Property tax is an annual levy imposed by municipal corporations on property owners for maintaining civic infrastructure and public services. In Bengaluru, the Bruhat Bengaluru Mahanagara Palike (BBMP) collects property tax from residential, commercial, and industrial property owners. This tax is a crucial revenue source for the BBMP, funding roads, drainage systems, waste management, water supply, and public facilities.

For 2025, BBMP has revised its property tax structure, with updated rates and an emphasis on digital payments and compliance. The Unit Area Value (UAV) system continues to be the method used for tax calculation, ensuring a fair assessment based on location, property type, and usage. This article explains how BBMP property tax is calculated, payment deadlines, rebates, and important updates for Bengaluru residents in 2025.

The BBMP follows the Unit Area Value (UAV) system, which assesses property tax based on:

• The locality of the property (classified into zones A to F based on market rates)
• The type of property (residential, commercial, industrial, vacant land, etc.)
• Occupancy status (self-occupied or tenanted)
• The built-up area of the property

BBMP divides Bengaluru into six value zones, with Zone A representing high-value premium locations and Zone F representing low-value areas. The tax rate varies depending on the zone in which the property is located.

BBMP Property Tax Formula

BBMP calculates property tax using the following formula:

Property Tax (K)=(G-I)×20%+Cess

Where:

• G (Gross Unit Area Value) = (Tenanted Area × Rate per sq. ft. × 10 months) + (Self-Occupied Area × Rate per sq. ft. × 10 months) + (Parking Area × Rate per sq. ft. × 10 months)
• I (Depreciation Amount) = G × Depreciation Rate (based on property age)
• Cess = 24% of the property tax amount (used for urban development)

This system ensures a transparent and uniform tax structure across Bengaluru.

BBMP follows a strict payment schedule to ensure timely tax collection. Property owners must adhere to the following deadlines:

• Annual Tax Payment Window: April 1, 2025-March 31, 2026
• Rebate for Early Payment: A 5% rebate is available if the full property tax is paid before April 30, 2025.
• Late Payment Penalty: A 2% interest per month is charged on delayed payments.

Timely payment helps avoid penalties and legal actions by BBMP.

• Enhanced Digital Services: BBMP is improving its online portal for real-time tax calculations, payment tracking, and digital receipts.
• E-Property Cards: Property owners can now download e-property cards with updated tax details.
• Zonal Reclassification: Some areas may be reclassified into different value zones, potentially affecting tax rates.

Pro Tip: Property owners should regularly check official BBMP notifications to stay informed about any rate revisions or policy changes.

The BBMP property tax system in Bengaluru remains a structured and transparent mechanism for funding city infrastructure. Homeowners must be aware of their tax obligations, due dates, and payment options to avoid penalties and maximize rebates.

By paying property tax on time and using the BBMP online portal, property owners can simplify the process and contribute to Bengaluru's urban development.