Bengaluru: Property tax increased by 6.5% for houses under BBMP, effective from April
By Vinaykumar Patil | First Published Mar 13, 2024, 10:52 AM ISTBengaluru's property tax system is changing, with rates set to increase by 5.3% to 8.2%. The first revision since 2016 introduces six categories and a 10% annual cap on tax increases. Despite adjustments, the aim is to simplify and rationalize the system, with increases lower than those in 2016.
Residents and property owners in Bengaluru should gear up for an upcoming change in the city's property tax system, set to take effect from April onwards. Deputy Chief Minister D.K. Shivakumar unveiled the details of this new system, which will see tax rates on model properties across the city rise by a minimum of 5.3% to a maximum of 8.2%.
This adjustment marks the first revision of property tax rates since 2016, translating to eight years without any tax increment. In the previous revision, residential properties experienced a 20% increase, while non-residential properties faced a 25% hike.
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Under the revamped system, property owners will now face an annual cap on tax increases, set at 10%. Notably, approximately 18 lakh property owners in Bengaluru were previously exempt from property tax obligations, but Shivakumar emphasized the necessity for all properties to come under this tax payment system.
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Usually, properties in the city were categorized into 18 models for taxation purposes. However, the new system introduces six classifications: residential (including private residences and rentals), non-residential, commercial, industrial, star hotels, and vacant sites, with the possibility of up to a 10% annual tax increase across these categories.
Despite the adjustments, officials ensure that the primary objective of the new property tax system is not to overburden taxpayers but to simplify and rationalise the existing framework. Comparatively, the anticipated property tax increase of 6.5% under the new system is notably lower than the previous hike experienced in 2016. Breaking down the expected tax increase for various property types, residential properties will witness a 6.7% rise, non-residential properties at 6.5%, industrial properties at 5.3%, star hotels at 6.6%, and vacant sites potentially facing an 8.2% increase.
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