Property tax in India is the tax which is imposed on assets such as land, buildings, and so on by the government, regardless of their location and uses. Property tax is the primary source of income for the Tamil Nadu government. The calculation is done at the state level, however, the panchayats and municipal corporations are responsible in Tamil Nadu.
In this article, let us walk you through the payment procedure, different tax rates, and recent revisions.
Table of contents
Property Tax Rates Across Tamil Nadu
The properties of the group are as follows:
- Opulent areas with all the basic amenities
- Opulent areas with just one or two basic amenities
- Mid-income areas have the amenities of every basic
- Mid-income areas without any amenities
- Short-income areas with every basic amenity
- Short-income areas without any basic amenities
| Group | Chennai (in INR) | Municipalities (in INR) | Town Panchayat (in INR | Other Corporations (in INR) |
| 1 | 2.00 to 2.25 | 1.50 to 2.00 | 1.00 to 1.75 | 1.75 to 2.50 |
| 2 | 1.75 to 2.00 | 1.25 to 1.75 | 0.80 to 1.50 | 1.50 to 2.00 |
| 3 | 1.50 to 1.75 | 1.00 to 1.50 | 0.75 to 1.25 | 1.25 to 1.75 |
| 4 | 1.25 to 1.50 | 0.75 to 1.25 | 0.50 to 1.00 | 1.00 to 1.50 |
| 5 | 0.75 to 1.25 | 0.05 to 1.00 | 0.30 to 0.75 | 0.75 to 1.25 |
| 6 | 0.50 to 1.00 | 0.40 to 0.75 | 0.15 to 0.50 | 0.50 to 1.00 |
| Property’s Age | Rate of Discount |
| 10 to 10 years | About 5% |
| 11 to 20 years | About 10% |
| 21 to 30 years | About 20 % |
| More 30 years | About 30% to 40% |
| Construct Type | Additional Value of Retail |
| Covering Roof | Nil |
| Concrete | 10 percent |
| Tilled Roof | 20 percent |
| Concrete Roof with cement/mosaic/clay | 75 percent |
| Marbled floor with concrete roof | 125 percent |
| High Rise | Additional 30 percent |
| Building Uses | Additional Value of Retail |
| Shed /Godown | 50 percent |
| Trading space | 15 percent to 200 percent |
| Rented out hall for private uses | 150 percent |
| Industrial | 100 percent |
| Institution | Non-charitable 100 percent and charitable – Nil |
| Hotels | High standard 300 to 400 percent and other ranges for 100 to 200 percent |
| Residential | Nil |
The below-mentioned table gives information about the property tax rates that are levied on the AVR across Tamil Nadu.
| Area Type | Minimum Rate | Maximum Rate |
| Town Panchayat | 15% | 30% |
| Corporation | 20% | 40% |
| Municipalities | 15% | 35% |
Required Documents for Registration Form
- Receipt of the last tax payment
- No Objection Certificate (NOC) via the housing society
- Attested copy of sale transaction deed/sale deed with individual’s name on it
- Duly signed and filled out
The documents mentioned above must be submitted for verification to the Revenue Commissioner investigating the case. Once the verification is completed, it would take 15 to 30 days to register the property.
How is Property Tax in Tamil Nadu calculated?
Property taxes are calculated based on the property’s Annual Rental Value (AVR) and Budget Variance Report (BVR). Check out the below-mentioned formula for Tamil Nadu property tax calculation:
The total AVR is equivalent to the AVR of the covered space + the total AVR of uncovered space.
The AVR of uncovered space will be equivalent to 12 x (½) x BVR x uncovered area in square feet.
The area of the covered area can be defined by the multiplication of the relatable value, including the addition of 12.
The property tax of an apartment building or flat is calculated on the basis of the basement floor area. The rate varies based on where the property is located. The use of the property is also key to the calculation, as the tax rates for residential and commercial properties differ. The occupancy type and total span of the existence of the building are also additional factors for the tax calculation.
Who Collects Property Tax in Tamil Nadu?
In Tamil Nadu, there are several municipal corporations to which residents can pay their property taxes. To make your property tax payment, you must find the jurisdiction under which your property is located. After knowing the jurisdiction, you can make an online or offline payment for Tamil Nadu property tax.
Property taxes in Tamil Nadu need to be paid on time. Are you wondering why you make tax payments? Or why is it essential to make it before the due date? Failure to make a timely payment will result in a penalty of 1% per month.
How to Pay Property Tax in Tamil Nadu
The government of Tamil Nadu has both online and offline modes by which individuals can make tax payments. Check out the below-mentioned modes to make the payment of Tamil Nadu property tax:
Property Tax Online Payment in Tamil Nadu
The Tamil Nadu government has an online portal where individuals can pay their property tax online. The online procedure for making property Tamil Nadu property tax is similar in the different cities of TN.
The below-mentioned step-by-step process is for making online payments if the property is within the limit set by GCMC (Greater Chennai Municipal Corporation).
Step 1: Visit the official portal of the Greater Chennai Municipal Corporation.
Step 2: Search for the ‘Online Civic Services’ and click on the ‘Property Tax Online Payment’.
Step 3: Fill out location and address details. After that, click on the ‘Submit’ button.
Step 4: Now click on the ‘Pay Online’ button and choose your payment option according to your preference.
Step 5: Make payment via credit, debit card or net banking.
Property Tax Offline Payment in Tamil Nadu
If you wish to make an offline payment, you can do so at the below-mentioned locations:
- Tax collector’s office
- E-Seva centres
An individual can make offline payments by cash, cheque, or demand draft. You can also make payment at the nearest lender’s branch office.
How to Download the Tamil Nadu House Tax Payment Receipt?
After paying the Tamil Nadu property tax, it is important to maintain a file with all the payment receipts. Check out the below-mentioned step-by-step process to download the tax payment receipt.
Step 1: Visit the official portal of the Chennai Corporation.
Step 2: Click on the ‘Online Tax Payment’ option.
Step 3: Now click on the ‘Online Payment Receipt’ option.
Step 4: Fill out the details such as division code, bill number, zone number and sub number.
Step 5: Click the ‘Submit’ button once you complete the details.
Step 6: Review your account details and click on the ‘View Tax and Receipt Details’ button.
Step 7: You will be redirected to the payment details page, where the first row will show you the latest payment.
Step 8: Click the ‘Print Receipt’ button to get a soft copy of the payment.
Due Date of Property Tax Payment in Tamil Nadu
The due dates for Tamil Nadu property tax are the 31st of March and the 30th of September each year. The property tax owner must make the payment before the due date. If the individual fails to pay the tax amount, the person will be liable to pay a penalty of 1% per month.
Frequently Asked Questions (FAQ’s)
How is the property tax in Tamil Nadu (Chennai) calculated?
The property tax is not the same in every state. In Tamil Nadu, property tax is calculated based on AVR (Annual Rental Value).
Can I pay house taxes online in Tamil Nadu?
Yes, you can pay your property tax online in Tamil Nadu. Offline payment is also available. However, online tax payment is more seamless and hassle-free as it is more secure, and you can make the payment from the comfort of your home.
Is there any penalty for the late payment of Tamil Nadu property tax?
Yes, making the payment is necessary. If the individual fails to make the payment on time, they will be liable to pay a penalty of 1% per month.
How can I download the Tamil Nadu House Tax Payment Receipt?
To download the Tamil Nadu house tax payment receipt, you need to visit the official website of the Chennai portal. After visiting the website, search for the payment history option. After that, select the receipt and click on the print receipt option.
