Maharashtra Hikes Ready Reckoner Rates: What It Means For Homebuyers

Property buyers across Maharashtra will face higher transaction costs starting April 1, as the state government has revised its Ready Reckoner Rates (RRR) for the 2025-26 financial year. According to the Maharashtra State Registration Department, the average increase in RRR across the state is 3.89 per cent, effective from April 1, 2025, as per various media reports.

Mumbai, the state’s economic hub, will see a 3.4 per cent rise in its reckoner rates, slightly below the state average.

The RRR, used by the government to calculate stamp duty and registration charges, plays a key role in determining the minimum market value of properties. The hike is likely to impact homebuyers and investors alike, with developers expected to transfer the additional costs to buyers.

This is the first RRR revision since 2022-23. While earlier speculation suggested that increases could touch double digits, Mumbai's hike remained relatively modest. However, other cities across Maharashtra are seeing steeper jumps:

Solapur: up by 10.17 per cent

Ulhasnagar: 9 per cent

Thane: 7.72 per cent

Nashik: 7.31 per cent

Navi Mumbai: 6.75 per cent

Municipal corporations outside Mumbai have reported an average hike of 5.95 per cent, while rural areas are seeing a 3.7 per cent increase.

In other news, providing relief to house owners in Mumbai, a recent ruling by the Income Tax Appellate Tribunal (ITAT) in Mumbai is expected to ease issues for thousands of homeowners involved in property redevelopment projects across India.

On March 15, 2025, ITAT announced that a new flat received in exchange for an old one via redevelopment cannot as taxed as “Income from Other Sources” under Section 56(2)(x) of the Income-tax Act, 1961.

Meanwhile, a similar trend of increased tax in terms of taxation was seen in Bengaluru. The BBMP recently announced a new property tax to cover stilt parking areas within buildings across Silicon City. Additionally, the authority also announced a garbage tax for house owners, as reported by Outlook Money earlier this year. Residential property owners are to pay Rs 600 annually for a 140 sq ft parking lot. This was assessed at 20 per cent of the assessed worth at Rs 2 per sq ft for a 10-month period.

Additionally, the non-residential building will have to pay 25 per cent of the parking space at a fee calculated at Rs 3 sq ft for 10 months.