Professional Tax in Madhya Pradesh

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

Madhya Pradesh runs a four-band monthly professional tax with a February adjustment, similar in spirit to Maharashtra. Nothing is payable up to ₹18,750 a month. From ₹18,751 to ₹25,000 the tax is ₹125; from ₹25,001 to ₹33,333 it is ₹167, rising to ₹208 in February; and above ₹33,333 it is ₹208, rising to ₹212 in February. The slightly odd figures exist so that the top band totals exactly ₹2,500 across the year (eleven months plus a higher February). Employers register with the Madhya Pradesh commercial tax department, deduct PT against each employee band, and file monthly. The ₹18,750 exemption threshold keeps junior staff out of PT, and the structure mainly bites at mid and senior salaries. As with every state, the obligation follows the work location, so an Indore or Bhopal office of an out-of-state company has to register in Madhya Pradesh for its local employees. The detail to watch is the February top-up at the upper bands, which mirrors the Maharashtra trap: a payroll system that applies the same figure for all twelve months will under-deduct in February and leave a small shortfall against the annual cap. Confirm the current MP slab notification and the exact monthly due date with the state portal before treating these as final.