In a major push towards transparency and easy compliance, the Haryana government has mulled introducing a new ‘simplified’ methodology of realising the property tax on buildings and lands within the limits of municipal corporations, municipal councils and municipal committees across the state.The council of ministers has given in-principle nod to the new property tax regime, notified separately for municipal corporations under the Haryana Municipal Corporation Act, 1994 and for municipal councils and committees under the Haryana Municipal Act, 1973.Under the new assessment policy, a clear, formula-driven method of calculating Capital Value — based on plot area or carpet area, the applicable collector rate, and a floor factor has been adopted.Cities have been classified into four categories — A1 and A2 for municipal corporations, and B and C for municipal councils and committees — with floor and ceiling tax rates prescribed for each category.This will bring greater predictability and transparency for property owners, while allowing municipalities the flexibility to fix rates within the prescribed limits based on local needs.A usage-based multiplication factor has also been introduced, linking the tax liability to the size and nature of use of a property — residential, commercial, industrial, institutional or special category — ensuring that the tax burden is equitable and proportionate.To protect property owners from sudden increases, the rise in tax liability has been capped and will be phased in gradually until the fully revised assessed value is reached.Wide-range exemptionsWith the larger public interest in view, the new policy provides for wide-ranging exemptions from property tax. Key exemptions include:Religious properties, including temples, churches, gurudwaras, and mosques, that provide services to the public free of charge — 100% exemption.Municipal properties not given on lease or rent.Orphanages, almshouses, cremation and burial grounds, and dharamshalas.Government educational institutions and Government hospitals.Properties used exclusively for agricultural purposes.All gaushalas (except any portion used for commercial purposes other than sale of milk, dairy products, organic fertilisers, bio-CNG/biogas, cow dung and cow urine).Self-occupied residential houses of serving/ex-servicemen and paramilitary personnel, and families of deceased soldiers (up to 250 sq. m.).Self-occupied residential houses of freedom fighters, their spouses and war widows.Charitable educational institutions, charitable hospitals and schools for children with special needs (CWSN).Residential properties within Lal Dora of newly-included villages, for five years from inclusion in municipal limits (up to three floors).Free or unpaid parking units.Rebates to encourage compliance and social welfareThe new methodology also incorporates a structured rebate framework to reward timely compliance and support social welfare objectives. Key rebates include:75% rebate on property tax for residential properties within the Lal-Dora of existing villages falling in municipal limits.Up to a maximum combined rebate of 25% per property, comprising:10% for clearing all dues, including arrears, by 30th April of the current assessment year.5% for consistent taxpayers who have paid on time for 3 consecutive preceding years.25% on residential properties owned by women (proportionate in case of joint ownership).10% on residential properties owned by specially-abled persons (40% or more disability).10% for group housing societies/property clusters with a fully functional zero-waste management system.Smooth transition for property ownersTo ensure a smooth transition, property owners will have the option to pay tax as per the old 2013 notification for one month from the date of the new notification, after which the revised system will apply.Property owners who have already paid their dues will face no impact from the new methodology till Financial Year 2026-27, and arrears and interest pertaining to Financial Year 2025-26 and earlier will remain unaffected.