Homes in Mumbai of up to 500 sq ft carpet area have had a property tax waiver since 2022. In March 2026, the BMC’s general body voted to extend the waiver to homes of up to 700 sq ft. Many owners have asked whether they can stop paying. The short answer: not yet. This page explains where the proposal stands, and what to do with your bill in the meantime.
Key facts
- Homes up to 500 sq ft
- Property tax waiver in place since 2022 (carpet area)
- Homes 501 to 700 sq ft
- Extension approved by the BMC general body in March 2026; not yet in force as of October 2026
- Still needed
- Review by zonal officers and the Law Department, the Municipal Commissioner’s sanction, and an official circular
- Meanwhile
- Keep paying the bill you receive, to avoid penalties
What was approved in March 2026
The BMC’s general body unanimously passed a resolution in March 2026 to raise the waiver limit from 500 sq ft to 700 sq ft for residential homes. A general body resolution is the first step. Before the waiver can apply to bills, the proposal has to be processed by the zonal officers, examined by the Law and Judiciary Department, sanctioned by the Municipal Commissioner, and then notified by an official circular.
Where it stands now
As of October 2026, no circular bringing the 700 sq ft waiver into force has been reported, and owners continue to receive bills. We will update this page when the BMC issues it.
What owners should do
- Keep paying the property tax bill on time. Unpaid tax attracts penalties, and any waiver is likely to apply only from the date the circular says.
- Check your carpet area in your agreement, the occupancy certificate or the BMC’s assessment record. The waiver limits are understood to refer to carpet area.
- Check the bill for which components are charged, and keep your receipts.
- If your home is under 500 sq ft and you are still being billed for property tax, raise it in writing with your ward’s assessment and collection department.
- Watch for the circular. Once issued, it should say from which date the waiver applies and how to claim it.
Frequently asked questions
Is the 700 sq ft waiver in force?
Not as of October 2026. It was approved by the BMC general body in March 2026, but an official circular is still needed.
Does it apply to shops and offices?
The proposal is for residential homes.
Can I get a refund if I pay now?
That depends on the date from which the circular applies the waiver. Keep your receipts.
Related: housing society rules 2026, sale deed registration, property matters.
This page reflects the position reported as of October 2026. Check the BMC’s official circulars for the current position. It is not legal advice.