New property tax regime comes into force in Hyderabad region under CURE Act

Property taxes in the Hyderabad region covered by the newly formed Greater Hyderabad Municipal Corporation (GHMC), Cyberabad Municipal Corporation (CMC) and Malkajgiri Municipal Corporation (MMC) will be governed by the newly notified CURE Act, 2026.

Hyderabad: The new property tax regime in the Hyderabad region, encompassing the three newly formed municipal corporations will become effective from this month with the Core Urban Region Economy (CURE) Act– 2026 being notified in a gazette.

The new Act, which paves the way for the new property tax structure has become operational from this month, but the collection of property tax under the new structure will come into effect after the three municipal bodies, the Greater Hyderabad Municipal Corporation (GHMC), Cyberabad Municipal Corporation (CMC) and Malkajgiri Municipal Corporation (MMC) notify the tax structure.

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The new structure will have major changes compared with the earlier one. In the new structure, properties will be assessed based on the guideline value fixed by the Registration Department and tax will be determined accordingly.

The applicable rates based on the guideline values would be 0.15 percent for residential properties, 0.75 per cent for non-residential properties, and 0.50 per cent for vacant land.

The existing property tax assessment will be treated as the Base Property Tax. Where the tax calculated based on the guideline value is higher, the annual increase will be limited to 10%, allowing a gradual transition to the revised tax level.

In addition, the property tax will be revised whenever the Registration Department revises guideline values and any resulting increase would take effect from the next financial year, beginning April 1, 2027.

Eligible owner-occupied residential properties measuring less than 375 sq ft will attract a nominal annual property tax of Rs 101. A five per cent rebate will be available for payment of the full year’s property tax before April 30.

A penalty ranging from 25 per cent to 300 per cent of the property tax may be imposed on unauthorized constructions. Payment of the penalty does not regularize unauthorized construction, the Act stipulates.

An online Self-Assessment facility for new properties is available either on the official GHMC, CMC, and MMC websites or through the My CURE App. Citizens can submit the required property details online, following which the Corporation will undertake the necessary inspection and verification.