Property tax in Tamil Nadu is a key responsibility for all property owners, but many are unsure about how it is calculated, when it is due, or how to pay it efficiently. With changes in rates, online payment options, and various exemptions available, staying informed is important, especially if you’re managing long-term financial commitments such as a home loan.

This guide provides a clear overview of Tamil Nadu property tax, including calculation methods, online and offline payment processes, due dates, and tips for retrieving assessment details and receipts.

What Is Property Tax in Tamil Nadu and Why Is It Important

Property tax in Tamil Nadu is a mandatory tax levied on all lands and buildings, regardless of their purpose or location. It is collected by the municipal authorities of each area, including corporations, municipalities, and town panchayats.
Paying property tax directly contributes to the development and maintenance of local infrastructure. Roads, street lighting, water supply, and waste management services are all funded through property taxes, making timely payment essential for the smooth functioning of your community.

How Property Tax in Tamil Nadu Is Calculated 

Property tax is based on the Annual Rental Value (ARV), which includes both built-up and open areas.

• Uncovered area ARV: 12 × (½ × Basic Rateable Value × area)
  
• Covered area ARV: Rateable Value × 12

The total ARV is the sum of both, and the tax is applied as a percentage.
Example: A 1,000 sq. ft. built-up area and 200 sq. ft. open area with a BRV of INR 50 and a 20% tax rate results in an annual property tax of INR 1,32,000.
Managing these costs effectively is important, especially if you’re planning to invest in a new home or renovate your property. Using tools like a home loan EMI calculator can help you estimate monthly repayments and balance them alongside your Tamil Nadu property tax obligations.

Property Tax Payment Online in Tamil Nadu: Step-by-Step

If you prefer to pay property tax online in Tamil Nadu:

• Visit your local municipal corporation’s official website.
  
• Enter property details or assessment number to fetch the tax amount.
  
• Select a payment method (debit/credit card, net banking, etc.).
  
• Complete the payment and download or save the receipt.

Offline Property Tax Payment Options in Tamil Nadu

If you prefer to pay the Tamil Nadu property tax offline:

• Go to your municipal corporation or panchayat office.
  
• Payments can be made via cash, cheque, or demand draft.
  
• Ensure you receive a receipt after making the payment.

Due Dates, Penalties, Rebates, and Exemptions in Tamil Nadu Property Tax 

Property tax in Tamil Nadu is due on 30th September and 31st March. Late payment attracts a 1% monthly penalty, and continued delay may lead to legal action.
You can claim rebates like:

• Early payment: 5% discount if paid within the first 30 days of the half-year (capped at INR 5,000 per assessment).
  
• Age-based depreciation: 5 to 40% depending on property age.
  
• Owner-occupied: Up to 25% concession on the ARV for self-occupied homes.
  
• Vacant property: Up to 50% reduction if unoccupied for 30+ consecutive days.

Exemptions apply to government buildings, schools, places of worship, disabled-owned properties, and certain ex-servicemen.

How to Retrieve Assessment Number, Property ID, and Receipts

• Assessment Number: Available on your previous tax receipts or can be obtained from your local municipal office.
  
• Property ID: Can be found on property documents or by contacting your local authority.
  
• Receipts: After online payment, receipts are available for download on the payment portal. For offline payments, receipts are provided at the time of payment.

Understanding House Tax Tamil Nadu vs Property Tax Tamil Nadu Terminology

In Tamil Nadu, 'house tax' and 'property tax' are often used interchangeably. However, 'house tax' typically refers to taxes levied on residential properties, while 'property tax' encompasses taxes on all types of properties, including residential, commercial, and industrial.

Latest Tamil Nadu Property Tax Rates, Fees, and Notifications 

Tamil Nadu property tax rates in 2025–2026 vary depending on the locality or property type:

• Town Panchayats: 15 to 30% of ARV
  
• Municipalities: 15 to 35% of ARV
  
• Corporations: 20 to 40% of ARV
  
• Commercial properties: Up to 150% of ARV

Municipalities periodically release notifications for tax rate updates, rebate schemes, and deadlines, so staying updated via your local municipal website is essential.

Conclusion

Managing your property tax in Tamil Nadu is essential for maintaining civic amenities and avoiding penalties. By understanding how it is calculated, tracking due dates, and using online payment options, you can ensure timely compliance and peace of mind.

If you’re planning to buy a new home in Tamil Nadu, SMFG Grihashakti can help with flexible housing finance solutions with competitive home loan interest rates. Start by using our home loan eligibility calculator to quickly find out how much financing you may qualify for, and apply online in a few simple steps.