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Mangaluru civic body records highest-ever property tax collection of INR 149.6 crore in FY26

#Taxation & Finance News#India#Karnataka#Mangalore
Last Updated : 15th Apr, 2026
Synopsis

The Mangaluru City Corporation (MCC) has recorded its highest-ever property tax collection of approximately INR 149.6 crore for the financial year 2025-26, surpassing its projected target and previous years performance. The achievement, reported in the past week, reflects improved compliance driven by field inspections, data verification and awareness campaigns. The civic body exceeded its target of around INR 112 crore, with collections rising steadily from INR 137 crore in the previous year. The increase has been attributed to targeted surveys across select wards, identification of unassessed properties and streamlined collection mechanisms. The development underscores the growing importance of property tax as a primary revenue source for urban local bodies, supporting infrastructure and civic service delivery.

The Mangaluru City Corporation (MCC) achieved a record property tax collection of approximately INR 149.6 crore in the financial year 2025-26, surpassing its projected target and marking the highest-ever revenue generated under the Self-Assessment Scheme (SAS), as reported in the past week.


The civic body had set a collection target of around INR 112 crore for the year but exceeded expectations through a combination of enforcement measures, field verification and taxpayer outreach initiatives. The latest figures indicate a continued upward trend in collections, compared with INR 137 crore in the previous financial year and INR 117 crore in 2023-24.

Mangaluru has a total of approximately 2.22 lakh properties spread across 60 municipal wards, including over 1.75 lakh residential units, around 44,000 commercial properties and a smaller number of industrial and other categories. The scale and diversity of the property base have contributed to the corporation's ability to mobilise revenue through improved compliance mechanisms.

Officials indicated that targeted field inspections played a key role in enhancing collections. As part of a pilot initiative, MCC undertook physical verification of properties in select wards, including Attavar, Hampankatta and Padavu, to identify unassessed or under-reported properties. These inspections enabled the civic body to bring additional properties into the tax net and recover pending dues, contributing an estimated INR 55.3 lakh in incremental revenue from the surveyed areas.

The administration also conducted awareness campaigns to encourage timely payment of property tax, while offering incentives such as rebates for early payment. These measures were aimed at improving voluntary compliance and reducing the number of defaulters.

Property tax remains a key source of revenue for the civic body, supporting expenditure on infrastructure development and essential urban services. Officials noted that sustained improvements in collection efficiency would strengthen the corporation's financial capacity to undertake development works and maintain civic amenities.

In addition to field-level interventions, MCC has been working towards digitisation of property records and payment systems to streamline tax administration. Plans are underway to introduce technology-based measures, including digital platforms for advertisement permissions and payment tracking, which are expected to further enhance revenue monitoring and compliance.

The latest performance reflects a broader trend among urban local bodies focusing on strengthening internal revenue generation through improved enforcement and data-driven approaches. By combining field verification, digital tools and taxpayer outreach, the corporation has sought to address gaps in assessment and collection.

The record collection in FY26 indicates improved administrative efficiency and compliance levels, positioning property tax as a stable revenue stream for the city. The civic body is expected to continue similar measures in the coming financial cycles to sustain growth in collections and support urban development initiatives.

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