Starting April 1, 2026, people running businesses in Patna and other municipal areas across Bihar will have to pay more property tax. The Urban Development and Housing Department has decided to increase the tax for non-residential buildings after a gap of 33 years. While commercial rates are going up, Patna Mayor Sita Sahu has clarified that there will be no increase in tax for residential or domestic properties.
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Which businesses will pay double tax and who is exempt?
The new tax structure is based on the type and size of the commercial establishment. The rates have been revised under the Bihar Municipal Act 2007 using the Unit Area Method. Large establishments and financial institutions will bear the highest increase, while small shopkeepers and religious places have been kept out of this new tax burden.
| Category of Property | Proposed Tax Increase |
|---|---|
| Hotels, Banks, Private Hospitals, Gyms, Banquet Halls | 2 Times (Double) |
| Shopping Malls, Cinemas, Coaching Centers, Private Schools | 1.5 Times |
| Small Shops (less than 500 sq ft) | No Increase |
| Cottage Industries and Warehouses below 1000 sq ft | No Increase |
| Cultural and Religious Institutions | Exempted |
Deadline for One Time Settlement and pending dues
The Patna Municipal Corporation is urging residents to clear their old dues before the new rates kick in. The One Time Settlement (OTS) scheme is active until March 31, 2026, offering a 100 percent waiver on interest and penalties for those who pay the principal amount. To facilitate this, tax collection counters are staying open from 7 a.m. to 9 p.m. daily. Officials have stated that strict action like freezing bank accounts will be taken against those who do not settle their pending taxes before the deadline.
