The professional tax rate varies from one state to another. Some states calculate PT from monthly salary, while others use annual or half-yearly salary slabs. State governments set their own professional tax slabs, salary thresholds, payment frequency, and compliance requirements. Article 276 of the Constitution allows states to levy professional tax, subject to a maximum annual limit of ₹2,500 per person.
Professional tax applies to salaried employees, professionals, traders, freelancers, and other eligible taxpayers in states that levy it. Employers generally deduct professional tax from employee salaries and deposit it with the appropriate authority. Self-employed professionals and other taxpayers may have separate registration and payment requirements.
This guide explains the professional tax slab rates in India for FY 2026-27, including state-wise salary limits, applicable deductions, and important rules.
2026 update: Karnataka introduced a revised employee slab effective 1 April 2025. Employees earning up to ₹25,000 per month are not liable, while those earning above ₹25,000 pay ₹200 per month, except February, when the deduction is ₹300. Maharashtra also revised certain professional tax compliance due dates through a February 2026 notification.
How Professional Tax Works: Key Rules for Employers
Professional tax is not calculated in the same way in every state. Some states use monthly salary, while others use annual or half-yearly income. Some also have separate rules for professionals, businesses, and other taxpayer categories.
Employers and other taxpayers may need a Professional Tax Registration Certificate (PTRC), Professional Tax Enrolment Certificate (PTEC), or both, depending on the applicable state law and taxpayer category. Registration deadlines also vary by state, so businesses should follow the deadline prescribed by the relevant state authority rather than applying a general 30-day rule.
Employers deduct professional tax from employee salaries according to the applicable state slab and deposit it with the concerned authority. The payment deadline and return requirements vary by state and registration type.
For example, if a state applies ₹200 monthly PT to an employee earning above its prescribed salary threshold, the employer deducts ₹200 from that month’s salary and deposits it within the applicable deadline.
For a quick calculation based on the applicable state slab, use the Professional Tax Calculator.
Professional tax paid by an employee can qualify as a deduction from salary income under the applicable income-tax provisions. For Tax Year 2026-27, taxpayers should refer to the Income-tax Act, 2025, and applicable rules.
State-Wise Professional Tax Salary Slab Rates for Employees in FY 2026-27
Professional tax does not follow one common rate across India. Each state or applicable local authority that levies PT sets its own tax slab, salary threshold, and payment cycle. Some states calculate PT every month, while others use annual or half-yearly income.
The following state-wise professional tax chart covers the major PT schedules relevant to salaried employees. Check the applicable state rules before making payroll deductions because the same salary can attract different PT in different states:
1. Professional Tax Slab in Andhra Pradesh and Telangana
Andhra Pradesh and Telangana apply professional tax to salaried and wage earners according to their monthly gross salary. Both states follow the same three-level structure:
| Monthly Gross Salary | Professional Tax |
| Up to ₹15,000 | Nil |
| ₹15,001 to ₹20,000 | ₹150 per month |
| Above ₹20,000 | ₹200 per month |
The Commercial Taxes Department, Government of Andhra Pradesh, administers professional tax and publishes the applicable rules and rates. The Revenue (Commercial Taxes) Department, Government of Telangana, performs the same function for Telangana.
An employee earning above ₹20,000 generally pays ₹200 per month, for an annual liability of ₹2,400.
2. Assam Professional Tax Rates
Assam determines professional tax from the employee’s monthly salary. The state schedule provides a nil threshold followed by two fixed deduction levels:
| Monthly Salary | Professional Tax |
| Up to ₹10,000 | Nil |
| ₹10,000 to 15,000 | ₹150 per month |
| ₹15,001 to ₹24,999 | ₹180 per month |
| ₹25,000 and above | ₹208 per month |
The upper slab produces an annual deduction of ₹2,496. Employers should use the current Assam schedule when configuring payroll because the state has revised its professional tax structure in recent years.
The Commissionerate of Taxes, Government of Assam, administers professional tax and publishes the applicable rules, rates, and notifications.
3. Bihar Professional Tax Salary Slab
Bihar uses annual salary or income to determine professional tax. Therefore, these amounts should not be described as monthly PT deductions:
| Annual Salary | Professional Tax |
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹5,00,000 | ₹1,000 per year |
| ₹5,00,001 to ₹10,00,000 | ₹2,000 per year |
| Above ₹10,00,000 | ₹2,500 per year |
This annual basis is important for payroll teams. Applying ₹1,000, ₹2,000, or ₹2,500 as a monthly deduction would overstate the employee’s professional tax liability.
The Commercial Taxes Department, Government of Bihar, administers professional tax and publishes the applicable rules and rates.
4. Professional Tax Slab in Gujarat
Gujarat uses monthly salary to determine the professional tax deduction for salaried employees:
| Monthly Salary | Professional Tax |
| Up to ₹12,000 | Nil |
| Above ₹12,000 | ₹200 per month |
An employee crossing the ₹12,000 monthly threshold falls into the applicable ₹200 slab. The Department of Gujarat State Tax, Government of Gujarat, administers professional tax and publishes the applicable rules and rates.
5. Jharkhand Professional Tax Rates
Jharkhand’s salary-based professional tax schedule uses annual income bands. The amounts below represent the annual liability rather than monthly deductions:
| Annual Salary | Professional Tax |
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹5,00,000 | ₹1,200 per year |
| ₹5,00,001 to ₹8,00,000 | ₹1,800 per year |
| ₹8,00,001 to ₹10,00,000 | ₹2,100 per year |
| Above ₹10,00,000 | ₹2,500 per year |
Employers should therefore avoid treating the figures in this table as monthly salary deductions. The Department of Commercial Taxes, Government of Jharkhand, administers professional tax and publishes the applicable rules, rates, and notifications.
6. Karnataka Professional Tax Slab
The professional tax slab in Karnataka uses monthly gross salary for employees. The current employee threshold is ₹25,000 per month:
| Monthly Gross Salary | Professional Tax |
| Below ₹25,000 | Nil |
| ₹25,000 and above | ₹200 per month |
Karnataka collects ₹300 instead of ₹200 in February for employees in the taxable slab. This brings the annual deduction to ₹2,500.
The Karnataka schedule for salaried employees differs from the rates applicable to other classes of taxpayers, so businesses should select the correct category when calculating PT. The Commercial Taxes Department, Government of Karnataka, administers professional tax and publishes the applicable rules and rates.
7. Kerala Professional Tax Slab
Kerala follows a half-yearly salary professional tax system. The applicable amount depends on the salary earned during the relevant six-month period:
| Half-Yearly Salary | Professional Tax |
| Up to ₹11,999 | Nil |
| ₹12,000 to ₹17,999 | ₹320 |
| ₹18,000 to ₹29,999 | ₹450 |
| ₹30,000 to ₹44,999 | ₹600 |
| ₹45,000 to ₹99,999 | ₹750 |
| ₹1,00,000 to ₹1,24,999 | ₹1,000 |
| Above ₹1,25,000 | ₹1,250 |
Since the levy operates on a half-yearly basis, businesses should not automatically convert these figures into monthly deductions.
The concerned local authority in Kerala administers professional tax according to the applicable state and local-body provisions.
8. Madhya Pradesh Professional Tax Rate
Madhya Pradesh calculates PT from annual salary or wages. The state schedule also specifies how employers can spread the annual amount across monthly deductions:
| Annual Salary | Annual Professional Tax |
| Up to ₹2,25,000 | Nil |
| Above ₹2,25,000 to ₹3,00,000 | ₹1,500 |
| Above ₹3,00,000 to ₹4,00,000 | ₹2,000 |
| Above ₹4,00,000 | ₹2,500 |
For the highest slab, employers generally deduct ₹208 for 11 months and ₹212 in the final month. The middle slabs also have prescribed monthly allocations.
The Commercial Tax Department, Government of Madhya Pradesh, administers professional tax and publishes the applicable rules and rates.
9. Maharashtra Professional Tax Deduction Slab
Maharashtra uses different professional tax thresholds for male and female salary earners. The state also applies a special February deduction in the highest taxable slab:
Male employees
| Monthly Salary | Professional Tax |
| Up to ₹7,500 | Nil |
| ₹7,501 to ₹10,000 | ₹175 per month |
| Above ₹10,000 | ₹200 per month |
Female employees
| Monthly Salary | Professional Tax |
| Up to ₹25,000 | Nil |
| Above ₹25,000 | ₹200 per month |
For the highest taxable slab, the employer deducts ₹300 in February instead of ₹200. This brings the annual professional tax to ₹2,500. The Maharashtra tax department’s published schedule confirms these salary thresholds and February treatment.
The Department of Goods and Services Tax, Government of Maharashtra, administers professional tax and publishes the applicable rules, rates, and notifications.
10. Manipur Professional Tax Slab
Manipur determines professional tax using annual salary bands. The figures below represent the yearly liability:
| Annual Salary | Professional Tax |
| Up to ₹50,000 | Nil |
| ₹50,001 to ₹75,000 | ₹1,200 per year |
| ₹75,001 to ₹1,00,000 | ₹2,000 per year |
| ₹1,00,001 to ₹1,25,000 | ₹2,400 per year |
| Above ₹1,25,000 | ₹2,500 per year |
Employers may recover the annual liability through payroll deductions. Presenting these figures as monthly amounts would incorrectly exceed the annual professional tax ceiling.
The Department of Taxes, Government of Manipur, administers professional tax and publishes the applicable rules and rates.
11. Meghalaya Professional Tax Rates
Meghalaya also uses annual income to determine professional tax. The schedule contains several income bands, making it more detailed than many other state PT structures:
| Annual Salary | Professional Tax |
| Up to ₹50,000 | Nil |
| ₹50,001 to ₹75,000 | ₹200 per year |
| ₹75,001 to ₹1,00,000 | ₹300 per year |
| ₹1,00,001 to ₹1,50,000 | ₹500 per year |
| ₹1,50,001 to ₹2,00,000 | ₹750 per year |
| ₹2,00,001 to ₹2,50,000 | ₹1,000 per year |
| ₹2,50,001 to ₹3,00,000 | ₹1,250 per year |
| ₹3,00,001 to ₹3,50,000 | ₹1,500 per year |
| ₹3,50,001 to ₹4,00,000 | ₹1,800 per year |
| ₹4,00,001 to ₹4,50,000 | ₹2,100 per year |
| ₹4,50,001 to ₹5,00,000 | ₹2,400 per year |
| Above ₹5,00,000 | ₹2,500 per year |
The source figures are annual liabilities. Payroll systems may spread the amount across the applicable payment period rather than treating ₹200, ₹300, or higher amounts as monthly tax.
The Excise, Registration, Taxation & Stamps Department, Government of Meghalaya, administers professional tax and publishes the applicable rules and rates.
12. Odisha Professional Tax Slab
Odisha determines the professional tax for salary and wage earners using annual gross salary. The state tax department currently publishes the following employee rates:
| Annual Gross Salary | Professional Tax |
| Below ₹1.60 lakh | Nil |
| ₹1.60 lakh to ₹3 lakh | ₹125 per month |
| Above ₹3 lakh | ₹200 per month for the first 11 months and ₹300 in the final month |
The Odisha Commissionerate of CT & GST confirms these rates and requires employers to deduct the applicable amount from salary or wages.
13. Punjab Professional Tax Rate
Punjab applies professional tax, officially known as Punjab State Development Tax (PSDT), to applicable taxpayers based on the prescribed income condition:
| Applicable Salary/Income | Professional Tax |
| Up to 24,999 | Nil |
| Above ₹2,50,000 | ₹200 |
The applicable category should be confirmed before deduction because Punjab’s PT provisions do not follow the same structure used by states such as Karnataka or Maharashtra.
The Department of Excise and Taxation, Government of Punjab, administers professional tax and publishes the applicable rules and rates.
14. Puducherry Professional Tax Slab
Puducherry calculates professional tax on a half-yearly income basis:
| Half-Yearly Salary | Professional Tax |
| Up to ₹99,999 | Nil |
| ₹1,00,000 to ₹2,00,000 | ₹250 |
| ₹2,00,001 to ₹3,00,000 | ₹500 |
| ₹3,00,001 to ₹4,00,000 | ₹750 |
| ₹4,00,001 to ₹5,00,000 | ₹1,000 |
| Above ₹5,00,000 | ₹1,250 |
At the highest slab, the half-yearly liability of ₹1,250 results in ₹2,500 for two half-year periods.
The Commercial Taxes Department, Government of Puducherry, administers professional tax and publishes the applicable rules and rates.
15. Sikkim Professional Tax Slab
The professional tax slab in Sikkim is based on monthly salary:
| Monthly Salary | Professional Tax |
| Up to ₹20,000 | Nil |
| ₹20,001 to ₹30,000 | ₹125 per month |
| ₹30,001 to ₹40,000 | ₹150 per month |
| Above ₹40,000 | ₹200 per month |
The highest slab produces an annual liability of ₹2,400 when the employee remains in that slab throughout the year.
The Commercial Taxes Division, Government of Sikkim, administers professional tax and publishes the applicable rules and rates.
16. Tamil Nadu Professional Tax Slab
Tamil Nadu calculates professional tax on a half-yearly income basis. The applicable rate can vary based on the local authority, so taxpayers should check the schedule prescribed for their municipality or town panchayat.
For the state schedule published by the Tamil Nadu Directorate of Town Panchayats, the professional tax rates are:
| Half-Yearly Salary | Professional Tax |
| Up to ₹21,000 | Nil |
| ₹21,001 to ₹30,000 | ₹180 |
| ₹30,001 to ₹45,000 | ₹425 |
| ₹45,001 to ₹60,000 | ₹930 |
| ₹60,001 to ₹75,000 | ₹1,025 |
| Above ₹75,000 | ₹1,250 |
The exact professional tax applicable to an employee or professional depends on the relevant local authority’s notified schedule.
The concerned municipality, municipal corporation, or town panchayat in Tamil Nadu administers professional tax according to its applicable schedule.
17. Tripura Professional Tax Rate
Tripura uses monthly gross salary to determine the applicable professional tax:
| Monthly Salary | Professional Tax |
| Up to ₹7,500 | Nil |
| ₹7,501 to ₹15,000 | ₹150 per month |
| Above ₹15,000 | ₹208 per month |
An employee in the highest slab can therefore incur ₹2,496 over 12 months.
The Directorate of Taxes, Government of Tripura, administers professional tax and publishes the applicable rules and rates.
18. West Bengal Professional Tax Slab
The professional tax slab in West Bengal is based on monthly salary. Employers deduct the applicable amount from the employee’s salary and remit it under the state’s professional tax system:
| Monthly Salary | Professional Tax |
| Up to ₹10,000 | Nil |
| ₹10,001 to ₹15,000 | ₹110 per month |
| ₹15,001 to ₹25,000 | ₹130 per month |
| ₹25,001 to ₹40,000 | ₹150 per month |
| Above ₹40,000 | ₹200 per month |
This structure makes the professional tax slab in West Bengal particularly relevant for payroll calculations because the deduction increases as monthly salary crosses each threshold.
The Directorate of Commercial Taxes, Government of West Bengal, administers professional tax and publishes the applicable rules and requirements.
Note: Professionals, self-employed persons, firms, and other categories may have separate PT rates or enrollment requirements.
States and Union Territories That Do Not Levy Professional Tax
Professional tax does not apply in the following states and Union Territories:
- Arunachal Pradesh
- Delhi
- Goa
- Haryana
- Himachal Pradesh
- Jammu and Kashmir
- Ladakh
- Rajasthan
- Uttar Pradesh
- Uttarakhand
- Chandigarh
- Andaman and Nicobar Islands
- Dadra and Nagar Haveli and Daman and Diu
- Lakshadweep
How to Use the Professional Tax Slab for Salary Calculation?
A professional tax slab does not always translate directly into a monthly deduction. The applicable calculation depends on the state and its assessment period.
Before deducting PT from salary, check:
- State of applicability: Identify the state or local authority whose professional tax rules cover the employee.
- Salary period: Confirm whether the slab uses monthly, annual, or half-yearly salary.
- Employee category: Check whether separate rates apply based on gender, profession, employment type, or another category.
- Special-month deduction: Some states collect a higher amount in one month to reach the prescribed annual liability.
- Current notification: Review the latest state schedule before finalizing payroll deductions.
Rates are checked for FY 2026–27. State notifications may change during the year.
