Luxury tax on large houses garners 157cr in five years

Idukki: Luxury tax from residential buildings contributed Rs 157.62 crore to the state exchequer in the last five years, with the highest revenue recorded in 2025-26 financial year (FY).According to figures obtained through Right to Information Act, in FY2025-26 alone, the state collected Rs 67.66 crore. The highest collections were reported from Ernakulam and Thiruvananthapuram. The luxury tax revenue in FY2024-25 stood at Rs 58.46 crore, Rs 7.39 crore in FY2023-24, Rs 11.18 crore in FY2022-23 and Rs 12.91 crore in FY2021-22. According to officials from land revenue commissioner's office, growing number of large houses in the state and intensified efforts by revenue department to identify houses outside the tax net through detailed surveys were the main reasons behind the increase in revenue collection in FY 2025-26. The details were disclosed in an RTI reply received by Muhammed Ashraf from Kasaragod.Under Kerala Building Tax Act, 1975, revenue department imposes annual luxury tax on houses exceeding the prescribed area limit. The tax is levied in different slabs based on the size of the house. Houses measuring up to 278.7sq m (approximately 3,000sq ft) are currently exempted from luxury tax. Property owners paying tax in advance for five years or more are eligible for a 20% rebate, though the concession is not applicable to arrears.The RTI reply stated that there is no centralised data available regarding district-wise number of luxury houses or the village with the highest concentration of such houses. Authorities said the information can be obtained from the respective district collectorates or taluk offices.The annual luxury tax is imposed in addition to the one-time tax paid at village offices during construction of new houses exceeding 3,000sq ft. The tax has to be remitted every April, either directly through village offices or through online portals. Delayed payment will attract 6% annual interest.BoxRaking in the moolahFY 2025-26 - Rs 67.66 crFY 2024-25 - 58.46 cr FY2023-24 - Rs 7.39 crFY2022-23 - Rs 11.18 crFY2021-22 - Rs 12.91 croreHouses measuring up to 278.7sq m (approx 3,000sq ft) are exempt from luxury taxProperty owners paying tax in advance for five years or more are eligible for 20% rebate