Who is Liable to Pay Property Tax?

Hello friend. I came across your query on this platform. I went through a similar situation where I was looking for the answer to whether property tax is paid by tenant or owner when my landlord asked me to pay the tax. I sought help from my lawyer friend, and she gave me a clear-cut answer. Here is everything that I found out related to this topic.

Is Property Tax to be Paid by Owner or Tenant?

The straightforward answer to this query is that only the owner is entitled to pay the property tax as per Section 66 of the NDMC Act. It is not the tenant’s responsibility to pay the property tax. It is a flexible rule abroad, where tenants can pay the property tax. However, here in India, the case is completely different as the owner is the only person who is responsible for making the timely payment. 

If the owner i.e. the landlord forces a tenant to pay the property tax, they can take legal action against them. 

I hope this clarifies your question regarding who should pay property tax tenant or owner. Have a good day.

Property tax is a tax levied on property owners by the municipal authorities of the area. The calculation of property tax is done on the basis of the locality, market prices, circle rate, age of the property, etc. Now the question arises, who is liable to pay property tax? I am sharing my views on the same in this answer, find out.

In the property taxation system, the following people, industries or businesses are liable to pay property tax:

1. Those who occupy property

2. Those who occupy land

If you live in a rented accommodation, the property owner pays the property tax unless an arrangement has been made where the tenant pays the property tax on behalf of the landowner. 

It is important to pay property taxes to the municipal authorities of your area in order to have access to:

• Timely maintenance of the area and locality

• To get road and safety services

• To have access to general government services

• For proper sewage system

• For upkeep of civic amenities

I hope now you know what is property tax, who is liable to pay property taxes and why should you pay property taxes.