Free tool
Professional Tax Calculator
Professional Tax is levied by state governments at slab rates. Pick the state, enter monthly salary; the calculator returns the deduction and the annual amount.
- Frequency
- monthly
- PT per month
- ₹ 200
- Monthly PT (deducted)
- ₹ 200
- Annual PT
- ₹ 2,400
A worked example, end to end
Scenario
An engineer in Karnataka with a monthly gross salary of ₹85,000.
Computation
- State. Karnataka, deducted monthly.
- Slab match. Salary > ₹25,000 falls in the top slab.
- Monthly PT. ₹200.
- Annual PT. ₹200 × 12 = ₹2,400.
- Effect on take-home. ₹85,000 minus ₹200 PT = ₹84,800 (before PF, ESI, IT).
- Income-tax angle. Section 16(iii) allows PT paid as a deduction from gross salary, lowering taxable income.
The same employee moved to Maharashtra would pay ₹2,500 (₹200 × 11 months + ₹300 in Feb). Moved to Delhi or Haryana: ₹0, as those states do not levy PT.
Free download
PT slabs for all states (PDF).
A one-page reference with PT slabs for every Indian state, frequency, registration codes (PTRC + PTEC), and which states do not levy PT. Useful for payroll teams running multi-state operations.
How Professional Tax works
Professional Tax (PT) is a state-level levy on income from salary, profession or trade. Article 276 of the Constitution permits it, capped at ₹2,500 per person per year. Each state writes its own slabs.
How it is collected
- Monthly states: employer deducts the slab amount from each payroll. Maharashtra adds ₹100 in February to round the annual to ₹2,500.
- Half-yearly states (Tamil Nadu, Kerala, Puducherry): the slab amount is per half-year. The calculator divides by 12 for a notional monthly figure.
- States without PT: Delhi, Haryana, UP, Rajasthan, Punjab, Uttarakhand, HP, J&K, Goa and most North-Eastern UTs do not levy PT.
Employer obligations
- Register as an employer (PT Registration Certificate / PTRC) and as a payer (Enrolment Certificate / PTEC).
- Deduct from payroll and deposit to the state treasury monthly or half-yearly as per state rules.
- File returns. Late payment attracts interest and penalty per the state PT Act.
PT paid is deductible from gross salary under Section 16(iii) of the Income Tax Act.
Professional Tax FAQ
Common questions.
Which states do not levy Professional Tax?
Delhi, Haryana, Uttar Pradesh, Rajasthan, Punjab, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Ladakh, Goa, Arunachal Pradesh, Manipur, Mizoram, Nagaland, Chandigarh, Andaman & Nicobar, Dadra & Nagar Haveli and Daman & Diu, and Lakshadweep do not levy PT.
What is the maximum Professional Tax per year?
₹2,500 per year per person, capped by Article 276(2) of the Constitution. States cannot exceed this. Most state slabs are designed to reach exactly ₹2,500 at the top, like Maharashtra (with the ₹300 February top-up) and Tamil Nadu.
How is PT deducted from salary?
Employers deduct PT from salary at the slab rate for each pay period. The amount appears on the salary slip under "Statutory deductions". For monthly states it is straightforward. For half-yearly states (TN, Kerala, Puducherry), employers typically deduct one-sixth each month and reconcile at the close of the half-year.
Are women employees exempt anywhere?
Gujarat exempts women employees from PT. A few states give partial relief in certain slabs but full exemption for women is specific to Gujarat as a policy choice.
What if my company has employees in multiple states?
Register and file PT in each state where you have a "place of business". The PT slab applied is the slab of the state where the employee is engaged, not where the company is headquartered. Multi-state PT is a common payroll-compliance gap.
Is Professional Tax deductible from income tax?
Yes. Under Section 16(iii) of the Income Tax Act, PT paid is fully deductible from gross salary while computing taxable income. The deduction is captured in Form 16 automatically by the employer.
What is the PT slab in Karnataka for FY 2025-26?
Three slabs: nil up to ₹14,999/month, ₹150 from ₹15,000 to ₹24,999, and ₹200 above ₹25,000. Deducted monthly. Karnataka returns are filed monthly with the State Commercial Tax Department.
What is the PT slab in Maharashtra?
₹0 up to ₹7,499, ₹175 from ₹7,500 to ₹9,999, ₹200 above ₹10,000 for 11 months, and ₹300 in February. The February top-up rounds the annual total to ₹2,500. Returns and payments are monthly.
Is PT applicable on freelancers and professionals?
Yes, separately. Self-employed professionals (CA, doctor, lawyer, freelancer) must enrol under PTEC and pay an annual PT based on their income. The PTEC slabs differ from the salaried (PTRC) slabs. Engaging a freelancer does NOT make the engaging company liable for the freelancer's PT.
What happens if PT is not deducted or paid on time?
State PT Acts impose interest (usually 1.25-2% per month) plus penalty (10-100% of the dues depending on the state). Officers can also pass best-judgment assessments and attach bank accounts. Most penalties are higher than the underlying tax, so timely filing matters.
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Multi-state payroll, in one place.
OneFinOps applies the right PT slab per employee state, deducts on payroll and tracks PTRC/PTEC filings across every state you operate in. The calculator is for one row; the platform is for the team.