Professional tax in Bihar: slabs, rules and deadlines for 2026
Bihar's professional tax law is one of the newest in India, enacted in 2011, and it was drafted in annual terms from the start. That single design choice explains most of what employers find unusual about it.
| Monthly salary | Professional tax |
|---|---|
| Up to ₹25,000 / month | Nil |
| ₹25,001 – ₹41,666 / month | ₹83/month |
| ₹41,667 – ₹83,333 / month | ₹167/month |
| Above ₹83,333 / month | ₹208/month |
Bihar's slabs are annual (nil to ₹3 lakh/yr; ₹1,000/yr to ₹5 lakh; ₹2,000/yr to ₹10 lakh; ₹2,500/yr above). Monthly figures are annual ÷ 12.
The law that applies in Bihar
Professional tax in Bihar is levied under the Bihar Tax on Professions, Trades, Callings and Employments Act, 2011, administered by the Bihar Commercial Taxes Department. Article 276 of the Constitution caps what any state may charge a person under this head at ₹2,500 a year, which is why no slab anywhere in India exceeds that figure.
Who must register in Bihar
Employers register under the 2011 Act and deduct from employees; persons in a profession or trade on their own account enrol and pay directly. Registration is through the Commercial Taxes Department.
When it must be paid
Bihar frames the liability annually rather than monthly. Employers should confirm the remittance cycle attaching to their registration — annual payment is common — rather than assuming the monthly pattern used in Karnataka or West Bengal.
A high entry threshold
Bihar's first band begins at ₹3 lakh of annual income — about ₹25,000 a month. That is among the highest entry points in the country, comparable to Karnataka's ₹25,000 and well above West Bengal's ₹10,000 or Kerala's ₹2,000.
The bands then run ₹1,000 a year to ₹5 lakh, ₹2,000 a year to ₹10 lakh, and ₹2,500 above — which divided by twelve gives the ₹83, ₹167 and ₹208 monthly figures in the table. A substantial part of a Bihar payroll will have no professional tax deduction at all, and a payroll configured with another state's thresholds will over-deduct from most of the workforce.
Who is exempt in Bihar
- Anyone with annual income below the lowest notified band — ₹3 lakh a year, which is why the monthly table shows nothing until ₹25,000.
- Senior citizens.
- Persons with disabilities.
If you pay late
Interest applies to late payment, with penalties for failure to register or file. As the liability is annual, an unregistered employer accumulates a full year of exposure at a time.
How it affects your income tax
Professional tax paid is fully deductible from salary income under Section 16(iii) of the Income-tax Act, in both the old and the new regime. Your employer normally accounts for it when computing TDS, so it reduces taxable salary rather than being claimed separately. If you are enrolled and pay directly, keep the challans — the deduction is still available to you.
On a payslip the line usually reads "PT", "Prof. Tax" or "Professional Tax", and sits with provident fund and income tax under deductions. Our free salary slip generator includes it automatically for Bihar.
Common questions about professional tax in Bihar
At what salary does professional tax start in Bihar?
Around ₹25,000 a month, corresponding to the annual threshold of ₹3 lakh. Below that there is no deduction.
Why is my Bihar deduction ₹83 a month?
Because the Act notifies ₹1,000 a year for that band, and payroll divides it by twelve.
What is the maximum professional tax in Bihar?
₹2,500 a year for income above ₹10 lakh — the constitutional ceiling.
Which Act governs professional tax in Bihar?
The Bihar Tax on Professions, Trades, Callings and Employments Act, 2011.
Professional tax in other states
Slabs, thresholds and filing cycles differ substantially between states. If you employ people in more than one, you will generally need a registration in each.
The maths behind this calculator is open source and tested — try it in the interactive reference, where the edge cases most calculators get wrong are worked through with real numbers, or read the source on GitHub.