Thiruvananthapuram: Kerala Finance Minister KN Balagopal, in his 2025-26 budget presentation on Friday, announced a 50% hike in land tax across all slabs, citing the need for additional revenue to support the state’s development.

"The value of land and its income-generating potential have increased manifold in the State in recent years owing to overall development. However, the basic tax levied on land remains quite nominal. To improve government revenue, the base tax rates in all existing slabs will be increased by 50%," Balagopal stated in his budget speech.

Under the revised tax structure, the rate in the lowest slab will rise from ₹5 per are per annum to ₹7.5 per are per annum, while the highest slab will see an increase from ₹30 per are per annum to ₹45 per are per annum.

The changes

Under the revised structure, landowners in panchayat areas will now pay ₹7.5 per are per annum for up to 8.1 ares, while those with land above this limit will pay ₹12 per are per annum. In municipal council areas, the tax has been raised to ₹15 per are per annum for up to 2.43 ares and ₹22.5 per are per annum for land above this extent. Similarly, in municipal corporation areas, the tax will increase to ₹30 per are per annum for up to 1.62 ares, while landowners with larger holdings will now pay ₹45 per are per annum.