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Mumbai's civic body reported its highest-ever property tax collection for FY 2025-26, reaching INR 7,610.9 crore and surpassing its revised target. Andheri East's K-East ward emerged as the top contributor, followed by key commercial and residential hubs like Lower Parel and Andheri West. Western suburbs continued to dominate collections, while a strong push in enforcement, digital payments, and recovery drives supported the overall performance. A significant share also came from penalties and last-day payments, showing improved compliance but also dependence on delayed settlements.
Mumbai's municipal corporation recorded a property tax collection of INR 7,610.9 crore for the financial year 2025-26, exceeding its revised target of INR 7,341 crore. The achievement reflects a collection efficiency of over 100 per cent, making it one of the strongest performances in recent years. Advertisement
Among all wards, K-East ward, which covers Andheri East, reported the highest collection at INR 719.2 crore. This was followed by G-South ward, including Lower Parel and surrounding commercial areas, which contributed INR 670.6 crore. K-West ward, covering Andheri West, recorded INR 622.2 crore. Other key contributors included H-East ward (Kalina and Bandra East) with INR 577.8 crore and H-West ward (Bandra West) at INR 536.6 crore. These areas have a mix of commercial hubs, office spaces, and premium residential developments, which continue to support higher tax inflows.
Zone-wise data shows that the western suburbs remained the largest contributors, accounting for INR 3,721.3 crore of the total collection. The island city contributed INR 2,102.6 crore, while the eastern suburbs added INR 1,457.4 crore. This distribution highlights the growing importance of suburban micro-markets in Mumbai's revenue structure, especially areas with strong real estate activity and commercial presence.
Collections saw a sharp rise towards the close of the financial year, with INR 399.7 crore collected on the final day alone. This was one of the highest single-day collections recorded by the civic body. In addition, INR 301.1 crore was collected through penalties on delayed payments, indicating stricter enforcement measures and improved follow-up on dues.
Civic officials indicated that focused recovery drives, better tracking of defaulters, and the continued use of digital payment systems played a key role in improving collections. Over the past few years, the administration has worked on streamlining tax processes, reducing manual intervention, and encouraging online payments, which has helped widen the tax base and improve compliance levels.
Property tax continues to remain the largest source of revenue for the municipal corporation, funding essential services such as road maintenance, waste management, water supply, and public infrastructure. The steady rise in collections also reflects the impact of earlier revisions in valuation systems and increased coverage of taxable properties across the city.
In a related development, a proposal to increase the tax exemption limit for residential units from 500 sq ft to 700 sq ft is under consideration. If approved, it could impact future collections while providing relief to a section of homeowners.
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