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If you own a property in Bihar, knowing how property tax works is important. It serves as a major revenue source for local municipal authorities, helping fund essential public services.
This tax applies to various properties, including homes, commercial spaces, and vacant land. The amount you owe is determined by factors like location, purpose, and building structure.
In Bihar, municipal corporations handle property tax collection. The tax is typically calculated based on the estimated rental value of the property.
Property tax in Bihar is a tax collected by municipal corporations on real estate in Bihar. You are required to pay this tax to your local municipal body. The Bihar Urban Development and Housing Department oversees this process.
The tax amount varies based on factors like location, property type, and municipal regulations.
In Bihar, property tax is calculated based on the Annual Rental Value (ARV) method. The tax amount depends on how much rent your property could generate in a year if rented out.
The formula used is:
Property Tax = ARV × Tax Rate
The standard tax rate for residential properties is 9% of ARV, but rates may vary for commercial properties.
The calculation method differs for various types of properties, such as constructed buildings, vacant land, and government properties.
Property Tax Calculation for Different Property Types
Constructed Properties (Residential/Commercial/Apartments)
Carpet Area is calculated using a percentage of the built-up area (70% for residential, 80% for commercial).
ARV Calculation: Carpet Area × Occupancy Factor × ARV Factor = ARV
Tax Calculation: ARV × 9%
Vacant Land
Tax Formula: Property Tax = Vacant Land Area (sq. ft) × ARV Factor as per property tax rules
Vacant Land with Partial Construction (Less than 70% Built-up Area)
Tax on Constructed Area: Same as constructed property formula
Tax on Vacant Land: (Vacant Land Area - Constructed Area × 1.43) × Vacant Land Road Factor
Government Properties
Instead of property tax, a service charge is levied at 75% of the total property tax
If you own a property within the municipal limits of Bihar, you are required to pay property tax. This applies to residential homes, commercial buildings, and vacant land.
To pay property tax online, visit your city’s municipal corporation portal. If you are in Patna, follow these steps:
Visit Patna Municipal Corporation website https://pmcptax.bihar.gov.in/pmc/public
Click on ‘Pay Property Tax’
Search for your property using any of the following details:
Property No. / Old PID
SAS No. (application number)
Circle Name
Ward No.
New Holding No. / Old Holding No.
Owner Name
Once you find your property details, follow the instructions to complete the payment
Note: For other municipal corporations in Bihar, check their respective website or visit the Bihar Urban Development and Housing Department portal https://state.bihar.gov.in/urban/
If you prefer offline payment, you can visit:
Municipal Corporation Office
Make your payment at the designated tax counters in your city's municipal office
Authorised Banks
Some banks accept property tax payments—check with your local bank
Revenue Office
You can pay your property tax at the local Revenue Department office
Certain properties in Bihar qualify for exemptions or concessions under the Bihar Municipal Act, 2007. These include:
Religious and Public Properties
Properties owned by the Devasthan Department of the Bihar government
Buildings and land used for public worship or other public purposes
Land designated for the disposal of dead bodies
Government-owned Properties
Non-commercial offices of the State and Central Government are exempt from property tax
However, these government properties must pay a Service Charge, which is 75% of the applicable property tax
Religious Institutions
Properties exclusively used for religious purposes are fully exempt from property tax
The property tax amount is calculated based on the Annual Rental Value (ARV) of the property, which represents the estimated yearly rent it could generate.
With an evolution in the tax structure, tax rates in Bihar have also been revised too. Here's the breakdown:
Year-wise Property Tax Rates in Bihar
Here is the detailed tax structure followed in Bihar:
Tax Component |
Before 1993 |
1993 – (2012-13) |
Since 2013-14 |
|---|---|---|---|
Property Tax |
12.50% |
2.50% |
9% (Standalone Property Tax) |
Latrine Tax |
10.00% |
2.00% |
- |
Water Tax |
10.00% |
2.00% |
- |
Education Cess |
5.00% |
1.25% |
- |
Health Tax |
6.25% |
1.25% |
- |
Since 2013-14, the previous individual components (such as Water Tax, Latrine Tax, Education Cess, and Health Tax) have been merged into a single Property Tax at a 9% rate.
Current Property Tax Rates by Property Type
Here is the detailed property tax structure based on the type of property:
Property Type |
Tax Rate |
|---|---|
Residential |
9% of ARV |
Commercial |
15% of ARV |
Industrial |
3% of ARV |
Vacant Land |
2% of ARV |
Note: It is recommended to check the rates with the local bodies in your region.
If you need assistance with property tax-related concerns, you can reach out to the relevant municipal authorities.
Here are the key contact details for major cities in Bihar:
Patna Municipal Corporation
Toll-free Helpline: 155 304
Grievance Redressal (Combat Cell): 0612-2200634
WhatsApp/Telegram Support: 9472223909
Head Office Address: Second Floor, Block-C, Maurya Lok Complex, Budh Marg, Patna, Bihar – 800001
Other Major Municipal Corporations
Gaya Municipal Corporation: 0631-2200467
Bhagalpur Municipal Corporation: 0641-2400954
Muzaffarpur Municipal Corporation: 0621-2240054
Purnia Municipal Corporation: 06454-232220
Understanding property tax in Bihar is crucial for property owners to ensure timely payments and compliance with local regulations. The tax system is designed to fund essential public services, and its calculation is based on the Annual Rental Value (ARV) of the property. With online payment facilities and dedicated municipal helplines, property tax payment has become more accessible.
Yes, municipal corporations in Bihar have their own online portals for property tax payments. Property owners can visit the respective municipal website to pay their taxes online. To find the suitable portal, you can check the Bihar Urban Development and Housing Department website https://state.bihar.gov.in/urban/
If a property owner does not complete the self-assessment of their holding within the given timeframe, a fine of ₹2,000 may be imposed for residential holdings and ₹5,000 for other properties.
You can check your property tax details by searching for your property on your city’s municipal corporation portal. Once you find your property, all relevant details will be available online.
Yes, property tax can be paid offline. You can visit the nearest municipal corporation office and follow the instructions given by the concerned representative.
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