The K-East ward, encompassing Andheri East, has emerged as the leading contributor to property tax in Mumbai for the fiscal year 2025-26, with the BMC reporting an unprecedented collection of Rs 7,610.9 crore.
Civic data indicates that K-East ward topped the list with Rs 719.2 crore in collections, followed by G-South (Lower Parel and surrounding areas) at Rs 670.6 crore, K-West (Andheri West) at Rs 622.2 crore, H-East (Kalina and Bandra East) at Rs 577.8 crore, and H-West (Bandra West) at Rs 536.6 crore. Moreover, the western suburbs contributed the largest portion of collections at Rs 3,721.3 crore, with the island city following at Rs 2,102.6 crore and the eastern suburbs at Rs 1,457.4 crore.
Overall, the BMC exceeded its revised target of Rs 7,341 crore, achieving 103.7% of the objective. On March 31 alone, the civic body recorded a collection of Rs 399.7 crore, setting a new record for single-day recovery. An additional Rs 301.1 crore was collected in penalties.
Officials credited the impressive performance to ongoing recovery initiatives, focused actions against significant defaulters, and enhanced payment systems. Civic facilitation centres were kept operational on weekends and public holidays, while online payment methods were optimized to promote timely compliance.
Additional municipal commissioner (city) Ashwini Joshi stated that to promote timely payments, the BMC launched extensive public awareness campaigns. “Civic facilitation centres were operational on weekends and public holidays, and online payment options were improved. Special emphasis was also placed on recovering dues from major defaulters through targeted follow-ups,” she remarked.
Property tax remains the BMC’s largest single source of revenue, imposed on over 10 lakh properties throughout Mumbai. The civic body’s reliance on this revenue stream has intensified since 2017, when octroi – previously its primary revenue source – was abolished following the implementation of GST.
At present, approximately 360,000 properties in Mumbai are not subject to property tax due to their carpet area being less than 500 square feet. This policy has been in effect since 2022, as mandated by the BMC following a directive from the state government. Recently, the civic body approved a notice of motion aimed at raising the exemption threshold for property taxes on residential units from 500 square feet to 700 square feet. However, no decision has been made regarding this proposal as of yet.
