UT Administration Triples Property Tax on Residential Properties for 2025-26

In a major revision of property tax rates, the Union Territory (UT) Administration has announced a significant increase in tax rates for the assessment year 2025-26. As per the latest notification, the property tax on residential properties will be tripled, reaching 9% of the Annual Rental Value (ARV).

Meanwhile, the tax on commercial and industrial properties has also been revised and will now be levied at 6% of the ARV.

This sharp increase in property tax is expected to have a significant financial impact on homeowners, especially those with high-value properties. The administration has justified the move as a necessary step to boost revenue for infrastructure development and civic amenities.

Property owners are advised to review their financial plans in light of these changes and ensure timely compliance with the revised tax structure. Further details and guidelines regarding implementation are as follows: