Karnataka Extends 5% Property Tax Rebate, Offering Relief to Homeowners Until May 31, 2026

In a relief to property owners, the Karnataka government has extended the deadline to avail a 5% rebate on property tax payments for FY 2026–27. Taxpayers under the Greater Bengaluru Authority and the city's five municipal corporations can now claim the discount until May 31, 2026.
Karnataka Extends 5% Property Tax Rebate, Offering Relief to Homeowners Until May 31, 2026

Bengaluru, May 1: The extension aims to encourage timely payments and boost revenue collection, offering relief to those who have yet to pay while giving them another opportunity to benefit from the rebate.

"In the interest of taxpayers under the jurisdiction of the Greater Bengaluru Authority and the five municipal corporations of Bengaluru, the period for granting a 5% discount to taxpayers who pay property tax in full in the year 2026-27 has been extended till 31-05-2026," the government order said.

Rebate Details

The rebate applies to property owners who pay their annual property tax in a single lump sum. The extension aims to improve collections while giving homeowners additional time to arrange funds and complete payments without penalty.

Expected Benefits

The move is expected to benefit a wide base of residential and commercial property owners across the city. Homeowners say that such incentives, though modest in percentage terms, can translate into meaningful savings for owners of high-value properties, particularly in core and premium micro-markets.

Dhananjaya Padmabanachar, director of Karnataka Home Buyers Forum, said: "It will benefit homeowners, especially those in self-occupied units. Property tax for a 1,100 sq ft 2BHK is typically around ₹4,000–₹5,000 and increases for larger homes, so those paying the full annual tax can gain from the discount."

Digital Payment & e-Khata

Earlier, GBA had also indicated that digital payment channels and self-assessment systems remain available to streamline the process. Taxpayers are encouraged to verify property details and clear any pending dues.

Property owners in Bengaluru can now download their e-Khata online using their SAS Property Tax ID. Citizens need to visit the official e-Aasthi portal, sign in using mobile verification, and enter the property tax ID linked to their property records.

E-Khata is the electronic version of the traditional khata certificate, introduced by Bengaluru's municipal body in October 2024, allowing property owners to download and verify their khata without visiting the municipal office.