Tiruchi Corporation Increases Property Tax by 6%: Impact on Residential, Commercial Properties

The Tiruchi Corporation has implemented a 6% increase in property tax, effective from October 1, two and a half years after the previous revision. This hike applies to both residential and commercial properties, which were last adjusted in 2022-23. The new rates were introduced following a resolution passed in April 2022.

Residential properties ranging from 601 to 1,200 sq. ft. saw a 50% increase, while those between 1,201 and 1,800 sq. ft. experienced a 75% rise. Buildings larger than 1,801 sq. ft. had a 100% tax increase, while properties under 600 sq. ft. saw a 25% hike. Commercial property taxes and vacant plots were raised by 100%.

For example, if a property owner was previously paying ₹10,000 annually, the revised tax will now be ₹10,600. Early payments made by April will benefit from a 5% incentive. However, if the tax is paid late, a penalty of 1% per month will be levied, with a maximum penalty of 12% after 12 months.

The revised tax system is based on the Government Order (GO) issued in 2022, which mandates a 6% tax increase annually. Though the increase was scheduled for April 2023, it was implemented from October 1, 2024. The hike will apply only for six months in the 2024-25 fiscal year.

Notices have already been issued to around 2.40 lakh properties across the five zones of the city. The Corporation currently generates about ₹148 crore annually from property taxes, but with the 6% increase and penalties, this is expected to rise to approximately ₹160 crore.