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MCD property tax in Delhi is a compulsory tax collected by the Municipal Corporation of Delhi on all residential, commercial, industrial, and vacant land properties. Every property owner in Delhi, whether an individual, institution, or government body, is required to pay property tax annually. The collected amount is used for civic services such as road maintenance, sanitation, garbage collection, street lighting, and public infrastructure development.

After the merger of North Delhi Municipal Corporation, South Delhi Municipal Corporation, and East Delhi Municipal Corporation in 2022, property tax administration is now handled by a single unified body known as the Municipal Corporation of Delhi (MCD).

What Is MCD Property Tax and Service Charge

MCD property tax applies to both private and government-owned properties. According to Supreme Court directions, government properties constructed after 26 January 1950 must pay a service charge to MCD. This service charge is calculated as a percentage of the rateable value of the land or building and is revised every year by the civic authority.

Both property tax and service charges are mandatory, and failure to pay may result in penalties or recovery proceedings under the Delhi Municipal Corporation Act, 1957.

How MCD Property Tax Is Calculated in Delhi

The Municipal Corporation of Delhi mainly uses the Unit Area System to calculate property tax. This system ensures uniform tax calculation based on property size, location, age, usage, and occupancy status.

MCD Property Tax Formula

Property Tax = Annual Value × Applicable Tax Rate

Annual Value Calculation

Annual Value =
Unit Area Value × Covered Area × Age Factor × Occupancy Factor × Structure Factor

Meaning of Key Factors in Property Tax Calculation

Newer properties usually attract higher tax because of their higher market value, while self-occupied residential properties enjoy lower tax rates.

Property Tax Categories in Delhi

Delhi is divided into eight property tax categories from A to H. These categories are determined based on infrastructure quality, location, and civic amenities available in the area.

Residential Property Tax Rates in Delhi (2025–26)

These rates are applied to the annual value of the property.

Property Tax Rates Based on Covered Area

MCD Property Tax for Industrial and Farmhouse Properties

MCD Property Tax Rebates and Exemptions

MCD offers several rebates to reduce the financial burden on property owners.

Major Property Tax Rebates in Delhi

• Fifteen percent rebate for lump sum payment in the first quarter

• Ten percent rebate for DDA and CGHS flats up to 100 square metres

• Thirty percent rebate for senior citizens and persons with disabilities (one property only)

• Thirty percent rebate for ex-servicemen

• Twenty percent rebate for group housing societies if paid before June 30

Property Tax Exemptions

• Residential properties up to 100 square yards are fully exempt

• Properties between 100 and 500 square yards get 50 percent rebate

• Properties used for religious, charitable, burial, or heritage purposes

• Agricultural land and buildings used for farming

• Self-occupied properties owned by war widows or families of martyrs

Suniyo Yojana 2025–26 Property Tax Amnesty Scheme

The Suniyo Yojana, also known as Sampatti Kar Niptan Yojana, allows Delhi property owners to clear old property tax dues without paying interest or penalties.

Key Features of Suniyo Yojana

• Pay current year property tax plus previous five years

• One hundred percent waiver on interest and penalties

• Applicable to residential, commercial, and unauthorised properties

• Valid till 30 September 2025

• Property owners receive a No Objection Certificate after payment

This scheme has significantly increased tax compliance and revenue collection across Delhi.

User Charge on MCD Property Tax Made Optional

Earlier, MCD included a garbage collection user charge of around Rs 600 for residential properties in the property tax bill. From April 1, 2025, this user charge has been made optional. Property owners can now choose whether or not to pay it.

How to Pay MCD Property Tax Online

Paying MCD property tax online is the most convenient option.

Steps to Pay MCD Property Tax Online

1. Visit the official MCD website at mcdonline.nic.in

2. Go to Online Services and select Property Tax

3. Log in or register as a citizen

4. Search your property using the UPIC number

5. Verify ownership and property details

6. Make payment using debit card, credit card, or net banking

7. Download the property tax receipt for future reference

Paying MCD Property Tax Without UPIC

First-time users can pay property tax without a UPIC number.

1. Visit the MCD property tax portal

2. Click on the option for property ID not allotted

3. Enter ownership and property details

4. Receive UPIC on registered mobile number

5. Complete the online payment

Offline MCD Property Tax Payment Options

Property owners can also pay tax offline through:

• ITZ cash counters across Delhi

• MCD zonal offices

• Payment via cash, demand draft, debit card, or credit card

MCD Property Tax Mobile App

The Municipal Corporation of Delhi has launched the MCD App, also known as the Unified Mobile App, to make property tax payment easier.

Services Available on MCD App

• Online property tax payment

• Download payment receipts

• View transaction history

• Register complaints

• Property geo-tagging

Mandatory Geo-Tagging of Properties

MCD has made geo-tagging compulsory for properties.

Steps for Property Geo-Tagging

1. Download the Unified Mobile App

2. Log in using registered mobile number

3. Select the UPIC

4. Click on geo-tagging

5. Confirm property location on map

Integration of Trade Licence With Property Tax

MCD has merged the General Trade and Storage Licence with property tax payment to simplify business compliance.

Key Benefits of Trade Licence Integration

Conclusion - MCD Property Tax in Delhi

MCD property tax in Delhi is a vital civic responsibility that supports the city’s infrastructure and public services. With online payment facilities, mobile applications, simplified calculation methods, rebate schemes, and amnesty programs like Suniyo Yojana, paying property tax has become easier and more transparent for residents.

Paying property tax on time helps avoid penalties, ensures legal compliance, and contributes to the overall development of Delhi.