Property Tax in Delhi: MCD, Calculation, Payment, Rates & Complete Guide (2026)

Property tax in Delhi is a mandatory annual obligation for every property owner in the national capital — whether you own a flat in South Delhi, a house in Dwarka, a shop in Connaught Place, or a plot in Rohini. The Municipal Corporation of Delhi (MCD) — now unified after the merger of the three former corporations in 2022 — is the single authority responsible for property tax collection across Delhi. The tax is calculated using the Unit Area Value system, and the amount depends on your property’s location, built-up area, usage, age, and occupancy status. Understanding property tax in Delhi helps you stay legally compliant, claim available rebates, avoid penalties, and navigate property purchases and home loan applications without complications. This guide covers everything you need to know.

What is Property Tax in Delhi?

Property tax in Delhi is a direct annual levy imposed by the Municipal Corporation of Delhi on the owners of land and buildings within the city’s municipal limits. It is governed under the Delhi Municipal Corporation Act, 1957.

The tax applies to:

• Residential flats, apartments, and independent houses
• Commercial offices, shops, and showrooms
• Industrial units and warehouses
• Vacant plots within MCD limits in many cases

Important: Properties under the New Delhi Municipal Council (NDMC) area — covering Lutyens Delhi, Connaught Place, and surrounding zones — pay property tax to NDMC, not MCD. Properties under the Delhi Cantonment Board pay to that body. This guide primarily covers MCD, which governs the overwhelming majority of Delhi properties.

Why Property Tax Matters in Delhi

For property owners in Delhi, tax compliance is directly linked to:

• Ability to sell or transfer property — No Dues Certificate required from MCD
• Home loan processing — lenders verify tax records during legal due diligence
• Mutation and ownership transfer in MCD records
• Building plan approvals and utility connections
• Maintaining a legally clean and transferable property title

Who Has to Pay Property Tax in Delhi?

The registered owner of the property is legally responsible for property tax in Delhi. Tenants are not liable.

Key points:

• Joint owners share the tax liability.
• After buying property, the new owner must complete mutation in MCD records.
• Builders are liable for property tax on unsold units.
• Even vacant plots within MCD limits may attract property tax.
• If you are an authorised occupant of government land or DDA allottee, specific rules apply — check with MCD directly.

Buyer alert: Unpaid property tax dues in Delhi legally transfer to the new buyer. Always verify outstanding MCD dues before signing any sale agreement.

Municipal Authority Responsible for Property Tax in Delhi

Authority	Area Covered
MCD (Municipal Corporation of Delhi)	Most of Delhi — all zones except NDMC and Cantonment
NDMC (New Delhi Municipal Council)	Lutyens Delhi, CP, Khan Market, Chanakyapuri
Delhi Cantonment Board	Cantonment areas

MCD Zones (Post-2022 Unification):
After the three corporations — North, South, and East — merged in 2022, MCD now operates as a single unified body covering twelve zones: Central, City, Keshavpuram, Najafgarh, Narela, Rohini, Shahdara North, Shahdara South, South, West, Civil Lines, and New Delhi Zone.

How Property Tax is Calculated in Delhi

Delhi uses the Unit Area Value (UAV) system for property tax calculation. This system replaced the older Annual Rental Value approach and is now uniformly applied across all MCD-governed properties.

Formula:

Annual Value = Unit Area Value per sq metre × Built-up Area × Age Factor × Use Factor × Occupancy Factor × Structure Factor

Property Tax = Annual Value × Rate of Tax

Breaking Down Each Factor:

Unit Area Value (per sq metre per year):
MCD divides Delhi into eight categories (A to H) based on location. Each category carries a fixed Unit Area Value.

Category	Colonies / Areas	Unit Area Value (₹ per sq m per year)
A	Prime areas — Defence Colony, Friends Colony, Hauz Khas	₹630
B	Greater Kailash, Vasant Vihar, Safdarjung Enclave	₹500
C	Lajpat Nagar, Rajouri Garden, Pitampura	₹400
D	Rohini, Dwarka, Janakpuri	₹320
E	Mayur Vihar, Patparganj, Shahdara	₹270
F	Mongolpuri, Uttam Nagar, Sultanpuri	₹230
G	Rural village areas within MCD limits	₹200
H	Unauthorised regularised colonies, urban villages	₹100

Rates are subject to revision. Always verify current year values on the MCD portal.

Age Factor:

Age of Building	Multiplying Factor
Up to 5 years	1.0
5–10 years	0.9
10–20 years	0.8
20–30 years	0.7
30–40 years	0.6
40–50 years	0.5
Above 50 years	0.4

Use Factor:

• Residential: 1.0
• Non-residential (commercial): 2.0
• Industrial: 1.5
• Mixed use: Varies

Occupancy Factor:

• Self-occupied: 1.0
• Rented: 2.0

Structure Factor:

• Pucca RCC: 1.0
• Semi-pucca: 0.5
• Kachha: 0.5

Tax Rate:

• Residential properties: 12% of Annual Value (owner-occupied)
• Residential rented: 20% of Annual Value
• Commercial properties: 20% of Annual Value

Example Calculation (Delhi Residential Self-Occupied, Illustrative):

• Location: Category D (Dwarka)
• Unit Area Value: ₹320 per sq m per year
• Built-up area: 100 sq m (approx. 1,076 sq ft)
• Age of building: 15 years → Age Factor: 0.8
• Use Factor: 1.0 (residential)
• Occupancy Factor: 1.0 (self-occupied)
• Structure Factor: 1.0 (pucca)

Annual Value = 320 × 100 × 0.8 × 1.0 × 1.0 × 1.0 = ₹25,600

Property Tax = ₹25,600 × 12% = ₹3,072 per year

This is the base figure. Always calculate on the MCD portal for an accurate final amount.

Factors Affecting Property Tax in Delhi

Factor	Impact
Colony category (A to H)	Single most important factor — determines Unit Area Value
Built-up area	Directly proportional to tax
Age of building	Older buildings benefit from lower age factor
Usage (residential vs commercial)	Commercial attracts double the use factor
Occupancy (self vs rented)	Rented doubles the occupancy factor
Construction type	Kachha gets a 0.5 reduction in structure factor

Property Tax Rates in Delhi

Property Type	Tax Rate on Annual Value
Residential — self-occupied	12%
Residential — rented out	20%
Commercial	20%
Industrial	15%
Mixed use	As applicable per category

How to Pay Property Tax Online in Delhi

MCD Online Payment

1. Visit the official MCD portal: https://mcdonline.nic.in
2. Click on “Property Tax” → “Pay Property Tax.”
3. Enter your Property ID (UPIC — Unique Property Identification Code).
4. If first-time user, register your property using your colony name and address.
5. Verify all property details on screen carefully.
6. Review the calculated tax amount.
7. Choose payment method — net banking, debit card, credit card, or UPI.
8. Complete payment and download your challan immediately.

UPIC Number: MCD issues a Unique Property Identification Code to every registered property in Delhi. Your UPIC is printed on previous tax receipts. If you do not have it, search using your address on the MCD portal.

Additional payment channels:

• MCD’s mobile app — MCD 311
• Authorised bank branches including Punjab National Bank, HDFC Bank, and Axis Bank
• Common Service Centres across Delhi

How to Pay Property Tax Offline in Delhi

1. Visit your nearest MCD zonal office or ward office.
2. Carry your UPIC or previous property tax receipt.
3. Collect a demand challan.
4. Pay in cash, cheque, or demand draft drawn in favour of MCD.
5. Collect your stamped receipt and keep it safely.

Required Documents

• UPIC (Unique Property Identification Code)
• Previous year’s MCD property tax receipt
• Sale deed or allotment letter (for first-time payers after purchase)
• Identity proof (for exemption or mutation applications)
• Possession letter or DDA allotment letter (for DDA flat owners)

Property Tax Due Dates in Delhi

Quarter	Due Date
Full year advance payment	June 30
First half (April–September)	June 30
Second half (October–March)	December 31

Early payment rebate:
MCD offers a 15% rebate on property tax for residential properties where the full annual tax is paid in one lump sum before June 30. This is one of the most generous early payment rebates among Indian municipal corporations.

This 15% rebate is significant. For a property with an annual tax of ₹10,000, paying before June 30 saves ₹1,500 every year — a meaningful saving over a homeownership lifetime.

Rebates and Exemptions in Delhi

MCD offers several statutory rebates and exemptions:

• Senior citizens (65+ years): 30% rebate on property tax for self-occupied residential properties where the owner is 65 years or above.
• Women sole owners: 30% rebate for properties registered solely in a woman’s name that are self-occupied and residential.
• Ex-servicemen: 30% rebate for ex-defence personnel on self-occupied residential properties.
• Physically disabled persons: 30% rebate for disabled owners on self-occupied residential properties.
• DDA / CGHS flats below 100 sq m: Specific rebates apply — verify on the MCD portal.
• Properties in unauthorised regularised colonies (Category H): Lower Unit Area Value already applies.
• Charitable institutions, religious places, hospitals: Exempt subject to conditions under the DMC Act.
• Government properties: Exempt when used for public purposes.
• One-time rebate for properties not previously assessed: MCD has historically offered one-time registration incentives for unassessed properties — check the MCD portal for current schemes.

Important: These rebates can be combined in some cases but not all. Verify eligibility on the MCD portal or at your ward office.

How to claim: Apply online through the MCD portal or in writing at your ward office with supporting documents — age proof, disability certificate, service certificate, or registration document. First-time claims require supporting documentation.

Penalties for Late Payment in Delhi

• Interest: MCD charges 1% per month on overdue property tax after the due date.
• Penalty: An additional penalty of up to 2% per month may apply in cases of persistent non-payment.
• Demand notice: Formally issued by the MCD ward office after the due date.
• Property sealing and attachment: MCD has actively used property sealing and attachment powers under the DMC Act for long-standing defaulters — this is enforced more rigorously in Delhi than in many other cities.
• NOC withheld: Outstanding dues block the No Dues Certificate required for property sale, home loan disbursement, and mutation.

How to Download Property Tax Receipt in Delhi

MCD:

1. Visit mcdonline.nic.in.
2. Go to “Property Tax” → “Print Receipt / Challan.”
3. Enter your UPIC or transaction reference number.
4. Download the PDF receipt.

Keep multiple copies — physical and digital. MCD receipts are required for mutation, property sales, and home loan processing.

How to Check Property Tax Status in Delhi

• Visit mcdonline.nic.in.
• Enter your UPIC or property address.
• View current year dues, arrears from previous years, and full payment history.

MCD also allows dues checking through the MCD 311 mobile app.

Property Records and Land Verification in Delhi

Property ownership verification in Delhi involves multiple records across different authorities:

Delhi Land Records — Jamabandi and Khasra:
For properties in Delhi’s villages, lal dora areas, and extended lal dora zones, the Delhi Revenue Department maintains Jamabandi records. These records are accessible through the Delhi government’s revenue portal and confirm ownership, survey number, and land type.

For urban Delhi properties — DDA flats, builder apartments, cooperative housing society units — the primary ownership proof is the registered sale deed and the conveyance deed.

DDA Records:
For DDA-allotted properties, the DDA allotment letter, possession letter, and lease deed are the core ownership documents. DDA flats also have specific property tax implications, particularly regarding the colony category assigned under the UAV system.

Encumbrance:
An Encumbrance Certificate from the Sub-Registrar’s office confirms no financial liabilities or legal disputes on the property. This is mandatory for home loan processing in Delhi.

Understanding land records in India and Stamp Duty broadly helps Delhi buyers who are navigating a mix of DDA, builder, and revenue village properties within the same city.

Property Tax and Home Buying in Delhi

Before purchase:

• Request MCD property tax receipts for the last three to five years.
• Verify the UPIC and check dues on mcdonline.nic.in.
• Confirm which authority — MCD, NDMC, or Cantonment Board — governs the property.
• Get a No Dues Certificate from the relevant authority before finalising the sale agreement.
• For village or lal dora properties, verify the Jamabandi and Khasra records through the Delhi Revenue Department.

During loan processing:
Home loan lenders in Delhi verify MCD property tax records, encumbrance status, and registered ownership documents during legal due diligence. Outstanding dues or mismatches between MCD records and the sale deed will delay or block loan sanction.

After purchase:

• Apply for mutation in MCD records within 90 days of registration.
• Update your UPIC to reflect your name as the current owner.
• Claim any applicable rebates — senior citizen, women owner, early payment — from the next tax year.
• Pay property tax in your own name from the next due date.

Common Mistakes to Avoid in Delhi

1. Not checking MCD dues before purchase. Dues transfer to the new buyer automatically. Delhi has a significant stock of properties with multi-year arrears.
2. Not knowing whether the property falls under MCD or NDMC. The authority determines the portal, rates, and payment process.
3. Missing the June 30 early payment deadline. The 15% rebate is one of the highest in India — losing it costs real money every year.
4. Not claiming the 30% senior citizen or women owner rebate. These require a one-time formal application and deliver significant annual savings.
5. Skipping mutation after purchase. Without mutation, the previous owner’s name stays in MCD records, creating legal complications during future sales and loans.
6. Not updating UPIC after purchase. The UPIC must reflect the correct current owner for all MCD transactions.
7. Paying on unofficial portals. Always use mcdonline.nic.in or the MCD 311 app.
8. Not retaining old receipts. Keep at least seven years of MCD property tax receipts for legal and financial protection.

Frequently Asked Questions — Property Tax in Delhi

What is property tax in Delhi?
Property tax in Delhi is an annual levy by the Municipal Corporation of Delhi on property owners to fund civic services. It is calculated using the Unit Area Value system under the Delhi Municipal Corporation Act, 1957.

Who has to pay property tax in Delhi?
The registered owner pays property tax. Tenants are not liable. Joint owners share the liability.

How is property tax calculated in Delhi?
Annual Value = Unit Area Value × Built-up Area × Age Factor × Use Factor × Occupancy Factor × Structure Factor. Property Tax = Annual Value × Tax Rate (12% for self-occupied residential, 20% for rented or commercial).

How can I pay property tax online in Delhi?
Visit mcdonline.nic.in, enter your UPIC, verify your property details, and pay via UPI, net banking, or debit/credit card. Payment is also available through the MCD 311 app.

Which authority collects property tax in Delhi?
MCD covers most of Delhi. NDMC covers Lutyens Delhi and central government areas. The Delhi Cantonment Board covers cantonment areas.

What happens if property tax is unpaid in Delhi?
MCD charges 1% interest per month on overdue dues. Persistent non-payment leads to demand notices and property sealing or attachment under the DMC Act.

How can I download my property tax receipt in Delhi?
Visit mcdonline.nic.in, go to the receipt section, enter your UPIC or transaction reference, and download the PDF.

Are there rebates available in Delhi?
Yes. MCD offers a 15% rebate for full early payment before June 30. Senior citizens, women sole owners, ex-servicemen, and physically disabled owners each get a 30% rebate on self-occupied residential properties.