Professional Tax
Professional Tax in Bihar — Slabs on Annual Income
Bihar's professional tax is on annual income: nil up to ₹3 lakh, then ₹1,000, ₹2,000 or ₹2,500 a year, paid once a year rather than monthly.
Bihar levies professional tax under the Bihar Tax on Professions, Trades, Callings and Employments Act, 2011. It is based on your annual income, not a monthly payslip bracket. Up to ₹3,00,000 a year, which is about ₹25,000 a month, nothing is due.
Above that it is a single yearly amount: ₹1,000 for income up to ₹5,00,000, ₹2,000 for income up to ₹10,00,000, and ₹2,500 above ₹10,00,000, which is the constitutional maximum under Article 276(2). The calculator shows a monthly equivalent (annual divided by 12) so it fits the same layout as other states, but the tax is paid as a yearly sum.
Employers deduct it from salary and deposit it with the state, and self-employed people pay it themselves. Payment and the annual return fall in November. Dealers and traders are charged on turnover instead, with different slabs that this calculator does not cover.
Worked example
A standard month works out to ₹83.33. A ₹40,000-a-month salary is ₹4,80,000 a year, which falls in the ₹3,00,001–₹5,00,000 slab: ₹1,000 for the year, about ₹83 a month. A ₹90,000-a-month salary is ₹10,80,000 a year, so ₹2,500 for the year.
To see how Bihar compares with other states, including what the same salary costs in each, read our state-wise professional tax slabs guide.
Frequently asked questions
What is the professional tax slab in Bihar in 2026?
On annual income: nil up to ₹3,00,000, ₹1,000 from ₹3,00,001 to ₹5,00,000, ₹2,000 from ₹5,00,001 to ₹10,00,000, and ₹2,500 above ₹10,00,000. These are yearly amounts.
Is Bihar's professional tax deducted monthly?
The tax itself is a yearly amount, due in November, not a monthly slab like Karnataka's. Some employers spread the deduction across the months, so check how your payroll treats it. The monthly figure in the calculator is just the yearly amount divided by 12.
Does Bihar levy professional tax on traders and businesses too?
Yes, but on annual turnover, not income, with its own slabs: nil up to ₹10,00,000 and up to ₹2,500 above ₹40,00,000. This calculator covers salaried income only.
Is the ₹3,00,000 limit gross or taxable income?
It is tested on annual income, which for employees means salary. This calculator uses gross monthly salary multiplied by 12. If you are near the limit, check the exact heads counted as salary with your employer or the Bihar commercial taxes department.