Property Tax for Bangalore Home Buyers: GBA Billing, the UAV Formula and Dues Checks
When a flat purchase is planned, most of the attention goes to the price, the loan and the stamp duty. A smaller item deserves a place on the list too: the annual property tax owed to the city on any Bangalore home or site. Below are the collecting body, the sums, the discount for timely payment and the search a buyer should run on the tax record.
Corporation Instead of BBMP
The city's government changed hands with the 2024 governance legislation, and the Greater Bengaluru Authority (GBA) now governs the former BBMP area. Five corporations were formed on 2 September 2025, for Bengaluru Central, North, South, East and West. Each home falls under the corporation of its ward, which sends the tax demand and handles the khata.
People still say "BBMP tax", and the portal retains the older name. The collector is different now, while the assessment method continues unchanged. A buyer should note down which corporation covers the flat.
The Calculation, Step by Step
Owners assess themselves in Bangalore: they file the particulars and pay the tax that results. The rates follow the Unit Area Value (UAV) method, which puts each locality in a zone from A to F according to guidance values, with A charged most and F least for every sq ft.
Begin with the floor area being taxed and apply the monthly UAV rate of the zone for that kind of use. Ten months of that figure is treated as the gross annual value. Once an allowance for the age of the building comes off, the taxable annual value is left.
Homes used as residences are taxed at one-fifth of that value. A further 24% of the tax itself is added as a cess.
Why a tenant changes the bill
Renting a home out moves it to a higher UAV rate than the one for an owner living in it, under one roof. If the flat is shown as self-occupied while tenants live there, the tax is understated and the corporation may claim the gap afterwards. Those who buy for rental income should assume the higher letting rate in their budget from day one.
Illustration with assumed numbers
The example is a new, self-occupied flat of 1,200 sq ft rated at an assumed Rs. 3 a month for each sq ft, with nothing deducted for age. It explains the method and nothing more, because the rate depends on where the flat is and how it is used.
| Item | Basis | Value |
|---|---|---|
| Annual value before tax | Area, rate and 10 months | Rs. 36,000 |
| Property tax | One-fifth of the annual value | Rs. 7,200 |
| Cess | Just under a quarter of the tax | Rs. 1,728 |
| Full year's bill | Tax and cess added | Rs. 8,928 |
| Bill with rebate | Rs. 446 taken off | Rs. 8,482 |
The Rebate and Its Deadline
Paying a full year's tax in one instalment before the rebate deadline earns 5% off. For 2026-27, Karnataka moved the deadline to the end of May (31 May 2026), and all five corporations follow it. Owners who pay in two parts miss the rebate.
After the due date, penalty and interest apply and keep accumulating until the dues are paid. The 2027-28 deadline will be notified by the GBA, usually after an April start. If the deadline has passed by the time of purchase, cost the first year at the full amount.
What Happens to Dues When Ownership Changes
Tax follows the property, not the seller, so arrears move to the next owner. Since October 2024 a sale inside GBA limits cannot be registered without a valid e-khata. That document draws on the property ID and tax record, so pending dues can stall the e-khata along with everything resting on it, from registration to the loan to a later resale.
Finding the facts
Type a property ID (PID) or an SAS application number into the official portal and the tax record appears. Earlier receipts and the khata carry both numbers. Points to examine in that record:
- Payments made in each year and any balance still owed
- The area on file, compared with the flat as built
- The category of use on file (living in it, letting it, or business) compared with the reality
- The owner's details, compared with the sale deed and the khata
- The ward and corporation responsible
Allocating old dues
Whatever fell due during the seller's ownership is for the seller to bear, and the agreement to sell ought to record that. Buyers commonly release the last payment only once nothing is owed and the e-khata is ready. If tax is still pending on sale day, the precise sum can be kept from the price and sent to the corporation.
New Launches and Resale Flats Differ
Inside a new project, assessments for each flat begin when construction ends and the khata is split between units. Ask the developer when khatas are due and who pays tax until then. A bill addressed to the buyer comes only after the khata changes.
A resale flat arrives with years of tax history, and all of it should be read before an advance is paid. Once the sale deed is registered, the new owner asks for the khata and tax account to be changed. Receipts for every year, stored safely, will help at the next sale or loan.
Khata Type and Tax
Whether a home has an A-khata or a B-khata, it is liable for property tax. B-khata indicates incomplete compliance with planning rules, which can make loans or resale harder. Settling the tax on such a home keeps its account tidy without changing its status.
Pre-Booking Steps
A short routine before any large payment avoids costly surprises. Ask the seller for the PID or SAS number along with the latest paid receipt. Then read every year on the portal, because the latest year alone can hide arrears.
Compare the zone, area and recorded use with the flat itself, and find out the khata type and whether an e-khata exists. The agreement should make the seller responsible for clearing dues. After registration, the khata and the tax account are changed to the buyer's name.
The tax is small next to the cost of a home, and so it is sometimes left out of the budget. Count it with maintenance charges and loan payments, using the home loan EMI calculator for the loan side.
