Professional Tax (PT) is a state-level tax on income from salary or profession. The employer deducts it monthly and remits it to the state government. The total annual PT is capped at ₹2,500.

Professional Tax

Professional Tax (PT) is a state-level tax on income from salary or profession. The employer deducts it monthly and remits it to the state government. The total annual PT is capped at ₹2,500.

What is Professional Tax?

Professional Tax is levied by individual state governments on salaried and self-employed individuals. Rates and slabs vary by state. Maharashtra, Karnataka, West Bengal, Tamil Nadu, Andhra Pradesh, and Telangana are among the states that levy PT. The total annual PT cannot exceed ₹2,500 (Article 276 of the Constitution).

Example

Karnataka slab (FY 2025-26): Salary up to ₹15,000: Nil Salary above ₹15,000: ₹200/month

How Professional Tax is used

PT is deducted from gross salary every month and shown on the payslip. Employers file monthly or quarterly PT returns with the state commercial tax department.

Professional Tax FAQs

Is Professional Tax the same in every state?

No. Slabs and rates differ by state. Some states (Delhi, Haryana, UP for example) do not levy PT at all.

What is the maximum PT?

₹2,500 per year, set by the Constitution.

Is PT deductible from taxable income?

Yes. PT paid is deductible from "Income from Salary" while computing taxable income.