To streamline property tax collection, the Municipal Corporation of Delhi has divided the city into North Delhi Municipal Corporation (NDMC), East Delhi Municipal Corporation (EDMC) and South Delhi Municipal Corporation (SDMC). NDMC covers property in the following zones:
Factors Considered in NDMC Property Tax Details
There are six factors considered when calculating NDMC property tax.
Unit area value: This is a set value assigned to each sq. m of built-up area. For the purpose of this calculation, Delhi is divided into 8 categories.
| Category |
Unit area value per square metre |
| A |
Rs 630 |
| B |
Rs 500 |
| C |
Rs 400 |
| D |
Rs 320 |
| E |
Rs 270 |
| F |
Rs 230 |
| G |
Rs 200 |
| H |
Rs 100 |
Built up area: This is the total area that has been constructed on. It includes the thickness of walls.
Age factor: The older a building is, the lower the tax liability. A value from 0.5 to 1.0 has been assigned to properties in relation to their age.
| Year of construction |
Age factor |
| Prior to 1960 |
0.5 |
| 1960-69 |
0.6 |
| 1970-79 |
0.7 |
| 1980-89 |
0.8 |
| 1990-99 |
0.9 |
| 2000 onwards |
1.0 |
Use Factor: A value from 1 to 10 is assigned to each property depending on how it is being used. Non-residential property attracts a higher tax as compared to residential property.
| Property type |
Use factor |
| Residential property |
1 |
| Non-residential public purpose |
1 |
| Non-residential public utility |
2 |
| Entertainment, clubs and industry |
3 |
| Restaurants and up to 2 star hotels |
4 |
| 3 star and above hotels, hoardings and towers |
10 |
Structure factor: The way the building has been constructed also affects the tax calculation. A value of 0.5 or 1.0 is assigned to every building depending on the construction type.
| Structure type |
Structure factor |
| Pucca building |
1.0 |
| Semi-pucca |
1.0 |
| kuchha |
0.5 |
Occupancy factor: Property that is vacant attracts the least property tax while a building that is being rented out is assigned the highest occupancy factor.
| Occupancy type |
Occupancy factor |
| Vacant plot |
0.6 |
| Self-occupied |
1.0 |
| Rented |
2.0 |
NDMC Property Tax Rate
All properties in Delhi are not taxed at the same rate. There is a difference in residential vs commercial vs industrial property tax rate and a difference based on the locality. As mentioned above, Delhi is divided into 8 categories. The tax rates for property in these categories are:
| Category |
Tax rate for residential property |
Tax rate for commercial property |
Tax rate for industrial property |
| A |
12% |
20% |
15% |
| B |
12% |
20% |
15% |
| C |
11% |
20% |
12% |
| D |
11% |
20% |
12% |
| E |
11% |
20% |
12% |
| F |
7% |
20% |
10% |
| G |
7% |
20% |
10% |
| H |
7% |
20% |
10% |
NDMC Property Tax Calculation
NDMC property tax is calculated based on the perceived annual value of the property. It can increase or decrease with changes in the market value of the property.
The typical formula used to calculate NDMC property tax is:
Tax rate x (unit area value x built up area x building age x usage factor x structure factor x occupancy factor)
NDMC Property Tax Rebate and Penalty
Further, if the entire tax amount for the year is paid in one instalment within the first quarter of year, the taxpayer is eligible for a 15% rebate.
DDA/CHGS flats will get a 10% rebate on the annual value of the flat for up to 100 sq. m.
On the other hand, if the tax amount isn’t paid on time, a 1% late payment interest will be charged per month.
NDMC Property Tax Exemptions
The following are exempt from NDMC property tax:
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Agricultural land
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Land used for public worship, burial, cremation or charitable purposes
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Land owned by war widows or gallantry awards winners
NDMC Property Tax Online Payment
Step 4: Login with your mobile number and the OTP as received via SMS
Step 5: Click on the Search property on UPIC button
Enter your UPIC property ID or the receipt number for your last property tax payment and the year or your name and the colony name. When you click on the Search button, you will see NDMC property tax details for the linked property.
Step 7: Click on Actions and choose the first option
Step 8: A payment gateway will open so that you can complete the transaction.
NDMC Property Tax Offline Payment
You can also pay your property tax offline at any ITZ cash counter in North Delhi. Payment is accepted via credit/debit card, cash or cheque.
NDMC Property Tax 2026: The Jan Vishwas Bill Reforms
The NDMC is overhauling its property tax system following the new Jan Vishwas Bill. Starting in 2026, Lutyens' Delhi is moving away from the old Annual Rent Value (ARV) method in favor of a much simpler self-assessment model. This shift is designed to cut down on legal disputes and make it easier for residents to handle their own taxes. By switching to a formula-driven system, the council is aiming for more transparency and less guesswork for homeowners.
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Key Change: Property tax is now split into two parts: building tax and vacant land tax.
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New Requirement: Every property now needs a mandatory Property Identification Code for all tax and civic services.
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Evaluation: A Municipal Valuation Committee will now reset base values every three years to keep things current.
New Property Tax Framework for Commercial Assets
The most significant changes in the 2026 guidelines target commercial and high-value properties within the NDMC jurisdiction. The new system aims to eliminate the subjective discretion of tax inspectors by introducing a standardized Unit Area Value (UAV) mechanism.
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Self-Assessment Dominance: Commercial property owners can now compute their own tax liability based on the Base Unit Area Value of their specific colony or zone.
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Occupancy Factor: The tax rate for commercial spaces is now strictly tied to the nature of use whether it is a boutique office, a retail outlet, or a co-working space.
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Penalty Decriminalization: In line with the Jan Vishwas Bill, minor clerical errors in tax filing no longer lead to criminal prosecution. Instead, a tiered financial penalty system has been established.
Impact on Lutyens' Business Districts
For commercial hubs like Connaught Place, Khan Market, and Bengali Market, the 2026 reforms bring much-needed clarity. The Annual Value is now calculated by multiplying the unit area value by the property's age and occupancy factors. This shift is expected to stabilize tax revenues for the council while providing a predictable financial roadmap for commercial landlords and business owners in Central Delhi.
Conclusion to NDMC Property Tax
NDMC property tax is a direct tax that every property owner in North Delhi must pay. This helps fund the municipal corporation and it is only when taxes are paid that infrastructure can be improved upon. With the ease and convenience of online payments, there really is no excuse to not pay this tax.
| Property Tax Payment in Other Places |
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