If you own a home, shop, office or plot in the capital, property tax in Delhi is an annual bill you cannot ignore. The good news: the Municipal Corporation of Delhi (MCD) has moved almost the entire process online, so paying your house tax now takes minutes rather than a morning in a queue. This guide walks you through how to pay property tax in Delhi, how it is calculated, the category-wise rates, the rebates worth claiming, and the deadlines to watch in 2026.
Table of Contents
- What is MCD property tax?
- Who has to pay property tax in Delhi?
- How property tax in Delhi is calculated (Unit Area System)
- Category-wise rates and unit area values (A–H)
- A worked example
- How to pay property tax in Delhi online
- How to pay offline
- Property tax payment for NRIs
- Rebates and exemptions
- Deadlines, penalties and amnesty
- How to download your receipt & Nil Dues Certificate
- Common mistakes to avoid
- Frequently asked questions
What is MCD property tax?
MCD property tax is an annual levy the Municipal Corporation of Delhi charges on land and buildings within its limits residential homes, commercial units, industrial premises and even vacant plots. The money funds the everyday civic machinery of the city: sanitation, roads, street lighting, parks, drainage and local infrastructure.
A quick bit of context that trips people up: Delhi’s three former corporations North, South and East were merged back into a single, unified MCD in May 2022. That means one portal, one login and one tax record for most of the city. Two pockets sit outside MCD: properties in the NDMC area (Lutyens’ Delhi, Connaught Place and surrounds) pay the New Delhi Municipal Council, and properties inside the Delhi Cantonment pay the Cantonment Board. Everything else the overwhelming majority of Delhi is MCD.
Who has to pay property tax in Delhi?
The registered owner is legally responsible for the tax, not the tenant. A few practical points worth knowing before you buy or rent:
- Joint owners share the liability in proportion to their share.
- After a purchase, the new owner must complete mutation in MCD records to move the property into their name.
- Builders are liable for tax on unsold units.
- Even a vacant plot inside MCD limits can attract tax.
Buyer’s tip: Unpaid property tax is a charge on the property, not a personal debt of the seller. If old dues exist, MCD can pursue you after you buy. Always confirm zero dues on the UPIC before you sign more on this in the Nil Dues Certificate section.
How property tax in Delhi is calculated (Unit Area System)
Delhi follows the Unit Area System (UAS), a self-assessment method that keeps the maths transparent. Rather than a valuer’s opinion, the tax is built from fixed factors published by MCD. The formula has two steps:
Step 1 Annual Value:
Annual Value = Unit Area Value × Covered Area × Age Factor × Use Factor × Structure Factor × Occupancy Factor
Step 2 Property Tax:
Property Tax = Annual Value × Rate of Tax (for your colony’s category)
What each factor means
- Unit Area Value (UAV): a rupee value per square metre fixed for your colony’s category (A to H).
- Covered area: the total built-up area in square metres walls, balconies, garage and staircase included, not just carpet area.
- Age factor: ranges from 0.5 to 1.0. Newer construction is taxed higher; older buildings get relief.
- Use factor: depends on how the property is used residential attracts the lowest, commercial the highest.
- Structure factor: reflects construction type (for example, RCC/pucca versus lower-grade structures).
- Occupancy factor: self-occupied homes are taxed lighter than rented ones.
Category-wise rates and unit area values (A–H)
Every Delhi colony is slotted into a category from A (the most premium areas) to H (the least developed). The unit area value and the residential tax rate both scale with the category. The table below shows the widely-applied structure:
| Category | Unit Area Value (₹/sq m) | Residential rate | Commercial rate |
|---|---|---|---|
| A | 630 | 12% | 20% |
| B | 500 | 12% | 20% |
| C | 400 | 11% | 20% |
| D | 320 | 11% | 20% |
| E | 270 | 11% | 20% |
| F | 230 | 7% | 20% |
| G | 200 | 7% | 20% |
| H | 100 | 7% | 20% |
Industrial property is generally taxed at 15% of annual value across categories; residential and non-residential farmhouses at 20%. Rates and unit area values are set by MCD and can be revised always confirm the current year’s figures on the MCD portal before you calculate.
A worked example
Say you own a 100 sq m, self-occupied, pucca home in a Category B colony, built a few decades ago (age factor 0.6). Using the Unit Area System:
- Annual Value = 500 × 100 × 0.6 × 1 × 1 × 1 = ₹30,000
- Property Tax = ₹30,000 × 12% = ₹3,600 for the year
Change any input a rented unit, a commercial use factor, a newer age factor and the number moves. Treat hand calculations as an estimate; the portal computes the final, authoritative figure.
How to pay property tax in Delhi online
The fastest route is the official MCD portal. Keep your UPIC (Unique Property Identification Code a 15-digit code printed on your last receipt) handy.
- Go to mcdonline.nic.in and open Pay Property Tax.
- Log in with your registered mobile number and OTP. New users can sign up first; you can also log in via email OTP.
- Your property appears on screen with its UPIC, owner name, address and type. If you don’t have a UPIC yet, use Search Property or apply for a new UPIC.
- Click Actions → Pay Tax, then select the financial year (currently FY 2026-27).
- The portal asks whether any property or ownership details have changed since the last payment. Edit if needed, otherwise proceed.
- Review the calculated tax, choose your payment method UPI, net banking, debit or credit card and pay.
- Once you see Success, download the receipt for your records.
Prefer your phone? The official MCD mobile app offers the same UPIC-based login and payment flow.
How to pay property tax offline
If you’d rather pay in person, MCD keeps two offline options open:
- ITZ cash counters: there are several hundred across Delhi. Carry your UPIC or property ID; you can pay by cash, cheque, demand draft or card and collect an instant receipt.
- Zonal MCD offices: visit your zone’s property tax office on weekdays. Bring your earlier payment records and property details.
Property tax payment for NRIs
The portal login has been restricted for international mobile numbers. If you’re an NRI, you can still pay seamlessly by either linking an Indian mobile number to your UPIC (via a UPIC transfer request after signing up), or by registering with email-OTP login and using your email ID as the login. Once approved, you manage and pay just like any resident owner.
Rebates and exemptions
This is where owners routinely leave money on the table. MCD offers several concessions on self-occupied residential property:
- Lump-sum / advance-payment rebate: paying the full year’s tax in one shot early in the financial year earns a rebate. MCD notifies the exact percentage and cut-off each year, so check the current notification before you pay.
- Senior citizens (65+): 30% rebate.
- Women sole owners: 30% rebate where the property is solely in a woman’s name.
- Ex-servicemen: 30% rebate.
- Specially-abled owners: 30% rebate.
- Online payment bonus: residential properties with a small tax bill can get a further 2% for paying online.
Deadlines, penalties and amnesty schemes
Delhi’s financial year runs April to March. The early-payment rebate deadline usually falls in the first quarter and is often extended for FY 2025-26, for instance, the 10% rebate window was pushed to 31 July 2026. For the current year, confirm the live deadline on the portal.
Penalty for late payment: 1% interest per month on the outstanding amount from the day after the due date. It compounds quietly, so a few skipped years can turn into a serious bill.
Amnesty (SUNIYO): MCD’s Sumpattikar Niptaan Yojana let owners clear old arrears (up to FY 2020-21) with a full waiver of interest and penalty, provided they paid principal for the preceding five years plus the current year. The scheme’s deadlines have passed as of this update, so if you have legacy dues, check mcdonline.nic.in for the current status or any successor scheme before assuming a waiver applies.
How to download your receipt & the Nil Dues Certificate
After any online payment, your receipt is generated instantly as a PDF keep it for mutation, home-loan due diligence and future reference. To pull an older receipt, log in and check your transaction history under the UPIC.
For a sale or transfer, a receipt is not enough. Ask for MCD’s Nil Dues Certificate, which confirms zero outstanding tax as of a specific date. If a seller offers recent receipts but gets evasive about the Nil Dues Certificate, treat it as a red flag for hidden older arrears and get the certificate issued before the sale agreement is signed.
Common mistakes to avoid
- Using carpet area instead of covered area. The tax is on built-up area under-reporting invites a corrected demand later.
- Guessing your colony category. A wrong A–H category changes both the unit area value and the rate. Verify it on the portal.
- Missing mutation after purchase. Until the UPIC reflects your name, records and any dues stay tangled with the previous owner.
- Ignoring a wrong demand notice. If a notice looks incorrect, raise a timely objection with the Assessing Officer with your documents rather than simply not paying.
- Letting the rebate deadline slip. The early-payment discount is free money; the late penalty is not.
Planning to buy or sell in Delhi? Your property tax status feeds directly into stamp duty, registration and the price the property registers at. Read our companion guide on circle rates in Delhi to see how the two connect.
Frequently asked questions about property tax in Delhi
How do I pay property tax in Delhi online?
Go to mcdonline.nic.in, log in with your Indian mobile number and OTP (or email OTP), select your UPIC, verify the details, choose the financial year, review the amount, pay by UPI/net banking/card, and download the receipt.
What is UPIC in Delhi property tax?
UPIC is the 15-digit Unique Property Identification Code assigned to each Delhi property. It’s printed on your earlier receipt and is required to pay MCD property tax. No UPIC yet? Apply for a new one on the portal.
How is property tax calculated in Delhi?
Under the Unit Area System: Annual Value = Unit Area Value × Covered Area × Age Factor × Use Factor × Structure Factor × Occupancy Factor. Property Tax = Annual Value × your category’s tax rate.
Which authority collects property tax in Delhi?
MCD covers most of Delhi. NDMC handles Lutyens’ Delhi and central areas, and the Delhi Cantonment Board covers cantonment areas.
What is the rebate on property tax in Delhi?
An early lump-sum payment earns a rebate (percentage notified yearly), plus 30% concessions for senior citizens, women sole owners, ex-servicemen and specially-abled owners on self-occupied homes, and a small extra rebate for paying online.
What happens if I don’t pay property tax in Delhi?
MCD levies 1% interest per month on overdue amounts. Continued default can lead to demand notices and, in extreme cases, attachment or sealing. Because dues attach to the property, a buyer can inherit the previous owner’s arrears.
Can NRIs pay MCD property tax?
Yes. Since international mobile logins are blocked, NRIs can link an Indian mobile number to their UPIC or register with email-OTP login and pay online.