What is Professional Tax?
Last updated: 27 June 2026
Professional Tax (PT) is a state-government tax levied on income from employment, self-employment, and professions — charged on a slab basis and constitutionally capped at ₹2,500 per person per year — which employers must deduct from employee salaries and remit to the state authority.
Despite the name, it applies to all salaried employees and not just professionals. The employer is responsible for deducting PT from the employee's salary, registering as a PT deductor, and remitting the collected amount to the state commercial-tax or PT department.
Which states levy Professional Tax?
Approximately 21 states and UTs levy Professional Tax, including Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat, Kerala, and Madhya Pradesh. States with no PT include Delhi, Uttar Pradesh, Rajasthan, Haryana, Punjab, and most union territories. Goa and Himachal Pradesh are generally treated as no-PT states, though sources differ slightly, so confirm the current position for these two.
Fact box. Professional Tax is deductible as an expense under Section 16(iii) of the Income Tax Act — it reduces taxable salary income in the year it is paid, for both old and new tax regimes.
Example state slabs (FY 2026-27)
| State | Monthly gross | PT per month |
|---|---|---|
| Maharashtra | ≤ ₹7,500 | Nil · ₹7,501–10,000: ₹175 · > ₹10,000: ₹200 (₹300 in Feb) |
| Karnataka | < ₹25,000 | Nil · ≥ ₹25,000: ₹200 |
| Telangana | ≤ ₹15,000 | Nil · ₹15,001–20,000: ₹150 · > ₹20,000: ₹200 |
| Gujarat | ≤ ₹12,000 | Nil · > ₹12,000: ₹200 |
PT slabs are not centrally standardised and change by state notification, so always confirm the current slab against the relevant state's PT department before deducting.
Compliance for employers
- Enrolment: Register for PT as an employer (PTEC — Professional Tax Enrolment Certificate).
- Registration: Obtain PTRC (Professional Tax Registration Certificate) to deduct from employees.
- Frequency: Monthly in most states; Tamil Nadu and West Bengal are effectively semi-annual/annual.
- Due date: Varies by state (e.g., Karnataka — 20th of following month; Gujarat — before 30 September).
Frequently asked questions
Is Professional Tax applicable to self-employed individuals? Yes. Self-employed professionals, proprietors, and partners in firms must register and pay PT directly (via enrolment) rather than through salary deduction.
Is there a PT exemption for women? Some states exempt women up to a wage threshold — in Maharashtra, women earning up to ₹10,000 a month are reported to be exempt. Exemption rules are state-specific, so confirm the current threshold for your state.
Sources: State commercial-tax / PT department portals; Zoho Payroll Professional Tax Guide
General information, not professional advice. Verify on the official portal for your case. Reviewed by a Chartered Accountant; last updated 27 June 2026.
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