In India, property TAX calculation differs from state to state. There is no thumb rule as various formulas as used to calculate tax in India. The tax calculation takes into consideration many factors like type of property, location of the property, occupancy status (self- occupied or rented), floor and carpet area, number of floors constructed, etc.

The prime methods used in India for tax calculation are as follows:

1. Capital Value System: The finance Capital’s (Mumbai) municipal authorities calculate the tax using this formula. In this system, the tax is imposed on the percentage of the market value of the property. The state government depending on the location of the property, determines the market value of the property on yearly basis and make it public on various platforms

2. Unit Area Value System: Municipalities in Kolkata, Delhi, Patna, Bengaluru, etc. use this system to calculate tax. The tax is levied calculated on the per unit prices of the property’s built-up area. Furthermore, the per unit price is calculated on the basis of its usage, location and land price. Also, determine the actual tax amount, the per unit price calculated is multiplied with the total built-up area of the property

3. Annual Rental Value System: Also known as the Rateable Value System, this method is used by cities like Chennai and Hyderabad to calculate tax. Under this system, the yearly rental value of the property is taken into consideration to calculate tax. Also, rental value of the property is not calculated on the basis of the rent collected on the property, but it is a value that is decided by the municipal authority on the basis of the size, amenities, location and landmarks around the property