IDUKKI: The luxury tax on residential buildings has generated ₹157.62 crore for the state over the past five years, with the highest revenue recorded in the 2025-26 financial year (FY).
According to data obtained through the Right to Information Act, the state collected ₹67.66 crore in FY2025-26 alone, with Ernakulam and Thiruvananthapuram reported as the highest contributors. The luxury tax revenue for the preceding years was ₹58.46 crore in FY2024-25, ₹7.39 crore in FY2023-24, ₹11.18 crore in FY2022-23, and ₹12.91 crore in FY2021-22.
Land revenue department officials attribute the increase in FY2025-26 to a growing number of larger homes and enhanced efforts to identify properties not currently paying taxes through detailed surveys. This information was disclosed in an RTI response received by Muhammed Ashraf from Kasaragod.
Under the Kerala Building Tax Act of 1975, the revenue department levies an annual luxury tax on homes that exceed a specified area limit, with different tax brackets based on home size. Currently, homes up to 278.7 sq m (around 3,000 sq ft) are exempt from this tax. Property owners who pay taxes in advance for five years or more can receive a 20% rebate, although this does not apply to overdue payments.
The RTI response also indicated that centralized data on luxury homes by district or villages with the highest concentration of such properties is not available. For detailed information, people are advised to contact their respective district collectorates or taluk offices.
The annual luxury tax is in addition to the one-time tax paid at village offices during the construction of new homes that exceed 3,000 sq ft. This tax must be paid every April, either directly through village offices or through online platforms, and any late payments are subject to a 6% annual interest fee.
