Karnal MC sets August 31 deadline to clear dues before new property tax regime from September 1

With the state government set to introduce a new collector-rate-based property tax assessment system from September 1, 2026, Karnal Municipal Corporation (KMC) has asked all property owners, including Central and state government departments, to clear their property tax dues by August 31. If dues are not cleared by the deadline, property tax under the new system will be applicable from September.

“The state government has introduced a new collector-rate-based property tax assessment system to replace the existing system. Property owners have a transition window to pay under the existing rates until the end of August. Under the new methodology, tax will be calculated using a formula based on plot or carpet area, collector rate and floor factor,” said Saloni Sharma, Commissioner, KMC.

Under the new regime, the government has divided cities into different categories with varying tax rates. The Municipal Corporations of Faridabad, Gurugram and Manesar fall under the A1 category. The residential property tax rate here will be 0.03% of the capital value of the property, while the non-residential rate will be 0.10%. The Municipal Corporations of Ambala, Hisar, Karnal, Panchkula, Panipat, Rohtak, Sonepat and Yamunanagar are in the A2 category. The residential tax rate will be 0.029% and the non-residential rate will be 0.09%. All municipal councils have been placed in the B category, and all municipal committees in the C category, according to the notification issued by the department.

Meanwhile, KMC has expedited efforts to recover property tax and service charges from state and central government buildings, with outstanding dues exceeding Rs 200 crore. The KMC Commissioner held a meeting with representatives of these departments a couple of days ago and directed them to clear their dues. According to KMC, 15 Central government departments/institutions and 16 departments and institutions of the Haryana Government owe this amount.

The Commissioner said August is the last opportunity for those yet to clear their outstanding property tax dues to settle their liabilities under the existing system. Once the revised rates come into force, tax liability will be calculated under the new regime.

“I appeal to all property owners to clear their dues during August,” she added.

The Commissioner also urged property owners to avail the benefit of the state government’s offer of a 75 per cent waiver on interest on property tax dues until August 30.

She said that from September, the full outstanding amount will have to be paid, and Corporation will initiate action as per rules against those who fail to clear their dues.