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Meaning of Property Tax :

Property tax is the sum paid to the municipal corporation or the concerned authorities by the owner of the property. It is also called house tax and is paid annually. This tax is usually paid to the municipal corporation or the local state government and varies with respect to the location of properties.

Property tax can is charged on all the tangible real estate properties owned by an individual. It is also charged on homes, rented-out properties, office buildings, etc. The properties are classified into four categories by the government for the easier calculation of property tax.

Personal Property

Land

Improvements made to the land

Intangible Property

The location and the state policies play an important role in deciding this tax and it varies from place to place.

Calculation of Property Tax :

We are aware that the property tax varies from place to place but there is a mathematical formula to calculate property tax and it is given below :

Property Tax = Base value × Building type × Age × Flood factor × Built-up Area × Category based on the use The methods used by corporations to calculate property tax may vary but the general outcome is usually the same.

There are certain factors that affect the value of the property tax and these factors are :

Location

Floor Space Index

Property type

Status of the occupancy (rented or self-occupied).

Amenities

Type of construction

All these factors vary from one place to another and this is why the property tax varies from one place to another.

How to pay property tax?

The property tax can be paid by offline and online methods. The offline simple requires you to visit the office of the concerned authority such as a municipal corporation and pay at the window provided. The online method is easier and saves a lot of time. If you want to pay property tax online then follow the given steps

1. Log in to the official website of the concerned municipal corporation.

2. Select ‘property tax’ and then proceed to the payment option.

3. Choose the category under which the property falls.

4. Choose the assessment year for which tax is to be paid.

5. Enter the identification number and all the other details needed.

6. Select the payment method and pay.

After the payment, You can print the receipt for the payment of the property tax.

If you do not pay property tax in time then it will lead to a fine for the late payment of the tax. This interest can vary from 5% to 20% depending upon the state policies. The property tax should be paid in time to avoid such fines and we should pay all our taxes in time because these taxes are major sources of revenue for the government and these funds are ultimately used for the welfare of the citizens. So, Pay all your taxes on time and keep yourself aware of the taxes and the tax benefits you can avail yourself.