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.

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.

Need help with payroll compliance?

Our partners handle PT registration, deductions, deposits, and returns across all states.

Offset compliance costs with grants

Professional tax is one of many payroll compliance costs. Government grants can help offset your overall statutory burden.

Browse grants

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.

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.

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: ₹0–₹300/mo based on slabs. ₹300/mo for gross > ₹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.

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.