Shimla’s New Property Tax System Promises Fairness, Flexibility, and Relief for Homeowners

Starting April, property owners in Shimla can expect a more flexible and fair taxation system, as the Municipal Corporation rolls out a revamped property tax model designed to ease financial burdens and reflect real-time ownership.

Under the new system, tax bills will be calculated on a daily or monthly basis rather than for the entire financial year. This change is especially beneficial for those who buy or sell property mid-year or complete construction toward the year’s end. Until now, even buildings finished in December were taxed for the full year starting in April—an unfair practice that often led to unnecessary expenses. The revised model ensures owners pay only for the months they actually own or occupy the property.

Municipal Commissioner Bhupendra Atri shared that a dedicated software is being developed to support the new system, which is expected to go live with the next financial cycle. “This initiative will not only ease the burden on citizens but also help boost the corporation’s revenue,” he said.

With over 31,600 properties under its tax net, the Corporation believes this change will streamline taxation amid rising property transactions in the city. Taxes will now be levied only for the duration of ownership, making the process more transparent and equitable.

At the same time, the Corporation is cracking down on tax evasion. Officials are conducting door-to-door surveys to gather accurate data on building size and usage. Notices will soon be issued to defaulters, and those who fail to pay by October 31 will face a five percent penalty.

For timely payers, the existing 10 percent discount for settling dues within 15 days of receiving the bill will continue—offering a small but meaningful incentive for compliance.

With this shift, Shimla is taking a progressive step toward smarter governance, ensuring that property taxation is not just a civic duty, but a fair and responsive system for its residents.