Bihar Announces Sharp Property Tax Hike for Commercial Units From April 1

Brief By Newsbrief / 9:52 AM on 01 Apr 2026

The Bihar government has announced a significant increase in property taxes for commercial establishments, effective April 1, under new guidelines issued by the Urban Development Department. The revised structure will require businesses such as hotels, malls, showrooms, restaurants, and warehouses to pay between 1.5 to 2 times their existing tax, depending on size and usage.

Officials stated that the move aims to boost revenue generation for urban local bodies and strengthen infrastructure and public services. The changes will apply across municipal areas, including Patna, marking the first major revision in non-residential property taxes in over three decades under the Bihar Municipal Act, 2007.

Larger commercial properties, especially those between 1,000 and 3,000 square feet, will see the highest increase, while smaller establishments and non-commercial government offices will remain unaffected. Authorities maintain that the reform reflects growing commercial activity and evolving economic conditions in the state.