MCD collects ₹3,116 crore in property tax, falls ₹400 cr short of target

Delhi's Municipal Corporation collected ₹3,116 crore in property tax for 2025-26, falling short of its ₹3,500 crore target despite a 46% revenue increase.

New Delhi: The Municipal Corporation of Delhi has collected property tax worth ₹3,116 crore in 2025-26, running short of the ₹3,500 crore target set by the civic body.

MCD official said the corporation collected ₹441.56 crore from outdoor advertisements.

Overall 13,52,552 properties paid their taxes, however, a large section of Delhi still remains out of tax net as only a fraction of the number of properties pay property taxes in the city.

MCD revenue of ₹3,116 crore was collected from 1,352,562 property tax payers in comparison to ₹2,132.89 crore received from 1,133,161 taxpayers in 2024-25.

“Although the corporation witnessed a 46% increase in property tax revenue, it fell short of its ₹3,500 crore target by ₹400 crore,” official said.

The corporation had initially set a property tax revenue target of ₹4,000 crore for 2024-25; however, it was revised downward by ₹500 crore. Despite offering rebates on outstanding property tax dues to property owners, the MCD failed to achieve its set revenue targets.

Under the property tax amnesty SUNIYO scheme, the property owners can avail waiver of interest and penalties by clearing the current year’s tax along with dues from the previous five years. Under the scheme, a total of ₹1,236 crore in property tax was collected from 206,861 taxpayers. Of this, ₹242.87 crore was collected from over 147,000 residential properties, while ₹993.52 crore was collected from over 59,000 non-residential properties.

“Furthermore, 111,909 new taxpayers paid property tax for the first time by availing the scheme benefits. This has generated a revenue of ₹448.89 crore,” official said.

MCD official said the corporation collected ₹441.56 crore from outdoor advertisements and ₹265 crore from the Remunerative Projects cells which looks after parking and other revenue generating activities.

NDMC collections

Meanwhile, New Delhi Municipal Council (NDMC’s) collection from property tax and transfer duty stood at ₹1,396.82 crore in 2025-26, up from ₹1,040.33 core last year.

NDMC vice chairman Kuljeet Chahal said, “Our aim is to collect taxes from citizens without causing them any undue harassment. Many people came forward to clear their outstanding dues. There are 16,000 taxpayers within the NDMC jurisdiction. Revenue collections are expected to rise even further next year as NDMC is moving towards implementing the Unit Area Method.

Chahal said that effective October, the Power Purchase Adjustment Charge (PPAC) levied by the NDMC was reduced from 50 per cent to 8.75 per cent. As a result, the total electricity billing issued for 2025-26 amounted to ₹1,735 crore — compared to the ₹1,962 crore in 2024-25.