Recently, I faced this issue and asked my lawyer friend why are my property taxes so high compared to my neighbors. She said, if your property tax bill is significantly higher than your neighbour’s, it’s usually due to a mix of factors, primarily the way local authorities assess and classify properties, rather than any error. Several key elements contribute to these differences.
Why Your Property Taxes May Be Higher Than Neighbors?
Firstly, the valuation base used by your municipal body could differ. Depending on the city, property tax may be calculated under the Digital India Land Records Modernization Programme (DILRMP) influenced systems. Properties in more premium zones or those built/completed recently tend to get higher valuations, resulting in higher tax.
Property characteristics matter. A larger built-up area, more floors, added amenities (like a terrace or swimming pool), commercial usage, rather than purely residential, or a property located on a corner/prime road will have a higher assessed value.
Rebates affect tax. If your neighbour enjoys a rebate (for example, self-occupied residential status, senior citizen discount, or female-owned property), their payable tax may be lower.
When your property is classified as partly commercial or non-owner-occupied, it attracts higher rates. Indian sources list owner-occupied residential use, type of property, and zone as major influencers.
Finally, the timing of assessment updates can skew things. If your property was reassessed recently (due to renovation or change in use) and your neighbour’s wasn’t, you may pay more until theirs is revised. Local policy differences (ward-wise and zone-wise) further add to the disparity.
I hope you found this information helpful.
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Why are My Property Taxes So High Compared to My Neighbors?
ruchi
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52 days
2025-11-05T19:30:15+00:00 2025-11-05T19:30:17+00:00Comment
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