Madurai Property Tax: Rates, Rebates & Online Payment

Madurai uses the Annual Rental Value (ARV) system based on zonal Basic Street Rates (BSR). Half-yearly tax is computed from the Annual Rental Value: plinth area (sq ft) multiplied by the Basic Street Rate fixed for the street/zone, adjusted for usage (residential vs commercial), building age/depreciation and occupancy (owner vs tenant); the half-yearly tax is a notified percentage of this ARV plus library cess and education cess. Current residential rates: No single flat percentage — the rate depends on the street's BSR band and usage; residential rates were revised upward in the statewide 2022 revision (25-100% increase by ARV slab), with commercial assessed materially higher than residential for the same area.

Pay on the official Madurai Corporation portal (linked on this page) using your property identification number — have last year's receipt handy for the ID. Most portals accept UPI, net banking, and cards, and issue an instant e-receipt. 5% early-bird incentive on the current half-year's net tax if paid within the first 30 days of each half-year cycle (April 1-30 and October 1-30), capped at Rs 5,000 per assessment, under Section 84(1) of the TN Urban Local Bodies Act, 1998.

Late payment attracts penal interest of around 2% per month on arrears (standard for Tamil Nadu ULBs), and persistent default draws demand notices and recovery action.

Places of public worship, recognized educational institutions/government schools, government buildings and notified charitable institutions are exempt under the TN Urban Local Bodies Act.

Yes, for let-out property: municipal taxes actually paid during the year are deducted from gross annual value when computing income from house property. For self-occupied property there's no separate deduction, but paying it keeps your municipal records clean for any future sale.