Legal
Property Tax in Karnataka: Simplified
How the assessment works
Karnataka urban bodies use a unit-area value system: a per-sqft rate set by zone and usage, multiplied by your built-up area, adjusted for age depreciation and occupancy type. Self-occupied and rented homes are rated differently, and commercial usage is higher.
Khata matters more than most buyers realise
- A-khata — the property is on the approved records of the local body; tax, transfers and loans are straightforward.
- B-khata — the property is recorded but the layout or construction lacked full approval. Tax is collected, but resale, home loans and regularisation carry risk.
Never assume tax receipts prove approval. A receipt only proves someone paid.
The annual routine
File and pay within the rebate window each year for the discount, keep the challan and the assessment printout together, and check that the built-up area on the record matches reality after any extension.
Where arrears come from
- Ownership change without a khata transfer, so bills keep going to the previous owner.
- Additions or a new floor never declared, discovered at resale.
- Usage change from residential to commercial without reassessment.
- Vacant land tax quietly accruing on a plot the owner never registered for assessment.
Before you buy
Ask for the last three years of paid receipts, the khata extract and the assessment register entry. Verify the seller's name matches. UrbanEarth hands this set over as part of every transaction we manage.