Professional tax in India, state by state
Professional tax is a tax on employment and trade that each state sets for itself, capped at ₹2,500 a person a year under Article 276. Some states levy nothing. This directory shows which states do and don't, who pays, and the sourced slabs for the states we could confirm. Checked on October 28, 2026; slabs change by notification, so verify on the state portal before you deduct.
How professional tax works
- A state levy, not a central one. Each state (and a few UTs) has its own Act, slabs and due dates. GST and income tax are separate from it.
- Capped at ₹2,500 a year. Article 276 of the Constitution limits total PT on any one person to ₹2,500 in a financial year.
- Employer deducts, or you pay direct. Employers deduct PT from salary and deposit it under a PTRC; businesses, professionals and traders pay their own under a PTEC.
- Follows the place of work. Liability depends on the state where the work is performed — not where the employee lives or the company is registered.
- Deductible from salary income. PT paid is allowed as a deduction when computing salary income under the old regime of the Income-tax Act.
States with a sourced slab
Open a state for its slab, filing frequency and the collecting authority.
Professional tax in Maharashtra
Monthly slab · up to ₹2,500 a year
Professional tax in Karnataka
Monthly slab · up to ₹2,500 a year
Professional tax in Telangana
Monthly slab · up to ₹2,500 a year
Professional tax in Andhra Pradesh
Monthly slab · up to ₹2,500 a year
Professional tax in Gujarat
Monthly slab · up to ₹2,400 a year
Professional tax in Tamil Nadu
Half-yearly slab · up to ₹2,500 a year
Other states and UTs that levy professional tax
These levy PT too, but their current schedule is not reproduced here — check the state's commercial-tax portal for the slab in force.
- West Bengal — Schedule reported under revision from October 2026 — check WBComTax.
- Madhya Pradesh
- Kerala — Levied half-yearly by local bodies.
- Bihar
- Jharkhand
- Chhattisgarh
- Assam
- Odisha — A repeal was reported effective 2026 — check the state portal.
- Meghalaya
- Sikkim
- Tripura
- Nagaland
- Manipur
- Mizoram
- Puducherry — Union territory that levies PT.
- Punjab — Levied as the Punjab State Development Tax (₹200 a month) rather than under a profession-tax Act.
States and UTs that do not levy professional tax
Consistently reported as having no professional tax, so there is nothing to deduct on work performed there:
- Delhi
- Uttar Pradesh
- Haryana
- Rajasthan
- Uttarakhand
- Himachal Pradesh
- Jammu & Kashmir
- Most union territories — Including Chandigarh, Andaman & Nicobar Islands, Lakshadweep, and Dadra & Nagar Haveli and Daman & Diu.
A few states (for example Goa and some north-eastern states) are reported inconsistently; confirm those directly with the state before concluding there is no liability.
Running payroll across states
If you employ people in more than one state, you deal with several PT regimes at once — different slabs, different return frequencies, and some states with none. That reconciliation is payroll work: it is handled in HelloTime, which deducts the right PT per state alongside PF, ESI and TDS and posts the entries into your HelloBooks ledgers.
Frequently asked questions
What is professional tax?
A tax that states and some union territories levy on income from a profession, trade, calling or employment. It is not an income tax and is separate from GST. Under Article 276 of the Constitution, a state cannot charge any one person more than ₹2,500 in a financial year. Where you owe it, the amount paid is deductible from salary income under the Income-tax Act.
Which states do not have professional tax?
Several states and most union territories levy no professional tax — consistently including Delhi, Uttar Pradesh, Haryana, Rajasthan, Uttarakhand, Himachal Pradesh and Jammu & Kashmir. If the work is performed in one of these, there is no PT on that salary, wherever the employer is based.
Who deducts and pays professional tax?
An employer deducts PT from each employee's salary and deposits it under a PTRC (Professional Tax Registration Certificate). A business, professional or trader pays their own PT under a PTEC (Professional Tax Enrolment Certificate). Liability follows the state where the work is performed, not where the person lives or the company is headquartered.
How much professional tax will I pay?
It depends on the state and your income slab, up to the ₹2,500 annual ceiling. For example, Maharashtra charges up to ₹200 a month (₹300 in February) above ₹10,000 of monthly salary; Karnataka charges ₹200 a month at ₹25,000 and above. Open your state's page for its slab, and always confirm on the state portal because slabs change by notification.
Is professional tax the same in every state?
No. Unlike GST, professional tax is a state subject, so the slabs, thresholds, filing frequency and due dates differ from state to state, and the rate for the same salary can be different in two states. Tamil Nadu and Kerala even levy it half-yearly through local bodies. Never apply one state's slab to another.
Sources
Professional tax is a state levy and the slabs are amended by notification. Every figure here was checked on October 28, 2026; confirm the current slab on the state's own commercial-tax portal before you deduct. This is general information, not tax advice.
- Constitution of India, Article 276 — ₹2,500 annual ceiling on taxes on professions, trades and employment
- Maharashtra GST Department (mahagst.gov.in)
- Commercial Taxes Department, Karnataka (gst.kar.nic.in)
- Commercial Taxes Department, Telangana (tgct.gov.in)
- Commercial Taxes Department, Andhra Pradesh (apct.gov.in)
- Commercial Tax Department, Gujarat (commercialtax.gujarat.gov.in)
- Greater Chennai Corporation (chennaicorporation.gov.in)
Professional tax runs in payroll
PT is deducted from salary and deposited with the state, alongside PF, ESI and TDS. That is payroll — handled in HelloTime, the payroll & attendance product in the HelloBooks suite, with the entries posting straight into your books. HelloBooks itself is the accounting and GST software; it does not file professional tax for you.
Related: All states & UTs · Take-home salary calculator · Talk to a human