VIJAYAWADA: Andhra Pradesh’s property tax collection for the financial year 2025-26 has shown strong gains, according to Demand-Collection-Balance (DCB) data released by the Municipal Administration and Urban Development (MA&UD) Department.
As of March 31, 2026, the total property tax demand across all Urban Local Bodies (ULBs) in the State stood at Rs 2,556.71 crore, against which Rs 1,960.74 crore was collected. This reflects an overall collection efficiency of 76.69%, underscoring the impact of reforms such as GIS-based property mapping, digital payment systems, and ward-level collection drives.
Private properties contributed the bulk of tax collection, with a demand of Rs 2,074.98 crore and collection of Rs 1,785.12 crore, achieving 86.03% efficiency. Vacant lands and government properties, however, remain weak links, recording rates of 36.55% and 43.45%, respectively. These segments continue to pose challenges for ULBs despite the State’s push for improved compliance.
Among the 17 municipal corporations, Mangalagiri-Tadepalli emerged as the top performer, achieving 87.18% efficiency with a collection of Rs 35.82 crore against the demand of Rs 41.08 crore. Rajahmundry followed with 84.52% efficiency, while Tirupati recorded 82.18% efficiency. Nellore also performed strongly at 80.15% efficiency. Further down the list, Vijayawada registered a demand of Rs 208.20 crore and collection of Rs 163.81 crore, achieving 78.68% efficiency. The Greater Visakhapatnam Municipal Corporation, despite having the highest demand of Rs 670.63 crore in AP, managed 67.15% efficiency, collecting Rs 450.40 crore and leaving a balance of over Rs 220 crore.
This highlights the challenge of scale. While larger corporations collect more in absolute terms, smaller ones often achieve better compliance percentages.
Among 106 municipalities, Vinukonda topped the list with 94.47% efficiency, collecting Rs 6.31 crore against a demand of Rs 6.68 crore. This places it ahead of several municipalities and demonstrates the effectiveness of localised enforcement.
Tenali, often highlighted as a benchmark, achieved 89.02% efficiency, collecting Rs 20.41 crore against a demand of Rs 22.93 crore and ranked seventh. Tadigadapa followed closely with 88.85% efficiency, while Bhimavaram recorded 85.49% efficiency.
At the lower end, municipalities such as Alluru recorded only 45.47% efficiency, while Gudur (Tirupati Region) managed 58.11% efficiency and Kondapalli achieved 62.75% efficiency. These figures underscore the need for targeted interventions in weaker municipalities, particularly in addressing compliance gaps in vacant land and government property segments.
MA&UD Principal Secretary S Suresh Kumar noted that reforms such as GIS-based mapping and digital platforms have enhanced transparency and accountability, while field-level enforcement has increased compliance. He emphasised that ULBs should build on this momentum by addressing weaker segments and striving for above 90% efficiency, thereby ensuring stronger municipal finances and improved service delivery.
