Property Tax To Double Under CURE Bill

Property tax is likely to be doubled in all three municipal corporations within the Outer Ring Road under the proposed Core Urban Region (Integrated Governance) Bill, 2026 (CURE Bill), because of a change in the method of property tax assessment.

According to a draft of the Bill, which was released for public consultation, property tax will be assessed based on capital value, which is determined by the government’s market value used for registration, as against the current annual rental value as at present.

As the current rental value was fixed in the year 2000, the property tax remained frozen for over two decades. When the property tax is assessed based on the capital



value, the tax burden on property owners will significantly increase. 

The draft Bill, however, offers relief for property owners as the tax hike will be implemented gradually for existing structures.

For new structures, the property tax will be determined using the new capital value method, and the hike will be immediate.

The capital value module for property tax assessment is already under implementation in certain civic bodies that were merged with the erstwhile GHMC. Currently, the property tax for a residential property is determined by this formula: Gross annual rental value (GARV) x Slab Rate minus - 10% depreciation + 8% library cess.