Size of physical address, m = 36
$C = S \times E \times B$
where $C$ is cache size,
$S = 2^s$ is the number of sets,
$E$ is the number of cache lines per set, and
$B = 2^b$ is the block size in bytes.
It is given that, $C = 256\ \rm{KB} = 2^{18}\ \rm{bytes}$ and $E = 16$.
So, $2^{18} = 2^s * 2^4 * 2^b$
or, $s + b = 14$.
Therefore, the number of tag bits will $m - (s+b) = 36 - 14 = 22$.