Professional Tax in Gujarat

Current as of May 2026. Professional tax rates are set by Gujarat and can change by notification; confirm against the state portal before relying on them for payroll.

Gujarat keeps professional tax simple with a two-band monthly structure. Nothing is payable up to ₹12,000 a month, and a flat ₹200 a month applies above that. The state raised the exemption threshold to ₹12,000 in recent years, which removed most lower-paid staff from PT. Employers register through the Gujarat commercial tax portal (commercialtax.gujarat.gov.in), deduct PT each month for employees over the threshold, and pay by the 15th of the following month. The annual return in Form 5 is due by 30 September. At ₹200 a month, the yearly liability is ₹2,400, under the ₹2,500 cap. As everywhere, applicability is decided by where the employee actually works, so an Ahmedabad or Surat office of an out-of-state company has to register in Gujarat for its local team. The flat structure makes payroll configuration straightforward compared with graduated states like West Bengal or half-yearly states like Tamil Nadu: one threshold, one rate, one monthly due date. The main thing to watch is the 30 September annual return, which is later than the 30 April deadline several other states use, so it sits outside the usual April compliance rush.