The Thane Municipal Corporation (TMC) has approved a property tax hike for the first time in eight years, clearing a 12 percent increase on residential properties and a 20 percent increase on non-residential (commercial) properties at its general body meeting on August 17. The revision is expected to bring in an additional ₹104.67 crore a year: roughly ₹63 crore from homes and ₹42 crore from commercial units.

Why now

Thane’s property tax rates have not been revised since 2018. In that time the corporation’s own costs, including salaries, contractor bills, and infrastructure upkeep, have climbed. Shiv Sena corporator Hanmant Jagdale, defending the move, said the increase was “crucial for the corporation to bail itself out from the current financial crunch” and would let TMC “undertake more development work.” The civic body also changed how it calculates transfer fees on property deals, moving from a per-square-foot formula to 0.5 percent of the government-approved market value. That change alone could raise costs for anyone transferring property in the city.

Some relief remains built in. Homes under 500 square feet keep their existing full exemption, and ex-servicemen retain their concessions.

What it means for residents

An average homeowner will see a real, recurring increase on the next tax bill. Because this is the first revision in eight years, the jump will land harder than a typical annual increase. Commercial property owners face a steeper 20 percent rise, a cost many will pass on to tenants and customers. Anyone buying, selling, or transferring property in Thane should also budget more for paperwork, since transfer fees now track market value rather than flat area-based rates.

Opposition parties have pushed back. BJP deputy mayor Krishna Patil and group leader Mukesh Morashi argued the proposal was rushed through without adequate discussion. They plan to write to Chief Minister Devendra Fadnavis, pointing out that TMC should recover more than ₹1,200 crore in existing tax arrears before asking compliant taxpayers to pay more. NCP (Sharad Pawar faction) district president Manoj Pradhan called the hike unjustified given what he described as inadequate civic services, and threatened street protests if the corporation does not reconsider.

What to watch

Whether the opposition’s protests and appeal to the Chief Minister produce any rollback or phased implementation will determine how soon residents actually feel the increase. Also worth tracking: whether TMC recovers its outstanding arrears, which would show whether the hike comes paired with better collection discipline or simply sits on top of the existing gap.

Sources: LatestLY, Free Press Journal

This report was compiled and written with AI assistance from publicly reported sources, and reviewed for accuracy.