Professional Tax in India: State-wise Rates and Who Pays It
Professional tax is deducted from your salary every month in most states. Here is how much each state charges.
What is professional tax?
Professional tax (PT) is a state-level tax on employment income and professions. Despite its name, it is not a tax on a specific profession. The Constitution caps the amount at ₹2,500 per person per year, and each state that levies it sets its own slabs, exemptions, and payment schedule.
Who deducts it?
Your employer deducts PT from salary and deposits it with the state government. Self-employed professionals may need to register and pay directly. The deduction usually appears as a separate line on your payslip and can vary when your salary crosses a state slab.
State-wise rates
| State | Common salary treatment | | --- | --- | | Maharashtra | ₹200/month; nil below ₹7,500/month gross | | Karnataka | ₹200/month above ₹15,000 gross | | West Bengal | Slab-based, up to ₹200/month | | Andhra Pradesh | Up to ₹200/month | | Telangana | Up to ₹200/month | | Tamil Nadu | Up to ₹208/month | | Gujarat | Up to ₹200/month | | Madhya Pradesh | Up to ₹208/month | | Kerala | Up to ₹208/month |
States with no professional tax currently include Delhi, Rajasthan, Uttar Pradesh, Haryana, Punjab, Himachal Pradesh, Uttarakhand, Bihar, Jharkhand, Chhattisgarh, and Goa. Rules can change, so check your state notification if your payroll differs.
How PT appears on your salary slip
The deduction may be labelled Professional Tax, PT, or State Tax. It reduces net salary but is usually a small fixed or slab-based amount. Employers commonly deduct ₹200 for eleven months and ₹300 in one month where the state schedule requires the annual maximum; the exact pattern depends on the state.
Is professional tax deductible?
Yes. Salaried employees can claim professional tax as a deduction from salary income under Section 16 of the Income-tax Act. It is not a Section 80C investment and does not use your ₹1,50,000 80C limit. Your Form 16 and payslips should reconcile to the amount claimed.
Estimate the full effect of deductions with our In-Hand Salary Calculator, then use the Tax Regime Comparison tool to see how TDS changes.
Frequently asked questions
Is professional tax the same in every state?
No. It is state-specific. Some states have no PT, while others use income slabs and different exemptions.
Can an employer deduct more than ₹2,500 a year?
The constitutional ceiling is ₹2,500 per person per year, but a payslip pattern may look uneven because one month can carry a higher catch-up deduction. Ask payroll for the state schedule if the annual total appears higher.
Do employees pay PT in Delhi?
Delhi is among the states and territories listed here as not levying professional tax on salary. Your employer may still show other statutory deductions.
Can I claim a refund of professional tax?
You generally claim the eligible amount as a salary deduction rather than requesting a separate refund. If payroll deducted PT incorrectly, raise it with HR and the relevant state authority.
For a line-by-line payslip explanation, read How to Read Your Salary Slip.