Chandigarh Municipal Corporation has increased the property tax by a huge amount. The administration has issued a notification approving the implementation of new tax rates on business, institutions and residential properties. Under this, the tax on residential properties has been increased 3 times from 2025-26.
For 2025-26, the property tax on business and industrial properties will now be 6% of the annual rateable value (ARV). At the same time, under the 2003 rules of the Municipal Corporation, this rate will be 3% on properties falling in Group-V and properties falling in the category of service charges. Government buildings are exempted from property tax, but they will have to pay 75% service charge.
Tax on residential properties increased 3 times
Zone 1 (Sectors 1 to 19 and 26 to 28) – Rs 7.5 per square yard will be taxed on empty plot and Rs 3.75 per square foot on the built part of the house.
Zone 2 (Sectors 20 to 38, Manimajra, Industrial Area etc.) – Rs 6.0 per square yard tax will have to be paid on empty plot and Rs 3.0 per square foot tax on the built part of the house.
Zone 3 (Sectors 39 to 63) - Rs 4.5 per square yard tax has been fixed on empty plot and Rs 2.25 per square foot tax on built house.
CHB flats and cooperative housing society - Rs 3.0 per square foot annual tax will now be levied on flats larger than 500 square feet.
New rates applicable from 2025-26
These new rates will be applicable from 2025-26. The administration has canceled the old notification of 2004, but other provisions of the 2003 rules will remain applicable as before.
