Professional Tax Calculator
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State-Wise Professional Tax Rates in India (2024-25)
Professional Tax rates vary by state. Below is a summary of the maximum monthly PT applicable in each state that levies this tax.
| State | Max Monthly PT | Max Annual PT | Frequency | Notes |
|---|---|---|---|---|
| Maharashtra | Rs. 200 (Rs. 300 in Feb) | Rs. 2,500 | Monthly | February has higher deduction |
| Karnataka | Rs. 200 | Rs. 2,400 | Monthly | Slab-based on salary |
| Tamil Nadu | Rs. 208.33 (effective) | Rs. 2,500 | Half-Yearly | Paid as Rs. 1,250 every 6 months |
| Kerala | Rs. 208.33 (effective) | Rs. 2,500 | Half-Yearly | Paid as Rs. 1,250 every 6 months |
| Telangana | Rs. 200 | Rs. 2,400 | Monthly | Slab-based on salary |
| Andhra Pradesh | Rs. 200 | Rs. 2,400 | Monthly | Slab-based on salary |
| West Bengal | Rs. 200 | Rs. 2,400 | Monthly | Slab-based on salary |
| Gujarat | Rs. 200 | Rs. 2,400 | Monthly | Slab-based on salary |
| Madhya Pradesh | Rs. 208.33 (effective) | Rs. 2,500 | Monthly | Rs. 2,500 per annum for salary above Rs. 25,000 |
| Jharkhand | Rs. 208.33 (effective) | Rs. 2,500 | Monthly | Slab-based on salary |
| Assam | Rs. 208.33 (effective) | Rs. 2,500 | Monthly | Slab-based on salary |
| Odisha | Rs. 208.33 (effective) | Rs. 2,500 | Monthly | Slab-based on salary |
| Sikkim | Rs. 208.33 (effective) | Rs. 2,500 | Monthly | Slab-based on salary |
| Tripura | Rs. 208.33 (effective) | Rs. 2,500 | Monthly | Slab-based on salary |
| Meghalaya | Rs. 208.33 (effective) | Rs. 2,500 | Monthly | Slab-based on salary |
| Bihar | Rs. 208.33 (effective) | Rs. 2,500 | Monthly | Slab-based on salary |
| Chhattisgarh | Rs. 208.33 (effective) | Rs. 2,500 | Monthly | Slab-based on salary |
| Puducherry | Rs. 208.33 (effective) | Rs. 2,500 | Monthly | Applicable to salaried employees |
Understanding Professional Tax in India
Professional Tax is a state-level tax imposed on individuals earning income through employment, trade, or profession. It is governed by respective state municipal acts and is capped at Rs. 2,500 per annum under Article 276 of the Indian Constitution.
Who Pays Professional Tax?
Professional Tax applies to salaried employees, self-employed professionals (doctors, lawyers, CAs, architects), and traders. Employers are responsible for deducting PT from employee salaries and remitting it to the state government.
State-Wise Slab Rates
Each state defines its own slab structure for Professional Tax. The slabs are based on monthly gross salary. While the maximum annual PT is Rs. 2,500, many states have lower slabs for lower income brackets, with exemptions for those earning below a threshold.
PT and Income Tax Deduction
Professional Tax paid during the financial year is eligible for deduction under Section 16(iii) of the Income Tax Act. This reduces your gross salary for income tax computation, effectively lowering your overall tax burden.
Penalties for Non-Compliance
Failure to deduct or deposit Professional Tax can attract penalties and interest. Employers must register under the respective state's PT Act, deduct PT monthly, and file returns within prescribed timelines to avoid compliance issues.
Frequently Asked Questions
Professional Tax (PT) is a state-level tax levied on salaried individuals, professionals, and traders in India. It is deducted by the employer from the employee's salary and deposited with the respective state government. The maximum amount of Professional Tax that can be levied is capped at Rs. 2,500 per year as per Article 276 of the Indian Constitution.
Professional Tax is levied by several Indian states including Maharashtra, Karnataka, Tamil Nadu, Kerala, Telangana, Andhra Pradesh, West Bengal, Gujarat, Madhya Pradesh, Jharkhand, Assam, Odisha, Sikkim, Tripura, Meghalaya, Bihar, Chhattisgarh, and Puducherry. States like Delhi, Haryana, Uttar Pradesh, Rajasthan, Uttarakhand, and others do not levy Professional Tax.
Professional Tax is calculated based on the gross monthly salary of an employee and the slab rates defined by the respective state government. Each state has its own slab structure. For example, in Maharashtra, employees earning above Rs. 10,000 per month pay Rs. 200 per month (with Rs. 300 in February). The tax is deducted at source by the employer.
Yes, Professional Tax paid is allowed as a deduction under Section 16(iii) of the Income Tax Act, 1961. It is deducted from your gross salary while computing taxable income. This means the Professional Tax you pay reduces your overall tax liability.
As per Article 276 of the Indian Constitution, the maximum amount of Professional Tax that can be levied by any state is Rs. 2,500 per annum. No state can charge more than this amount per financial year. However, the actual amount depends on the state and your income slab.
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