Professional Tax Registration in India: State Rules & Employer Duties (2026)

1Who must pay / register?

• Salaried employees earning above the state's threshold — the employer deducts it from salary.
• Self-employed professionals (doctors, lawyers, CAs, consultants, traders).
• Businesses, proprietors, partners, and directors operating in a state that levies it.
• Note: a few states/UTs do NOT levy professional tax at all.

2Rates and the cap

Rates are slab-based on income and capped at ₹2,500 per year per person. Each state has its own portal, slabs, and exemptions (e.g. for senior citizens, persons with disability, or income below the threshold). Always check your specific state's commercial-tax / professional-tax website.

3Employer duties

• Obtain a registration (to pay your own) and an enrolment/deduction certificate (to deduct from employees), as your state requires.
• Deduct professional tax from each employee's salary and deposit it with the state by the due date.
• File the periodic professional-tax return on the state portal.
• The employee can claim the professional tax paid as a deduction from salary income under the Income-tax Act.

4Stay compliant

Register in every state where you have employees or a place of business, deposit on time, and keep payment proofs. Non-registration or late payment attracts penalties and interest that vary by state.