What is professional tax in India?

A state-level tax on employment, deducted by the employer from the employee's salary and deposited with the state government. It is capped at ₹2,500 per employee per year. Not all states levy it.

Which states have no professional tax?

Haryana, Uttar Pradesh, Bihar, Himachal Pradesh, and Jharkhand do not levy professional tax. All other major states have some form of PT with varying slabs.

Who is responsible for paying professional tax?

The employer is responsible for deducting professional tax from employees' salaries and depositing it with the state government by the 15th of the following month. Employers must register for a PT certificate in each state where they have employees.

Do I have to register for professional tax in every state where I have employees?

Yes. Professional tax is state-administered, so if your team works across, say, Karnataka, Maharashtra and Gujarat, you typically need a PT registration (and to deposit dues) in each of those states. There is no single national PT registration. States like Haryana, Uttar Pradesh, Bihar, Himachal Pradesh and Jharkhand levy no PT, so no registration is needed there.

How does professional tax apply to remote employees?

PT generally follows the state where the employee actually works, not where your office is registered. For fully remote staff this is a grey area, and practice varies — many employers apply PT based on the employee's work location or the state of the establishment they're attached to. Because rules differ by state, confirm the position with a payroll-compliance professional for your specific setup.

What is the maximum professional tax I can be charged in a year?

Professional tax is capped at ₹2,500 per employee per year across all states by law — no state can levy more than that. The monthly amount varies by state and salary slab (for example ₹200/mo in Karnataka above ₹15,000 gross), but the annual total per person can never exceed ₹2,500.

What happens if I miss the professional tax deposit deadline?

PT is typically due by the 15th of the following month, and late deposit attracts interest and penalties that differ by state. Continued non-compliance can also lead to notices and prosecution under the relevant state PT Act. Since penalty rates vary by state, treat the deadline as firm and check your state's schedule for the exact late-fee amount.

Can employees claim professional tax as a deduction on their income tax?

Yes. Professional tax actually paid is allowed as a deduction from salary income under Section 16(iii) of the Income Tax Act, so it reduces the employee's taxable salary. The employer deducts and deposits it, then reflects it in Form 16. For the employer, PT is also deductible as a business expense.

Professional Tax Calculator (India)

Calculate professional tax per employee by state — Karnataka ₹200/mo, Maharashtra ₹0–₹300, Tamil Nadu ₹0–₹208 and more. Includes annual caps and total liability.

Monthly gross salary per employee

₹

Gross monthly salary (basic + HRA + allowances) before deductions.

₹50 thousands

State of employment

Professional tax is deducted in the state where the employee works.

Number of employees

Total employees in this state subject to professional tax.

Monthly professional tax per employee

₹200

₹200/mo if gross > ₹15,000. Nil otherwise.

Annual professional tax per employee₹2,400

Monthly total (all employees)₹2,000

Annual total (all employees)₹24,000

Maximum annual PT per employee allowed₹2,500

For 10 employees in Karnataka. Payable to the state government by the 15th of every month.

Estimates only — not financial, tax or legal advice. Figures vary by state, capital and individual circumstances.

How to use this calculator

Select the state and enter gross salary to see the exact professional tax per employee and the total annual liability for your team.

1
Enter monthly gross salary. Gross salary including basic, HRA, and all allowances before deductions.
2
Select the state of employment. Professional tax rates and slabs differ by state. Select where your employees actually work.
3
Enter headcount in this state. Total employees working in the selected state to compute your total monthly/annual liability.
4
Read the result. See per-employee and total professional tax, monthly and annual amounts.

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What is professional tax?

Professional tax is a state-level tax on employment levied by the state government. The employer deducts it from the employee's salary and deposits it with the state each month. It is not a tax on the business itself — it is collected on behalf of employees, but the employer is responsible for compliance.

Professional tax is capped at ₹2,500 per employee per year across all states. Some states (Haryana, Uttar Pradesh, Bihar, Himachal, Jharkhand) do not levy professional tax at all.

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State-wise professional tax rates

Each state sets its own professional tax slabs. Here is a summary of the major states:

Karnataka: ₹200/mo (gross > ₹15,000). Nil below that.
Maharashtra: Nil ≤ ₹10,000, ₹175/mo (₹10,001–₹15,000), ₹200/mo (₹15,001–₹25,000), ₹300/mo above ₹25,000.
Tamil Nadu: ₹0–₹208/mo with 8 slabs based on monthly salary.
Andhra Pradesh / Telangana: ₹150/mo (gross > ₹15,000).
West Bengal: ₹200/mo (gross > ₹40,000), ₹110/mo otherwise.
Gujarat: ₹200/mo (gross > ₹12,000).
Delhi: ₹208/mo (gross > ₹15,000).
Kerala: ₹150/mo (gross > ₹15,000).
Rajasthan, MP, Punjab, Odisha, Chhattisgarh, Assam: ₹150–₹200/mo (gross > ₹15,000).
No PT states: Haryana, Uttar Pradesh, Bihar, Himachal Pradesh, Jharkhand — no professional tax.

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Professional tax compliance

Employers must:

Register for professional tax in the state(s) where employees work (PT registration certificate).
Deduct professional tax from eligible employees' salaries each month.
Deposit the deducted amount with the state government by the 15th of the following month.
File periodic returns (monthly/quarterly/annually depending on the state).
Issue Form 16 (professional tax certificate) to employees at year-end.

Professional tax is deductible as a business expense for the employer and as a tax deduction under Section 16(iii) for the employee under the Income Tax Act.

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Registration cost by state

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