So to answer your query: Does property tax increase if home value increases? Let me tell you that yes, property tax in India can increase if the home value rises. Property tax is levied by municipal corporations and is calculated based on factors like property value, location, usage, and built-up area.
Municipalities use different methods to assess property tax:
Annual Rental Value (ARV) Method: Tax is based on the potential rental income of the property, determined by local authorities. If rental values increase, property tax rises.
Capital Value System (CVS): Tax is a percentage of the property’s market value, as decided by the municipal authority. If home prices appreciate, property tax also increases.
Unit Area Value (UAV) Method: Tax is based on the per-unit area value assigned by municipal corporations. If land rates increase, tax liability rises.
If a property is revalued or reassessed by municipal authorities, an increase in its market value can lead to higher property tax. If the government revises tax rates or changes the valuation method, homeowners may see a rise in tax obligations.
Factors That Trigger Higher Property Tax
Municipal revaluation of properties
Increase in circle rates (government-determined property prices)
Infrastructure improvements, such as new roads or metro connectivity
This is all about does property tax increase if home value increases.
Make Your Property Tax Payments Hassle Free with NoBroker
Read more:
Your Feedback Matters! How was this Answer?
Shifting, House?
✔
Lowest Price Quote✔
Safe Relocation✔
Professional Labour✔
Timely Pickup & Delivery
Intercity Shifting-Upto 25% Off
Check Prices
Intracity Shifting-Upto 25% Off
Check Prices
City Tempo-Upto 50% Off
Book Now
Does Property Tax Increase If Home Value Increases?
anubhav
152 Views
1
9 months
2025-03-27T16:31:09+00:00 2025-03-27T16:31:09+00:00Comment
Share