What are Municipal Taxes? myITreturn Helpdesk Updated July 10, 2016 19:16 Follow It is the tax levied by local authorities in respect to your house property. House Property, Municipal tax, Income tax Here we explainrd explained the term municipal tax. Have you filed your Income-tax return yet? Click here to start now. Related articles Can I claim exemption for construction of a floor in the house u/s 54? Is joint owners of a house are separately entitled for maximum deduction? Income from House Property Comments 0 comments Please sign in to leave a comment.