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Marlin Priya

Expert

Published on: Aug 11, 2026

Odisha Property Tax

Property tax is a direct tax imposed on real property and is a significant source of income for the local government. The taxation system requires the owners, lessees or occupiers of the property to pay the tax that is calculated on an annual basis. The collected money is utilized for various public services like constructing libraries, repairing roads, sanitation etc. Payment of property tax on time is essential to avail tax benefits and avoid legal hassles. In Odisha, the terminology holding tax is used to depict property tax. In this article, we look at features of Odisha Property Tax otherwise called as holding tax and the procedure to pay the same in detail.

The Odisha Municipal Act, 1950

As per Odisha Municipal Act, 1950, the State Government of Odisha collects holding tax. However, the state government has planned to get rid of holding tax and introduce property tax all municipal bodies / urban local bodies of the state. For property tax to be introduced, the Odisha Municipal Act, 1950 and Odisha Municipal Corporation Act, 2003 have to be amended. The rules and regulations regulating the property tax are still under process. Therefore, currently, Holding Tax is being collected under the Odisha Municipal Act, 1950.

Properties Liable for Property Tax

Property tax is applicable on all types of residential buildings, commercial buildings, industrial buildings. Under the Municipal Corporation Act, the valuation committee categorizes the land and the buildings based on its usage and its structural character to levy the holding tax.

  • Residential
  • Commercial
  • Recreation and Sports
  • Industrial
  • Hospitals and nursing homes
  • Educational
  • Public purposes
  • Hotels and Restaurants

Responsibility

As per the Act, the following personnel should pay the Holding Tax.

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

If the above-mentioned person fails to pay the tax, the occupier of the building will be charged.

Calculation of Odisha Property Tax

The holder who is in title with any holding within the corporation limits is liable to pay the Holding Tax @ of 20.5% of the annual rental value of the property depending on its nature, i.e. either residential or commercial. The method of calculating holding tax is as follows.

Annual Rental Value = Annual Rental Value per square feet X Total build up area (in square feet)

Annual Rental Value Calculation:

a)Residential    The Annual Value of a Holding for residential purpose is calculated as per following procedures. Step I   - Plinth area of the holding in Sq. Meter x Rs 13.65 Step II  -  Deduct 15% of the preceding value towards repair & maintenance Step III - Add 0.5% of the land cost where the holding is located (Land cost to be determined as per G.A. Department Notification dated 01.05.1998) Holding tax of 20.5% of the Annual Value is levied that includes Latrine Tax - 2.5% and Street Light - 5% . b) Commercial holding  The Annual Value of Holding of a Commercial unit is calculated as follows. Step I   - Add Civil Cost of the building + the cost of P.H & Electric fitting Step II  - Take 7.5% of the arrived value Step III - Add 0.5% of the land cost with the previous value Step IV - The Holding Tax payable per annum is 20.5% of the cost arrived at Step III. C) Residential holding used on rent Calculation of tax for holdings given on rent is as follows: Step I - Monthly rent of the building x 12 Step II - Deduct 15% of the previous value towards maintenance cost Step III- Add 0.5% of the Land Cost where the building is located Step IV- Hence, the annual value of the building is the sum of Step I and Step III, from which the value arrived at Step II is deducted. Note: Government buildings, government hospitals, government educational institutions, government cultural institution and other such government institutions are being exempted of paying 10% Holding Tax as per the Act.

Categories of buildings and rates of annual rental value: 

Residential Buildings Rs 2.00 per sq ft
Small Shops Rs 5.00 per sq ft
Kalyan Mandap, Gold Shop, Nursing Home, Hotel & Lodging etc. Rs 7.00 per sq ft
Bank, Insurance, Companies & Show Rooms Rs 10.00 per sq ft

Failing to pay the Holding Tax as per the provision of the Act can invoke of the penalties under the Act.

Online Payment of Odisha Property Tax

The citizens of Odisha can make online payment of holding/property tax through the e-Municipality Odisha online portal.

Step 1: Visit the official website of e-Municipality Odisha Step 2: Under “Quick Services” click on Property/Holding Tax Odisha Holding Tax - eMunicipality Odisha Holding Tax - eMunicipality Step 3: Choose your District and the respective ULB from the given dropdown. Step 4: Click on “Login”.  Enter the login credentials to access the e-Municipality application. Odisha Holding Tax- Property tax services Odisha Property Tax - Property tax services Step 5: Provide required details and make necessary payment. To view demand or check payment status before payment, click on ‘View Demand/Payment Status’ under property tax services.  Fill all the details and click on “Search” button. In the screen that appears, check the assessment Details, Demand Details and Payment Details. Step 6: After making required payment, print the receipt.

Generation of Holding Number

If no holding number has been assigned or the building has not yet been assessed for holding tax, apply for holding number using the holding number application with ROR of the land, CDA approved plan.

Step 1: Under the Property tax services, click ‘Apply online for Holding Number’. Step 2: The application form appears. The application for the holding number includes the following details.
  • Application Details
  • Owner Details
  • Plot Details
  • Cost of construction
  • Plan Approval
  • Details of Building if Let-Out
  • Accessible to Holding Tax
Odisha Holding Tax - Generation of Holding Number Odisha Property Tax - Generation of Holding Number Note: Accessible to holding tax, if the property is already assessed, click ‘previously assessed’ from the drop-down options. If the building has not yet been assessed, select ‘not assessed’. Step 3: After entering all the details, click on “Submit”. Step 4: A new application number will be generated and a SMS will be sent to the mobile number provided with the application number and to search for the status.

Check Application Status

Step 1: Under the Property/Holding Tax services, click ‘Check Application Status’. Step 2: In the appeared screen, enter the application number/ application date or the online request number in the box and click on “Search” button. Odisha Holding Tax- Check Application Status Odisha Property Tax - Check Application Status Step 3: Application number along with the application status will be displayed on the screen.

Calculate Property/Holding Tax

Step 1: Under the Property/Holding Tax services, click ‘Calculate Property/Holding Tax’. Step 2: Choose the Method (Annual Rent Value or Unit Area) and Building Type (Residential, Commercial, Industrial). Step 3: After the above step, another box appears, asking Land Value (GA) or any other details. Fill the required details and click on “Calculate Tax”. Odisha Holding Tax- Calculate Holding tax Odisha Property Tax - Calculate Holding tax Step 4: The tax amount will appear on the screen. Note: You should apply for re-assessment providing the details of construction i.e. number of floors or rooms added, their area and the purpose for which the extension is used etc.
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Frequently Asked Questions

Common questions about Odisha Property Tax.

Property tax in Odisha, also known as holding tax, is a direct tax levied on real estate properties such as residential buildings, commercial buildings, and industrial buildings. It is a significant source of revenue for the local government and is utilized for various public services like constructing libraries, repairing roads, and sanitation.
The property tax in Odisha is calculated as 20.5% of the annual rental value of the property, which is determined based on the nature of the property (residential or commercial) and its built-up area. The annual rental value is calculated using different formulas for residential and commercial properties, taking into account factors such as plinth area, repair and maintenance costs, land cost, and civil construction costs.
According to the Odisha Municipal Act, 1950, the responsibility for paying property tax lies with the owner or joint owners of the property. If the property is leased, the lessor or the superior lessor (in case of sub-letting) is responsible. If the property is not let out, the person who has the right to let it out is responsible.
Yes, citizens of Odisha can make online payment of property tax (holding tax) through the e-Municipality Odisha online portal. The portal provides a step-by-step process for paying property tax, checking demand or payment status, and generating a receipt.
If a holding number has not been assigned or the building has not yet been assessed for property tax, you can apply for a holding number online through the e-Municipality Odisha portal. The application process requires details such as the Record of Rights (ROR) of the land, CDA-approved building plan, cost of construction, and owner's information.
You can check the status of your property tax application in Odisha through the e-Municipality Odisha portal. Under the "Property/Holding Tax services," select "Check Application Status" and enter your application number, application date, or online request number to view the current status.
Yes, the e-Municipality Odisha portal provides an online facility to calculate the property tax amount. Under the "Property/Holding Tax services," select "Calculate Property/Holding Tax" and provide the required details such as the method of calculation (Annual Rent Value or Unit Area), building type (residential, commercial, or industrial), land value, and other relevant information.
According to the Odisha Municipal Act, 1950, government buildings, government hospitals, government educational institutions, government cultural institutions, and other such government institutions are exempted from paying 10% of the property tax (holding tax).
Failing to pay the property tax (holding tax) as per the provisions of the Odisha Municipal Act, 1950, can invoke penalties under the Act. However, the article does not provide specific details regarding the nature or amount of these penalties.
Yes, according to the article, the terminology "holding tax" is used to depict property tax in Odisha. However, the state government has planned to introduce property tax and phase out the term "holding tax" for all municipal bodies and urban local bodies in the state, which will require amendments to the existing Acts.