Property Tax in Punjab | Updated Rates, Rules, Payment & More
Paying property tax in Punjab is a mandatory responsibility for all property owners across urban and semi-urban areas. The tax collected is used by the Punjab government to maintain infrastructure, public facilities, and provide essential civic services. This includes development of roads, lighting, garbage collection, sanitation, and more. With the rise of digitisation in public services, the process of paying Punjab property tax has become much easier and more convenient.
In this detailed guide, we explain the property tax rates in Punjab, online and offline payment methods, latest updates, rebate schemes, and city-wise classifications. If you are a property owner in Punjab, this article will help you stay compliant and avoid penalties.
Categories for Property Tax in Punjab
Punjab municipalities are classified into three categories, which directly impact the tax calculation. The property tax rates differ based on the category of the city.
| Category | Cities Included |
|---|---|
| Category A | Ludhiana, Amritsar, Jalandhar, Patiala, SAS Nagar |
| Category B | Bathinda, Phagwara, Moga, Pathankot, Hoshiarpur, Gurdaspur, Batala, Kapurthala, Khanna, Jagraon, Nangal, Rajpura, Nabha, Mandi Gobindgarh, Sangrur, Malerkotla, Sunam, Barnala, Kharar, Zirakpur, Mansa, Dera Bassi, Muktsar, Malout, Ferozepur, Abohar, Fazilka, Faridkot, Kotkapura |
| Category C | Remaining smaller cities and towns in Punjab |
This classification is crucial as property tax rates in Punjab are calculated differently for each category.
Residential Property Tax Rates in Punjab
Residential property tax in Punjab is calculated based on the size of the property and whether it is self-occupied or rented. Here is a breakdown:
| Property Type / Size | Tax Rate |
|---|---|
| Self-occupied house ≤ 50 sq yards | ₹50 per year |
| Self-occupied house 51–100 sq yards | ₹150 per year |
| Self-occupied house 101–500 sq yards | 0.5% of property value |
| Self-occupied house > 500 sq yards | 1% of property value |
| Rented residential property | 7.5% of annual rental value |
| Residential properties > 125 sq yards or flats ≥ 50 sq yards | Tax applicable |
Commercial Property Tax Rates in Punjab
Property tax for commercial properties is based on the total area and city category.
Properties up to 100 sq yards:
| City Category | Rate (per sq yard) |
|---|---|
| Category A | ₹1.75 |
| Category B | ₹1.5 - ₹3 |
| Category C | ₹1 - ₹2 |
Properties from 101 to 1000 sq yards:
| City Category | Rate (per sq yard) |
|---|---|
| Category A | ₹2 - ₹5 |
| Category B | ₹2 - ₹4 |
| Category C | ₹1 - ₹2 |
Properties above 1000 sq yards:
| City Category | Rate (per sq yard) |
|---|---|
| Category A | ₹3 - ₹6 |
| Category B | ₹2.5 - ₹5 |
| Category C | ₹1.5 - ₹3 |
Tax Rates for Industrial, Educational, and Institutional Properties
These rates apply to manufacturing units, warehouses, educational institutions, and similar facilities.
| Area | Category A | Category B | Category C |
|---|---|---|---|
| Up to 4000 sq yards | ₹5/sq yard | ₹4/sq yard | ₹3/sq yard |
| Above 4000 sq yards | ₹7.5/sq yard | ₹6/sq yard | ₹4/sq yard |
Updated Property Tax Floor Rates in Punjab
In 2024, the Local Government Department of Punjab increased property tax floor rates by 5%. The last revision happened in 2021. This update was made to align property tax with circle rates in Punjab, enabling urban local bodies to improve infrastructure and qualify for funding under central schemes.
Reason for Increase:
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Alignment with updated circle rates
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Allow ULBs to raise funds through loans
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Compliance with central government funding programs
How to Calculate Property Tax in Punjab
The property tax is calculated using the following formula:
Property Tax = (Ready Reckoner Rate + Construction Cost ₹500/sq ft – 10preciation)
Annual Value = 5% of Total Value
Tax = 0.5% of Annual Value for self-occupied residential
Rented residential = 7.5%, Commercial/Industrial = 10% of annual value
Amnesty Scheme for Property Tax Dues
To encourage taxpayers to clear dues, the Punjab Municipal Corporation introduced a Property Tax Amnesty Scheme:
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Full waiver on penalty and interest if dues paid by December 31, 2023
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50% waiver on penalty and interest if paid by March 31, 2024
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No waiver after March 2024
This scheme is applicable to unpaid and partially paid property tax.
How to Pay Property Tax Online in Punjab
You can now pay your property tax using either of the two digital methods:
1. Via mSeva Punjab Portal
Steps to follow:
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Create an account or log in.
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Go to “Property Tax” section.
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Enter your name, property ID, house number, and locality.
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Check the tax due.
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Proceed to pay using card, UPI, or net banking.
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Download the payment receipt for your records.
2. Via City Municipal Corporation Websites
Steps to follow:
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Search online for your city’s municipal website (e.g., Municipal Corporation Ludhiana).
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Sign in or register.
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Enter your property details like ID or address.
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Check the payable amount.
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Complete the payment online.
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Save the receipt.
Offline Method to Pay Property Tax in Punjab
For those who prefer offline payment, follow these steps:
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Visit your nearest Municipal Corporation office.
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Fill out the property tax form.
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Pay using cash, card, demand draft, or UPI.
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Submit the form after verification.
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Collect the payment challan as proof.
Property Tax Exemptions and Rebates in Punjab
The Punjab government offers various rebates and exemptions on property tax:
| Exempted Property Types |
|---|
| Religious institutions |
| Heritage sites |
| Cow shelters and animal care centres |
| Government schools, universities, hospitals |
| Municipal and public use buildings |
| Agricultural and horticulture land |
| Properties in newly added Nagar Panchayats |
| Orphanages and community clinics |
| Widows and disabled persons (rebate up to ₹5000) |
| Properties up to 125 sq yards or 500 sq feet |
Filing Property Tax Complaints or Grievances
If you have a problem regarding your property tax, you can raise a complaint online:
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Go to the “Public Grievance” section.
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Select your preferred language.
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Enter your mobile number, name, and city.
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Describe the issue and submit.
Official Contact Details:
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Office Address: Municipal Bhawan, Sector 35-A, Chandigarh – 160022
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Helpline Number: 1800 1800 0172
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WhatsApp for complaints: 87509-75975
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Email: pgrs.lg@punjab.gov.in
Conclusion - Property Tax in Punjab
Paying property tax in Punjab is an essential obligation that supports the state’s civic services. With both online and offline payment options available, it has become easier than ever to stay updated and compliant. Always check your city category, apply rebates if eligible, and pay your dues on time to avoid penalties. Use the mSeva portal or your local municipal website for a smooth, hassle-free experience.
