What is Professional Tax?
Professional Tax (PT) is a state-level tax levied on individuals earning income from salary, profession, trade, or business. It is governed by Article 276 of the Indian Constitution, which caps the maximum professional tax at Rs. 2,500 per year. Not all states in India levy professional tax — only specific states and union territories impose it.
Employers are responsible for deducting professional tax from employees’ salaries and remitting it to the state government. Self-employed professionals must pay it directly.
States That Levy Professional Tax in India
As of 2026, the following states and union territories levy professional tax: Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat, Madhya Pradesh, Kerala, Assam, Meghalaya, Tripura, Odisha, Jharkhand, Bihar, Sikkim, Manipur, and Mizoram.
States like Delhi, Uttar Pradesh, Rajasthan, Haryana, Punjab, and Uttarakhand do not levy professional tax.
Professional Tax Slab Rates — State-Wise (2026)
Maharashtra Professional Tax
| Monthly Salary (₹) | PT per Month (₹) |
|---|---|
| Up to 7,500 | Nil |
| 7,501 to 10,000 | 175 |
| Above 10,000 | 200 (300 in Feb) |
Maximum annual PT: Rs. 2,500. Note: In February, PT is Rs. 300 to make the annual total Rs. 2,500.
Karnataka Professional Tax
| Monthly Salary (₹) | PT per Month (₹) |
|---|---|
| Up to 15,000 | Nil |
| 15,001 to 25,000 | 150 |
| Above 25,000 | 200 |
West Bengal Professional Tax
| Monthly Salary (₹) | PT per Month (₹) |
|---|---|
| Up to 10,000 | Nil |
| 10,001 to 15,000 | 110 |
| 15,001 to 25,000 | 130 |
| 25,001 to 40,000 | 150 |
| Above 40,000 | 200 |
Andhra Pradesh Professional Tax
| Monthly Salary (₹) | PT per Month (₹) |
|---|---|
| Up to 15,000 | Nil |
| 15,001 to 20,000 | 150 |
| Above 20,000 | 200 |
Telangana Professional Tax
| Monthly Salary (₹) | PT per Month (₹) |
|---|---|
| Up to 15,000 | Nil |
| 15,001 to 20,000 | 150 |
| Above 20,000 | 200 |
Tamil Nadu Professional Tax
| Half-Yearly Income (₹) | PT per Half-Year (₹) |
|---|---|
| Up to 21,000 | Nil |
| 21,001 to 30,000 | 135 |
| 30,001 to 45,000 | 315 |
| 45,001 to 60,000 | 690 |
| 60,001 to 75,000 | 1,025 |
| Above 75,000 | 1,250 |
Note: Tamil Nadu levies PT on a half-yearly basis (April-September and October-March).
Gujarat Professional Tax
| Monthly Salary (₹) | PT per Month (₹) |
|---|---|
| Up to 5,999 | Nil |
| 6,000 to 8,999 | 80 |
| 9,000 to 11,999 | 150 |
| Above 12,000 | 200 |
Madhya Pradesh Professional Tax
| Monthly Salary (₹) | PT per Month (₹) |
|---|---|
| Up to 18,750 | Nil |
| 18,751 to 25,000 | 125 |
| Above 25,000 | 208 (Rs. 2,500/year) |
Kerala Professional Tax
| Half-Yearly Income (₹) | PT per Half-Year (₹) |
|---|---|
| Up to 11,999 | Nil |
| 12,000 to 17,999 | 120 |
| 18,000 to 29,999 | 180 |
| 30,000 to 44,999 | 300 |
| 45,000 to 59,999 | 450 |
| 60,000 to 74,999 | 600 |
| 75,000 to 99,999 | 750 |
| 1,00,000 to 1,24,999 | 1,000 |
| Above 1,25,000 | 1,250 |
Professional Tax Compliance for Employers
- Registration: Employers must register for PT with the respective state’s tax authority within 30 days of hiring employees
- Deduction: PT must be deducted from employees’ salary every month
- Payment: Deducted PT must be remitted to the state government by the prescribed due date (usually by the end of the following month)
- Returns: Annual/periodic PT returns must be filed with the state authority
- Penalty: Late payment attracts interest (typically 1-2% per month) and penalties vary by state
Professional Tax Deduction in Income Tax
Professional tax paid is fully deductible under Section 16(iii) of the Income Tax Act, both under Old and New Tax Regimes. This means the Rs. 2,500 maximum PT reduces your taxable income. The deduction is available irrespective of which tax regime you choose.
How INDPayroll Handles Professional Tax
Managing professional tax across multiple states with different slabs is complex, especially for companies with employees in multiple locations. INDPayroll simplifies this:
- Auto-detect state: PT slab is automatically applied based on the employee’s work location
- Multi-state support: Handle employees across Maharashtra, Karnataka, West Bengal, and all PT-levying states from one dashboard
- Automatic calculation: PT is calculated every pay cycle based on the latest state slabs
- Return filing support: Generate PT return data in the format required by each state
- Rate updates: Slab rates are updated whenever states revise their PT schedules
Try INDPayroll Free → Auto-calculate Professional Tax for employees across all Indian states.
Frequently Asked Questions
Is Professional Tax the same in all states?
No. Each state sets its own PT slab rates and rules. The only common limit is the constitutional cap of Rs. 2,500 per year. Some states like Tamil Nadu and Kerala levy PT on a half-yearly basis, while others deduct monthly.
Do freelancers and self-employed professionals need to pay PT?
Yes. Self-employed individuals, freelancers, doctors, lawyers, CAs, and other professionals must register and pay PT directly to the state government if they practice in a state that levies PT.
Can I claim Professional Tax refund?
PT is generally non-refundable. However, if PT has been incorrectly deducted (e.g., deducted in a non-PT state), you can apply for a refund from the concerned state authority.
What happens if my employer doesn’t deduct PT?
The employer faces penalties and interest for non-compliance. The liability remains on the employer, not the employee. However, it’s good practice to verify PT deduction on your salary slip.
