Professional tax is a small annual tax levied by some Indian states on salaried individuals, capped at ₹2,500 per year per the Constitution. It's deducted monthly from your salary and remitted by your employer. Rates vary by state and income slab — Maharashtra, Karnataka, West Bengal, Tamil Nadu, and several others levy it; Delhi, Haryana, and many northern states do not.
What is Professional Tax?
Professional tax (PT) is one of the few state-level taxes on income, distinct from income tax (which is central). Despite the name, it applies to all employed and self-employed individuals — not just professionals — in the states that have implemented it under the Constitution's Article 276.
The Constitution caps professional tax at ₹2,500 per person per financial year. Within this cap, each state sets its own slabs based on monthly income. Maharashtra charges ₹200 monthly for income ₹10,000+; Karnataka has a single rate of ₹200/month for income ₹25,000+. Most states exempt the lowest income brackets entirely.
How professional tax is calculated
Each state publishes its own slab table relating monthly gross salary to monthly PT amount. The calculator picks the right slab for your state and income, multiplies by 12 for the annual estimate, and confirms it stays under the ₹2,500 constitutional cap.
Employers deduct PT from monthly salary and remit it to the state government. As an employee, you don't separately file or pay anything — but PT deducted is allowed as a deduction under section 16(iii) of the Income Tax Act when computing taxable salary income.
- Monthly PT
- State slab amount—varies from ₹0 to ₹208 depending on state and income
How to use this calculator
Pick your state
Maharashtra, Karnataka, West Bengal, Tamil Nadu, Andhra Pradesh, Telangana, Gujarat, MP, Odisha, Assam, Tripura, Bihar, Jharkhand, Chhattisgarh, Sikkim, Mizoram, Manipur, Meghalaya, Nagaland, and Kerala levy PT. Delhi, Haryana, Punjab, UP, Rajasthan, J&K, and most other northern states do not.
Enter your monthly gross salary
Use gross salary before any tax or deductions, since PT is computed on gross. Most states' slabs are explicit in monthly terms; the calculator maps your input to the right slab.
Read the monthly and annual PT
Calculator shows the monthly deduction (matches what you'd see on your payslip) and the annual total (used as a Section 16 deduction in your income tax computation).
When to use it
Verifying payslip deductions
If your payslip shows a 'Professional Tax' line, cross-check against the state's official slab. Errors are rare but happen, especially when employers run multi-state payroll.
Multi-state employment
If you change state mid-year, PT is paid in whichever state you worked. The annual cap of ₹2,500 applies per state — so working in two states could result in slightly higher total PT.
Self-employed registration
Self-employed professionals (lawyers, doctors, CAs, consultants) typically have to register and pay PT directly to the state. Check the state's commercial tax portal for registration; the same slabs apply.
Common mistakes to avoid
Forgetting to claim PT as Section 16(iii) deduction
Annual PT is auto-deducted by employers but the Section 16(iii) deduction is sometimes missed by self-filers. Add it to your salary calculation before tax.
Confusing professional tax with income tax
Professional tax is state-level and capped at ₹2,500/year. Income tax is central and based on slabs. They're entirely separate — paying one doesn't reduce the other (except via the small Section 16 deduction).
Frequently asked questions
Which states levy professional tax in India?
What is the maximum professional tax that can be charged?
Is professional tax deductible from income tax?
Do I need to pay PT if I'm self-employed?
What if I work in multiple states during the year?
Can my employer skip PT deduction?
References
- Constitution Article 276 — limits on professional tax— Government of India