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The local municipal body in Karnataka imposes property tax on real estate properties such as residential, commercial, and industrial building plots. This tax generates revenue for the government to provide citizens with various civic services and amenities. The Bruhat Bengaluru Mahanagara Palike (BBMP) is responsible for collecting property tax in Bengaluru. Similarly, other municipal bodies like City Municipal Councils (CMCs), Town Municipal Councils (TMCs), and Town Panchayats collect property taxes from their respective areas.
Property tax in Karnataka depends on the property's location and type. Authorities use two main methods for calculation:
1. Unit Area Value (UAV) System
Urban areas like Bengaluru follow the Unit Area Value (UAV) system. This method calculates tax based on the property's potential rental income, considering its location, usage, and built-up area. The formula used is:
Property Tax = (Annual Rateable Value × Built-up Area) × Applicable Tax Rate
The Annual Rateable Value (ARV) depends on the property's zone and type, whether residential or commercial.
2. Capital Value System (CVS)
Some municipalities use the Capital Value System (CVS). Here, property tax is a percentage of the market value, which is determined based on the guidance value set by the state government.
Residents of Karnataka can use the property tax calculator on the official website to get the exact property tax assessment.
Residents can pay Karnataka property tax online. Here are the steps to proceed:
Visit the official Karnataka One website
Click on Municipal -> Payment of Property Tax -> Avail Online
Next, select the location of the property
You can create an account, sign in to your existing account, or use the Quick Pay -> Pay Property Tax Online option to pay the property tax
Enter the Property Identification Number (PID) corresponding to your property
You can find the property tax amount on the next page
Click on ‘Continue for Payment’
You can pay your property tax using a credit card, debit card, or net banking
Once you finish the payment, download the payment receipt
Residents of Karnataka can also pay their property taxes offline through the collection centres. Here are the details:
To pay your property tax in person, you can check out the list of available banks from the official portal
Bengaluru residents can also pay property tax through partner banks, which can be found on the official portal
You can get the address of the bank nearest to you and pay your property tax offline
It is also possible to pay your property tax at the revenue department offices in your locality
You may get a transaction number after completing the online property tax payment. You must know the 12-digit transaction number to download the payment receipt online. Follow these steps:
Go to the Karnataka One website
Click on ‘GET YOUR RECEIPT’
In the given box, enter the 12-digit transaction number
When you click on Submit, you can get the receipt
You can also pay your property tax using the Karnataka One mobile app. The Karnataka One Mobile Application is an all-in-one platform to access varied government services. It is available for Android devices and can be downloaded for free from the Google Play Store.
You can use the mobile application to explore the Property Tax section to view your property tax and pay it directly from the mobile application.
The properties given below are exempted from paying property tax in Karnataka:
Properties used for public worship.
Choultries where no rent is charged and are used for charitable purposes.
Shelters for destitute individuals, orphanages, homes for the disabled, and similar institutions run on philanthropic lines.
Properties protected under the Karnataka Ancient and Historical Monuments and Archaeological Sites and Remains Act, 1961 and the Ancient Monuments and Archaeological Sites and Remains Act, 1958.
Charitable hospitals and dispensaries (excluding residential quarters).
Government-notified hospitals and dispensaries run by railway administrations (excluding residential quarters).
Recognised burial and cremation grounds listed in the Commissioner’s official notifications.
Government lands designated for recreational use, provided no income is derived.
Properties that are exclusively used as non-profit student hostels or for educational purposes by recognised institutions.
Offices of trade unions registered under the Trade Union Act, 1926.
Properties owned by the state or Central Government used for government purposes.
Lands and buildings under the Karnataka Urban Development Authorities Act, 1987 or Bangalore Development Authority Act, 1976.
Land acquired by government agencies where ownership is not yet transferred.
Agricultural land registered and used exclusively for agricultural purposes.
Citizens must pay penalties for not paying property tax on time. The Karnataka government amended the Bruhat Bengaluru Mahanagara Palike (Amendment) Act, 2024, to reduce penalties on property tax arrears in Bengaluru. The penalty was reduced from double the amount to an equal amount. A cap limit of ₹100 for ₹100 of the unpaid tax for one financial year was set, but this relief was valid until March 31, 2025.
Starting from April 1, 2025, the government may implement a 100% penalty on unpaid taxes along with an annual interest rate of 15%.
Here is how you can go about it:
File the grievances on the official portal
Contact the Joint Commissioner of Revenue, NR Square, BBMP, Bengaluru directly
Call on 080-49203888 or 8904085030
Write to the authorities at: onehelpdesk@karnataka.gov.in
You must learn about property tax assessment and paying taxes online to ensure timely payments. You can use the official portals to get the latest information on property tax in Karnataka and keep a copy of your payment receipts for future reference.
Property taxes in Karnataka are primarily utilised to fund and maintain essential civic infrastructure and services. This includes the development and upkeep of roads, drainage systems, parks, waste management, and other public amenities. For instance, the Bruhat Bengaluru Mahanagara Palike (BBMP) uses these funds to enhance the city's infrastructure and ensure the delivery of basic services to residents.
Yes, the BBMP provides an online platform for property owners in Bangalore to pay and track their property tax payments. The BBMP Property Tax System allows users to access their payment status and other related details. Additionally, users can check the status of their property tax payments through the Karnataka government's service portal.
In Karnataka, a Property Identification Number (Property ID or PID) is a unique identifier assigned to each property, especially within BBMP limits. This PID is crucial for efficient property tax management, enabling property owners to pay taxes, track payment histories, and access property-related information seamlessly.
Form 9 is a document issued by the Gram Panchayat for non-agricultural properties within its jurisdiction in Karnataka. As per the Karnataka Panchayat Raj (Grama Panchayat Budgeting and Accounting) Rules 2006, Amendment Rules 2013, Form 9 serves as an official record validating the property's status as non-agricultural. It is essential for property registration and tax assessment purposes.
In Karnataka, property tax rates differ based on the occupancy status of the property:
Self-Occupied Properties: These are properties where the owner resides. They are taxed at a standard rate.
Tenanted Properties: Properties rented out to tenants are typically taxed at higher rates than self-occupied properties. For instance, in Bangalore, the BBMP's new property tax structure requires tenanted residential properties to pay twice the tax amount compared to self-occupied ones.
It's essential for property owners to declare the correct occupancy status to ensure accurate tax assessment.
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