Professional Tax in India — State-Wise Slabs, Due Dates & Registration (2025-26)
Professional Tax (PT) is a small state-level tax on salaries and professions, capped by the Constitution at ₹2,500 per year. Because every state sets its own slabs, thresholds and payment frequency, the same salary can attract different PT in Maharashtra, Karnataka and West Bengal — and several states charge none at all. This guide gives the current state-wise slabs, the due dates, and how employer registration works.
To get the exact figure for any state and salary, use our professional tax state-wise finder.
What is professional tax?
Professional Tax is levied by state governments under Article 276 of the Constitution on income from salary, profession, trade or employment. For salaried employees the employer deducts it monthly and deposits it with the state; self-employed professionals pay it themselves. The maximum any individual can be charged is ₹2,500 per year — no state can exceed this.
State-wise professional tax slabs (FY 2025-26)
The most-asked states, on a monthly basis:
- Maharashtra: nil up to ₹7,500; ₹175 for ₹7,501–₹10,000; ₹200 above ₹10,000 (₹300 in February). Women earning up to ₹25,000/month are exempt.
- Karnataka: nil up to ₹24,999; ₹200 above ₹25,000. The exemption threshold was raised from ₹15,000 to ₹25,000 with effect from 1 April 2025.
- West Bengal: nil up to ₹10,000, then ₹110 / ₹130 / ₹150 / ₹200 across higher slabs.
- Telangana & Andhra Pradesh: nil up to ₹15,000; ₹150 for ₹15,001–₹20,000; ₹200 above ₹20,000.
- Gujarat: nil up to ₹12,000; ₹200 above ₹12,000.
Tamil Nadu and Kerala assess PT half-yearly and Madhya Pradesh annually — the state finder handles those automatically.
States with no professional tax
Several states and union territories do not levy PT at all, so no deduction is needed for employees based there — including Delhi, Haryana, Uttar Pradesh, Uttarakhand, Rajasthan and Himachal Pradesh, along with most union territories. Note that if an employee works in a PT state (say a remote employee in Maharashtra), registration in that state is required even if your head office is in a non-PT state.
PTRC vs PTEC — who deposits it
Employers deduct PT from employee salaries and deposit it under a Professional Tax Registration Certificate (PTRC). The business or self-employed professional pays its own PT under a Professional Tax Enrolment Certificate (PTEC). Most companies need both. Employers must register within 30 days of becoming liable; failure attracts penalties and interest that vary by state.
Is professional tax deductible in income tax?
Yes. PT paid by an employee is deductible under Section 16(iii) from gross salary before computing income under “Salaries” (up to the ₹2,500 annual limit), under the old tax regime. Employees should check that the deduction is correctly reflected in Form 16.
How TAXAJ helps
TAXAJ handles PT registration (PTRC and PTEC), monthly and half-yearly return filing, and full payroll compliance for employers across all states. Start with the exact figure on our professional tax finder.
Frequently asked questions
How much professional tax is deducted in Maharashtra?
Employees earning above ₹10,000/month pay ₹200 (₹300 in February) for an annual total of ₹2,500; ₹7,501–₹10,000 pay ₹175; up to ₹7,500 is exempt. Women earning up to ₹25,000/month are fully exempt.
How much is professional tax in Karnataka?
Only salaries of ₹25,000/month and above are taxed, at ₹200/month (₹300 in February). The exemption threshold rose from ₹15,000 to ₹25,000 with effect from 1 April 2025, so salaries below ₹25,000 are exempt.
Which states have no professional tax?
Delhi, Haryana, Uttar Pradesh, Uttarakhand, Rajasthan, Himachal Pradesh and most union territories do not levy professional tax.
Who deposits professional tax — employer or employee?
For salaried staff the employer deducts and deposits it under a PTRC; self-employed professionals and businesses pay their own under a PTEC.
TAXAJ manages professional tax and payroll compliance across India. Find your state’s PT or talk to us about payroll.
