Property Tax in Gurgaon 2026: New MCG Rates, Rebates and Worked Examples

How property tax is calculated in Gurgaon from August 2026

Haryana scrapped the flat per sq ft and per sq yd rates it had used since 2013. The Cabinet approved a new method on 28 July 2026, the Urban Local Bodies department notified it on 30 July, and it applies from 1 August 2026. The Municipal Corporation of Gurugram still collects the tax; what changed is the formula.

The formula is: property tax = capital value × tax rate × usage factor. For a flat, capital value is carpet area multiplied by the collector (circle) rate. For an independent floor, it is the plot area times the collector rate, shared out floor-wise. For a house, it is plot area times collector rate times a floor factor, where the ground floor counts as 1 and each additional self-occupied floor adds 0.25.

Cities are put into four bands. Gurugram, Faridabad and Manesar are A1. For A1, the residential tax rate starts at 0.03% of capital value a year and the corporation may set it anywhere up to three times that, 0.09%. Non-residential property starts at 0.1%. So the number that drives your bill is now the collector rate for your sector, which Gurugram raised on 1 April 2026.

Usage factors and the cap on increases

Smaller homes get a discount through the usage factor. A flat of up to 100 sq m carpet (about 1,076 sq ft) is taxed at 0.75 of the computed amount; anything larger at the full 1.0. Houses and independent floors have finer steps: 0.25 up to 50 sq m, 0.5 up to 100 sq m, 0.75 up to 200 sq m and 1.0 above that.

Because the new bills can be several times the old ones, the policy caps how fast they rise each year until the full amount is reached: 1.25 times for flats up to 100 sq m and houses up to 250 sq m, 1.5 times for houses of 250 to 350 sq m, and 2 times for all other residential property. Owners who had already paid for 2026-27 under the old rules are not affected for that year, and arrears up to 2025-26 stay as they were.

Property tax examples for Gurgaon flats

These use the A1 floor rate of 0.03% and the 2026-27 collector rates for group housing flats. If MCG fixes a higher rate within its ceiling, multiply accordingly; at the 0.09% ceiling every figure below triples.

A 1,500 sq ft carpet flat in a Golf Course Road sector, where the collector rate is ₹10,780 per sq ft, has a capital value of ₹1,61,70,000 and a tax of ₹4,851 a year. Under the 2013 rules the same flat paid ₹1 per sq ft, or ₹1,500. A 1,200 sq ft carpet flat on Dwarka Expressway Sectors 99 to 110, at ₹6,000 per sq ft, comes to ₹2,160. A 900 sq ft carpet flat there falls under 100 sq m, so the 0.75 factor applies and the bill is ₹1,215.

At the top end, a 5,000 sq ft carpet apartment in The Camellias, whose collector rate is ₹43,340 per sq ft, has a capital value of about ₹21.67 crore and a base tax of ₹65,010 a year. Let it out and that becomes ₹81,263. Register it to a woman who lives there and the 25% rebate takes it to ₹48,758.

Old vs new: how much more will Gurgaon owners pay?

The 2013 notification charged flats in A-1 cities ₹1 per sq ft up to 2,000 sq ft and ₹1.20 per sq ft from 2,001 to 5,000 sq ft. Plots and houses paid per sq yd: ₹1 up to 300 sq yd and ₹4 from 301 to 500 sq yd. Those rates did not move for 13 years while collector rates rose several times, which is the gap the new policy closes.

For a typical Golf Course Road flat, the bill roughly triples at the floor rate. Expect it to arrive in steps because of the cap, for example a 1,500 sq ft flat paying ₹1,500 last year can be billed at most ₹3,000 this year under the 2 times limit, then the full ₹4,851 the year after.

Property tax rebates in Gurgaon

Rebates are only given on self-certified properties and only when 100% of dues, arrears and interest included, are paid. You can stack them, but no property gets more than 25% in total. The early payment rebate needs everything cleared by 30 April, so for practical purposes that is the date to work to each year.

Exemptions, penalties and the No Dues Certificate

Fully exempt are self-occupied homes of serving and former defence and paramilitary personnel and their families, up to 250 sq m, if it is their only house in Haryana; homes of freedom fighters and war widows on similar terms; religious buildings serving the public free; and agricultural land. Free parking units are not taxed.

Late payment attracts simple interest of 1.5% a month or part of a month. A wrong declaration costs a penalty of twice the tax evaded plus the same interest, and unauthorised construction or use attracts a penalty of twice the tax until regularised.

In practice property tax matters most when you sell. The state's property tax portal issues a No Dues Certificate that clears property and fire tax, development charges and garbage collection charges against your Property ID, and on a resale that certificate is the document everyone asks for. For a resale purchase, make the seller clear every arrear and hand over the receipts before you pay the balance. For NRIs who let their flat, remember the owner is liable, not the tenant, and the 1.25 times rent loading now applies.