Property Tax in Bangalore 2026-27: A Guide for Home Buyers
Property tax is a yearly charge that every owner of a flat, house or site in Bangalore pays to the city. This guide covers who collects it since the Greater Bengaluru Authority took over from the BBMP and how the bill is worked out. It also explains the early-payment rebate and the checks a buyer should run before paying for a home.
Who Collects Property Tax in Bangalore Now?
The Bruhat Bengaluru Mahanagara Palike (BBMP) was replaced by the Greater Bengaluru Authority (GBA), set up under the Greater Bengaluru Governance Act, 2024. On 2 September 2025, the city was divided into five corporations under the GBA: Bengaluru Central, North, South, East and West. Each corporation now handles property tax and khata work for the wards inside its limits.
Many owners and lenders still call it "BBMP tax", and the online payment portal kept its old name after the change. What changed is the office that sends the demand, so a buyer should note which of the five corporations covers the property. The way the tax is calculated stayed the same.
How Is the Property Tax Worked Out?
Bangalore uses a self-assessment scheme, so the owner files the details of the property and pays the tax that follows from them. The figures rest on the Unit Area Value (UAV) system, in which the city is split into six value zones, A to F, linked to the guidance values of each area. Zone A carries the highest rate per sq ft and Zone F the lowest.
The calculation runs in a fixed order. Each step is shown below:
- Built-up area in sq ft multiplied by the UAV rate per sq ft per month for the zone and the type of use
- That monthly figure multiplied by 10 months, which gives the gross annual value
- Depreciation for the building's age taken off, which gives the taxable annual value
- Property tax at 20% of the taxable annual value for residential use
- A cess of 24% of the property tax added on top
Self-occupied homes and rented homes
The UAV rate for a rented home is higher than the rate for a home its owner lives in, even in the same building. A flat that is let out but declared as self-occupied is under-assessed, and the city may raise a fresh demand for the difference later. An investor buying to rent should budget on the tenanted rate from the first year.
An example with assumed figures
The table uses an assumed UAV rate of Rs. 3 per sq ft per month for a new 1,200 sq ft self-occupied flat, with no depreciation. These numbers only show the method. The real rate depends on the zone and the use of the property.
| Step | Working | Amount |
|---|---|---|
| Gross annual value | 1,200 x Rs. 3 x 10 months | Rs. 36,000 |
| Property tax | 20% of Rs. 36,000 | Rs. 7,200 |
| Cess | 24% of Rs. 7,200 | Rs. 1,728 |
| Total for the year | Tax plus cess | Rs. 8,928 |
| After the 5% rebate | Rs. 8,928 less Rs. 446 | Rs. 8,482 |
The 5% Rebate and Payment Dates
Owners who pay the whole year's tax in one payment, within the rebate window, get 5% off the bill. For the 2026-27 tax year, the Government of Karnataka extended this window to 31 May 2026 for properties under the GBA and all five corporations. Owners who split the year's tax into two instalments do not get the rebate.
Tax that stays unpaid after the due date attracts a penalty and interest, and both keep growing until the dues are cleared. The rebate window for 2027-28 will be announced by the GBA, and in most years it opens in April. A home bought after the window has closed should be budgeted at the full annual figure for its first year.
Why Buyers Check the Tax Record Before Paying
Unpaid property tax is a charge on the property itself, so arrears left by a seller pass to the next owner. Within GBA limits, a valid e-khata has been required for registering a sale since October 2024, and the e-khata is tied to the property's ID and tax record. Pending dues can therefore hold up the e-khata, and with it the registration, the home loan and a later resale.
How to check the dues
The tax record can be pulled up on the official property tax portal with the property ID (PID) or the SAS application number. Both numbers are printed on earlier tax receipts and on the khata. The main points to look at are these:
- Payments for the current year and every earlier year, with any arrears shown
- The built-up area on record, matched against the actual flat
- The declared use (self-occupied, rented or commercial), matched against the real use
- The owner's name and address, matched against the sale deed and the khata
- The corporation and ward the property falls under
Who clears the arrears?
Arrears that built up while the seller owned the home are the seller's to pay, and the sale agreement should say so in writing. A common way to handle it is to release the final payment only once the tax account is clear and the e-khata is in place. Where dues remain on the day of the deal, the exact amount can be held back from the price and paid directly to the corporation.
New Flats and Resale Homes
In a new apartment project, individual tax assessments begin once the building is complete and the khata is split flat by flat. A buyer can ask the developer when the khatas will be issued and who pays the tax until then. The first tax payment in the buyer's name follows the khata transfer.
A resale flat already has a tax history, and the full record needs to be read before an advance is paid. After registration, the new owner applies to move the khata and the tax account into their own name. Keeping every yearly receipt makes the next sale or loan much simpler.
A-Khata, B-Khata and Property Tax
Properties with an A-khata and those with a B-khata both pay property tax. The B-khata marks a property that does not fully meet planning rules, and it can make a home loan or a resale harder. Paying the tax on a B-khata home keeps the account current, but it does not turn the property into an A-khata one.
Checklist Before Booking a Home
These checks take little time and protect the purchase. Run through them before any large payment:
- Get the PID or SAS application number and the latest paid receipt from the seller
- Read every year of the payment record on the official portal, not only the latest one
- Confirm the zone, built-up area and declared use on the record
- Check the khata type and make sure an e-khata has been issued
- Write the seller's duty to clear all dues into the sale agreement
- After registration, transfer the khata and the tax account into your name
Property tax adds a small amount to the yearly cost of a home compared with its price, so it is easy to overlook. Budget for it alongside maintenance and the loan payments, which the home loan EMI calculator helps to plan.