Guides

Professional Tax slabs by state (2026-27)

Monthly Professional Tax for salaried employees in the main states that levy it — with the February rule, Tamil Nadu’s half-yearly system and the states that charge nothing.

Professional Tax (PT) is a state tax on employment, deducted by employers from salary each month. Each state sets its own slabs, but no one can be charged more than ₹2,500 a year. Below are the current slabs for salaried employees in the main states that levy it, checked on 28 September 2026.

Slabs change through state budgets and notifications. Always confirm with the state’s official portal before running payroll, especially at the start of a financial year.

Maharashtra

Monthly salaryMenWomen
Up to ₹7,500NilNil
₹7,501 – ₹10,000₹175Nil
₹10,001 – ₹25,000₹200 (₹300 in February)Nil
Above ₹25,000₹200 (₹300 in February)₹200 (₹300 in February)

Women earning up to ₹25,000 a month are exempt. People aged over 65 are also exempt.

Karnataka

Monthly salaryProfessional Tax
Below ₹25,000Nil
₹25,000 and above₹200 a month, ₹300 in February

The Karnataka amendment effective 1 April 2025 added the ₹300 February instalment, taking the yearly total from ₹2,400 to ₹2,500.

West Bengal

Monthly salaryProfessional Tax
Up to ₹10,000Nil
₹10,001 – ₹15,000₹110
₹15,001 – ₹25,000₹130
₹25,001 – ₹40,000₹150
Above ₹40,000₹200

Tamil Nadu (Chennai)

Tamil Nadu is different: Professional Tax is collected by the local body (corporation, municipality or panchayat), every half-year, based on the average half-yearly income — not the monthly salary. Greater Chennai Corporation revised its rates from the October 2024 half-year (council resolution No. 574/2024):

Half-yearly incomeTax per half-year
Up to ₹21,000Nil
₹21,001 – ₹30,000₹180
₹30,001 – ₹45,000₹425
₹45,001 – ₹60,000₹930
₹60,001 – ₹75,000₹1,025
Above ₹75,000₹1,250

The half-years run April–September and October–March. Other Tamil Nadu local bodies set their own rates, so check with the local body where the office is.

Gujarat

Monthly salaryProfessional Tax
Up to ₹12,000Nil
Above ₹12,000₹200

Telangana and Andhra Pradesh

Both states use the same slabs for salaried employees:

Monthly salaryProfessional Tax
Up to ₹15,000Nil
₹15,001 – ₹20,000₹150
Above ₹20,000₹200

Madhya Pradesh

Madhya Pradesh sets its slabs on annual salary:

Annual salaryYearly taxMonthly deduction
Up to ₹2,25,000NilNil
₹2,25,001 – ₹3,00,000₹1,500₹125
₹3,00,001 – ₹4,00,000₹2,000₹166 (₹174 in the 12th month)
Above ₹4,00,000₹2,500₹208 (₹212 in the 12th month)

States that do not charge Professional Tax

Delhi, Haryana, Uttar Pradesh, Rajasthan, Uttarakhand, Himachal Pradesh, Goa and Chandigarh do not levy Professional Tax on salaries. Punjab charges a separate State Development Tax instead. Other states that do levy it — including Kerala, Odisha, Assam, Bihar, Jharkhand and the North-Eastern states — have their own slabs; check the state’s portal.

How employers handle it

  • Register — in each state where you have employees, under that state’s Professional Tax Act.
  • Deduct every month — based on the employee’s salary for the month (or half-year, in Tamil Nadu).
  • Pay and file on time — due dates differ by state; several states moved them earlier recently.
  • Watch February — Maharashtra and Karnataka deduct ₹300 instead of ₹200 in February.

In SetuWork, Professional Tax is a statutory salary head: you enter your state’s slabs — including gender-specific rules and the February amount — and it is worked out for every employee on every payslip. See payroll software, or check PF with the PF calculator.

Sources

This guide is general information to help HR and payroll teams, not legal or tax advice. Rules change and can depend on your circumstances — confirm with the official source or your consultant before acting on it.

Questions

Professional Tax — common questions

What is the maximum Professional Tax in a year?

The Constitution caps Professional Tax at ₹2,500 per person per year. That is why several states charge ₹200 a month and ₹300 in one month (usually February): 11 × ₹200 + ₹300 = ₹2,500.

Who deducts Professional Tax?

For salaried employees, the employer deducts it from salary each month and pays it to the state, after registering under that state’s Professional Tax law.

Which states do not charge Professional Tax?

Delhi, Haryana, Uttar Pradesh, Rajasthan, Uttarakhand, Himachal Pradesh, Goa and Chandigarh do not levy it. Punjab charges a separate State Development Tax instead.

Is Professional Tax deductible for income tax?

Professional Tax paid is allowed as a deduction from salary income under the old tax regime. Check the current position for the new regime with your tax adviser.

How does SetuWork handle Professional Tax?

You enter your own state’s slabs — salary ranges, gender-specific rules and a different February amount — and SetuWork works out each employee’s deduction every month. It is part of the payroll formula add-on.

Let payroll work out Professional Tax

Enter your state’s slabs once; SetuWork deducts the right amount for every employee, every month.