or rebates:

• Senior Citizens & Disabled Owners: Discounts for self-occupied homes
• Eco-Friendly Properties: Tax rebates for green features
• Heritage Properties: Some may be exempt
• Vacant Properties: Reduced tax for long-vacant homes

Check your municipal corporation website for eligibility.

Stay Compliant

Property tax in Maharashtra varies by city, property type, and municipal rules. Paying on time ensures compliance and avoids penalties. Keep an eye on municipal updates and manage your rental property efficiently.

For more real estate insights and tips, explore www.maadiveedu.com and read detailed property guides atwww.blog.maadiveedu.com

Frequently Asked Questions (FAQs)

1. Who is responsible for paying property tax on rental properties?

The property owner is legally responsible for paying property tax, even if the property is rented out.

2. Can tenants be asked to pay property tax?

No, tenants are not required to pay property tax unless it is explicitly mentioned in the rental agreement.

3. What happens if property tax is not paid on time?

Late payment may attract penalties, interest charges, and in some cases, legal action by the municipal corporation.

4. How is property tax calculated for rental properties in Maharashtra?

Property tax is calculated using the Capital Value System (CVS), based on factors like location, property size, age, usage type, floor, and occupancy.

5. Are rental properties taxed higher than owner-occupied properties?

Yes, rental and commercial properties generally incur higher property tax rates compared to self-occupied residential properties.

6. Can property tax paid on rental properties be claimed as a deduction?

Yes, property tax paid on rental properties can be claimed as a deduction while filing your Income Tax returns.