{
  "type": "article",
  "title": "In Faridabad, your neighbourhood's collector rate will now decide how much property tax you pay",
  "summary": "Faridabad's property tax will now also be based on the collector rate of a colony, meaning identical houses in different areas could face different tax bills. Rented-out houses will additionally attract a 0.25 percent surcharge.",
  "content": "Homeowners in Faridabad are set to see a big change in how their property tax gets calculated, and it could mean that two identical houses end up with two very different tax bills. Under the new system, the tax will no longer depend only on the size of the plot, it will also depend heavily on the collector rate of the colony the house stands in.\n\nHow the new formula works\nAccording to Faridabad-based advocate Manish Parashar, the government has worked out a fresh formula to calculate property tax. The first step is arriving at what is called the capital value of the property. This capital value is obtained by multiplying three factors together, the collector rate, the plot area and something called the floor factor. Whatever figure comes out of this multiplication becomes the capital value of the house, and the taxable amount is then calculated on that basis.\n\nWhy the same size house may not mean the same tax\nParashar explains that every colony and sector in Faridabad has its own collector rate, and since the collector rate now sits at the centre of the formula, two houses of identical size can end up paying different amounts of tax simply because they are located in different colonies. Wherever the collector rate is higher, the tax bill for houses in that colony or sector is likely to be higher too. In effect, it is no longer just the size of a house that decides the tax, the neighbourhood it sits in now matters just as much.\n\nThe floor factor rises as the house grows taller\nThe new rule also takes the number of floors into account. If a house has only a ground floor, its floor factor is counted as one. As more floors get added on top, the floor factor keeps rising along with them. Because this floor factor is directly multiplied into the capital value calculation, adding a floor can push up the final tax amount. Whether it is a two storey house or a three storey one, every additional floor can add to the tax burden.\n\nEarlier, only the plot area decided the tax\nUnder the old system, Parashar says, property tax was worked out purely on the basis of the plot area, and the collector rate, or what is also called the circle rate, played almost no part in it. That is why, across different colonies of the city, houses of the same size ended up paying roughly the same tax, whether the colony was an upscale one or an ordinary one. With the collector rate now forming the basis of the calculation, that uniformity will disappear, and the tax for every colony and sector will move according to its own collector rate.\n\nAn extra charge for rented-out houses\nThe most direct impact of the new rule will fall on homeowners. Those who live in their own houses will simply pay tax under the new formula. Tenants, on the other hand, will not feel a direct hit, but a separate rule has been set for owners who have rented their property out. The government has decided that an additional charge of 0.25 percent will be levied on houses that are given out on rent. That means owners who rent out their property could end up paying somewhat more tax than those who live in their own homes. This is exactly why anyone holding property in Faridabad now needs to understand how the new tax system works and how much of a dent it could put in their pocket.\n\nWhat this means for you\nIf you own a house in Faridabad or rent one out there, your annual property tax bill could change under this new system.\n\n• Across India: Several states are moving towards linking property tax to collector or circle rates, so homeowners elsewhere may soon need to get into the habit of checking their area's collector rate too.\n• In Faridabad: Owners in colonies with a higher collector rate could see a bigger tax bill than before. It is worth checking your sector's current collector rate now so the new bill doesn't come as a surprise.\n• For landlords: You will now have to pay an extra 0.25 percent charge on rented-out property. Factor this additional cost in when working out how much you actually earn from renting your house.\n• For multi storey homes: More floors mean a higher floor factor, and a higher floor factor means more tax. Anyone planning new construction should account for this added cost in advance.\n• For homebuyers: Before buying, check the collector rate of the area, not just the price of the house, since that rate will decide your tax bill for years to come.\n\nQuestions & Answers\n\n1. What is the new basis for calculating property tax in Faridabad?\nProperty tax will now be based on the capital value, which is arrived at by multiplying the collector rate, plot area and floor factor.\n\n2. Can two houses of the same size have different tax bills?\nYes, if the two houses are in different colonies with different collector rates, their tax amounts can differ.\n\n3. How does adding more floors affect the tax?\nA house with only a ground floor has a floor factor of one, and the floor factor rises as more floors are added, which can push up the tax amount.\n\n4. How was tax calculated under the old system?\nUnder the old system, tax was based only on the plot area, and the collector rate played almost no role.\n\n5. Will tenants be affected by the new rule?\nTenants will not feel a direct impact, but owners who rent out their houses will have to pay an additional 0.25 percent charge.\n\n6. Who explained the new rule?\nFaridabad-based advocate Manish Parashar explained the details of the new tax formula.",
  "url": "https://trendkia.com/en/haryana/faridabad-men-aba-kalektara-reta-taya-karega-ghara-ka-taiksa-parosa-badalate-hi-chukani-paregi-alaga-rakama-28535",
  "category": "Haryana",
  "publishedAt": "2026-09-06",
  "tags": [
    "Faridabad property tax",
    "collector rate",
    "Haryana tax rules",
    "floor factor",
    "capital value",
    "rented house",
    "Manish Parashar"
  ],
  "language": "en",
  "site": "TrendKia"
}