If you are looking into purchasing a property, be it residential or commercial, you may be wondering what is property tax. It is the amount you need to pay the government for the property you own.
The tax amount is based on the property’s value, the area, construction, and other factors. The local government or municipal corporation calculates it annually or semi-annually and uses the funds to provide facilities such as sanitation, water supply, road connectivity and more.
In India, the property tax typically ranges between 5% and 20%. Here is the formula to calculate it: Property tax = Base value × Built-up area × Age factor × Type of building × Type of use × Floor factor.