Marlin Priya

Expert

Published on: Sep 17, 2026

Himachal Pradesh Property Tax

Property tax is a levy imposed by the Government on a person’s real or personal property. The property is taxed based on the value assessed by the governing authority of the jurisdiction where the property is located. The types of properties taxed and the rates of property tax vary by jurisdiction. The money collected is used for various public services, including library construction, road repairs, and sanitation. Timely payment of property tax enables tax benefits and helps avoid legal issues. In this article, we explore the various aspects of Himachal Pradesh property tax and the procedure to pay it in detail.

The Himachal Pradesh Municipal Corporation (HPMC) Act, 1994

The Himachal Pradesh Municipal Corporation (HPMC) Act, 1994 comprises provisions for the assessment and collection of property tax on lands and buildings in Chapter VIII. The Act outlines properties liable for property tax and the applicable tax rates.

Properties Liable for Himachal Pradesh Property Tax

Property tax applies to all types of residential buildings, commercial buildings, and appurtenant land. The categories of buildings subject to property tax include:

Residential / Let out residential
Non-residential / Commercial
Factory building
Office building
Hotels / Bars
Godowns
Plot of Land

Responsible Persons

The responsibility for paying property tax lies with:

Owner or joint owners
The lessor, if the land or building is let for lease
The superior lessor, if the land or building is sub-let
If the property is not let out, the person who has the right to let it is responsible for the tax

Properties Exempted from Tax

Exemptions from property tax include:

Agricultural land and buildings, other than a residential house
Vacant land and buildings occupied exclusively for public worship, charity, or public burial with corporation approval
Vacant land or buildings owned by the corporation but not leased or rented
One personal residential property owned by employees or officers martyred in duty-related encounters in police, CISF, and paramilitary forces
One personal residential property owned by employees or officers of the Municipal Corporation of Delhi who are completely handicapped during duty hours
One residential property owned by award-winning residents of Delhi in international sports events
War widows, gallantry award winners in police, defense, and paramilitary forces
Civilians honored with the highest bravery awards by the Government
Armed forces personnel with disabilities rated between 76% to 100% from war or similar operations

Himachal Pradesh Property Tax Assessment Method

Under the provisions of the Act, the assessment of lands and buildings is based on the Annual Rent Value:

Property tax = Annual rent value * Rate of tax

Annual Value = Location Factor*Structural Factor*Age Factor*Occupancy Factor*Use Factor

Location factor

Number of zones: The entire old and merged municipal area is divided into zones A and B, with a location factor of 5 being the same for both zones.

Structural factor

Pucca-building value per Sq.m = 3.00
Semi-pucca building value per sq.m = 2.00
Kutcha building value per sq.m = 1.00

Age factor of the Buildings

Group Factor	Value
A	Before 1947	1.50
B	1947 to 1980	3.00
C	1981 to 2000	4.00
D	2001 and beyond	5.00

Occupancy factor

Value for residential occupancy:

(a) Self-residential Value	(b) Let out residential Value
2.00	2.50

Value per square meter for non-residential Occupancy:

A	B	C	D	E
Hotel above 2000 sq.m., MNC Showrooms, Restaurants	Hotel 1000 to 2000 sq.m., showroom above 1000 sq.m.	Other hotels, bars, restaurants, banks, ATMs, Showrooms, Call Centers	Shops, schools, colleges, offices, hostels, hospitals	Godowns, dhabas, stalls
12	10	8	7	3

Use factor:

Residential = 1.50
Non-Residential = 2.50

Tax Rate

The tax rate depends on usage, i.e., whether the property is residential, commercial, or industrial, and whether it is occupied by the owner or leased. Tax rates for units of lands and buildings are as follows:

For Lands:

For Zone A, the property tax charged on the net value is 15%. For Zone B, it is 10%.

A-zone	B-zone
3% p.a. for self-occupied residential properties measuring 1 sq.m to 100 sq.m	2% p.a. for self-occupied residential properties measuring 1 sq.m to 100 sq.m
6% p.a. for properties measuring 101 sq.m and above	4% p.a. for properties measuring 101 sq.m and above
10% p.a. for non-residential properties	5% p.a. for non-residential properties

Online Payment of Property Tax

The taxpayer can pay the Himachal Pradesh property tax online by visiting the official website of the Property Tax Management System under the Urban Development Department of Himachal Pradesh. The payee can make the payment as a registered user or as a new user without registration.

For Registered Users:

Enter the form number, select the Municipal Corporation, enter the owner's name and mobile number, and click Submit.

To pay without registration, enter the form number, select the Municipal Corporation, and click submit.

Learn more about online payment systems

Rebate

A statutory rebate of 10% is allowed for annual repairs and maintenance charges.
A rebate not exceeding 10% of the rent is allowed for a building let out with furniture.
10% rebate on the current year’s property taxes demand or on the property taxes demand raised for the first time is allowed if the assessee deposits the property tax bill within 15 days from the date of its receipt.

Note: If the tax bill is issued by post, the payment should be made within 18 days from the date of issuing to avail the 10% rebate. Explore tax rebates and updates

Penalty

Delayed payments, i.e., payments made after one month from the end of the financial year, will incur an interest of 1 percent per month until the payment date.

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Frequently Asked Questions

Common questions about Himachal Pradesh Property Tax Rates and Payment Procedure.

Himachal Pradesh Property Tax is applicable on all types of residential buildings, commercial buildings, factory buildings, office buildings, hotels, bars, godowns, and plots of land within the jurisdiction of the Himachal Pradesh Municipal Corporation.

The owner or joint owners of the property are primarily responsible for paying the property tax. If the property is leased out, the lessor is responsible for paying the tax. In case of sub-letting, the superior lessor is responsible for the tax payment.

The assessment of lands and buildings for Himachal Pradesh Property Tax is based on the Annual Rent Value, which is calculated using factors like location, structure, age, occupancy, and usage of the property.

Yes, certain properties are exempted from Himachal Pradesh Property Tax, such as agricultural land and buildings (except residential houses), vacant land and buildings used for public worship, charity purposes, burial grounds, or cremation grounds, and heritage properties notified for exemption.

The taxpayer can pay the Himachal Pradesh Property Tax online by visiting the official website of the Property Tax Management System under the Urban Development Department of Himachal Pradesh. They can either register as a user or pay without registration by providing the necessary details.

Yes, a statutory rebate of 10% is allowed for annual repairs and maintenance charges. Additionally, a rebate of up to 10% is available if the property tax bill is paid within 15 days (or 18 days for postal delivery) of receipt.

If the payment is made after one month from the end of the financial year, an interest of 1% per month will be charged on the outstanding amount until the date of payment.

The tax rates for Himachal Pradesh Property Tax are determined based on the usage of the property (residential or non-residential) and whether it is occupied by the owner or leased out. The rates vary from 2% to 10% of the ratable value, depending on the zone and other factors.

Yes, the tax rates for residential and non-residential properties in Himachal Pradesh are different. Residential properties have lower tax rates, ranging from 2% to 6%, while non-residential properties have higher tax rates, ranging from 5% to 10% of the ratable value.

Yes, the article mentions that one personal residential property owned by war widows, gallantry award winners in Police, Defense Forces, and Paramilitary Forces, as well as armed forces personnel who have sustained disability between 76 to 100 percent in a war or war-like operations, are exempted from Himachal Pradesh Property Tax.