NDMC Property Tax to Drop by 50 Percent as Unit Area Method Replaces Rateable Value

The New Delhi Municipal Council (NDMC) has announced a major shift in its property tax collection system by introducing the Unit Area Method (UAM). This new system will replace the old Rateable Value based evaluation starting from March 2026. This move is part of the Jan Vishwas Bill 2026 and aims to bring Delhi closer to a ‘One City, One Tax’ structure. The decision is expected to bring massive relief to property owners and traders in the NDMC area.

🚨: Delhi Weather Today: Light Rain and Cloudy Skies Likely with Maximum Temperature at 33°C।

How the new property tax system will reduce your bills

The implementation of the Unit Area Method is expected to reduce property tax by 30% to 50% for many residents. This benefit is specifically targeted at owners of old properties and those who occupy their own buildings. The council has decided to lower the maximum tax rate from 30% to 20%, which gives a direct 10% relief to taxpayers. The new system is designed to be more transparent and will use a self-assessment model for online payments.

• Property tax will now consist of two parts: Building Tax and Vacant Land Tax
• A Municipal Valuation Committee will be formed every three years to review tax rates
• Every property will receive a mandatory Property Identification Code
• Service charges for Central Government properties will be capped at 75% of the applicable property tax

Key changes and official statements from NDMC

NDMC Vice Chairman Kuljeet Singh Chahal explained that UAM aims to modernize the evaluation process and eliminate the inspector raj. He shared that the council expects tax collection to rise to 1,350 crore rupees this year due to better compliance and ease of payment. While the New Delhi Traders Association has welcomed the move towards a uniform tax system, they have requested further consultations regarding enforcement powers. The table below summarizes the core changes in the tax structure.