Key Facts
Shimla, July 6, 2026: The Shimla Municipal Corporation has temporarily stopped issuing property tax bills after a major discrepancy in slab rates was detected. Residents who previously paid between ₹800 and ₹1,000 in tax are now receiving bills of ₹2,000 to ₹2,200 — nearly double the amount. The error was noticed when several citizens visited the corporation office to complain about the sudden hike.
Details of the Discrepancy
The issue arose after the corporation shifted to a new software system for tax calculation, as directed by the state government. Under the old system, properties up to 100 square meters were taxed at 3%, while the portion exceeding 100 square meters was taxed at 6%. The new software has applied a flat 6% rate to the entire property, regardless of size. This has caused bills to double for many residential property owners.
For example, a property owner who previously paid ₹800-1,000 in tax now receives a bill of ₹2,000-2,200. The corporation had started issuing bills just a week ago, after a delay of about three months. Within four days, hundreds of bills were generated, and some residents had already paid the inflated amount.
Impact on Residents
Shimla has approximately 32,000 property owners who pay tax to the municipal corporation. The slab rate error affects only residential (self-occupied) properties. Commercial buildings are taxed at a flat rate and are not impacted. Residents who have already paid the higher bills may seek adjustments once the correct rates are applied.
What the Corporation Says
Dr. Bhuvan Sharma, Additional Commissioner of Shimla Municipal Corporation, stated: “Residential property bills will not be issued until we receive clear directions from the state government on slab rates. We have written to the government seeking guidance.” The corporation has assured that only commercial property bills will continue to be issued in the interim.
What Residents Should Know
- If you have received an unusually high property tax bill, do not panic. The billing process is on hold.
- Do not make any payment until the correct slab rates are confirmed.
- Contact the Shimla Municipal Corporation office for clarification or to report any issues.
- Stay tuned for updates from the state government regarding revised tax rates.
Frequently Asked Questions
Why did Shimla Municipal Corporation stop issuing property tax bills?
Due to a discrepancy in slab rates that caused bills to double for residential properties. The corporation halted billing after receiving complaints.
How many property owners are affected in Shimla?
Approximately 32,000 property owners in Shimla are affected by the slab rate error.
When will residential property tax billing resume?
Billing will resume only after the state government issues new guidelines on slab rates.
Are commercial property tax bills also stopped?
No, only residential (self-occupied) property bills are stopped. Commercial building bills continue to be issued.