In a bid to enhance transparency and ease compliance, the Haryana Government has cleared a new property tax methodology for buildings and lands within municipal limits across the state. The council of ministers has given its “in-principle nod” to the regime, which will be separately notified under the Haryana Municipal Corporation Act, 1994, and the Haryana Municipal Act, 1973.
Under the revised system, property tax will be calculated using a formula-driven method based on plot or carpet area, applicable Collector rate, and a floor factor. Cities have been classified into four categories — A1 and A2 for municipal corporations, and B and C for municipal councils and committees — with prescribed floor and ceiling tax rates.
A usage-based multiplier will link tax liability to property type — residential, commercial, industrial, institutional, or special category — ensuring equitable distribution of the burden. To protect owners from sudden hikes, increases will be phased in gradually until the fully revised value is reached.
Smooth Transition for Taxpayers
Property owners may continue paying under the 2013 notification for one month after the new system is introduced. Those who have already cleared dues will not be affected until FY 2026-27, while arrears and interest up to FY 2025-26 remain unchanged.
Key Exemptions
The new policy grants 100% exemption to religious institutions, municipal properties not on lease, orphanages, cremation grounds, dharamshalas, government schools and hospitals, agricultural-use properties, gaushalas (with limited exceptions), and self-occupied homes of ex-servicemen, freedom fighters, and war widows. Charitable institutions and Lal Dora residential properties also enjoy significant relief.
Rebates to Encourage Compliance
- 75% rebate for Lal Dora residential properties in existing villages.
- Up to 25% combined rebate for timely payments, women property owners, specially-abled persons, and housing societies with zero-waste systems.
Officials say the new regime will bring predictability for taxpayers while giving municipalities flexibility to adjust rates to local needs.