Professional Tax Calculator (by State)

⚡ In shortProfessional tax is a small state levy on employment, deducted from your salary by the employer and paid to the state government — and because it is a state subject, the slabs differ everywhere and several states do not charge it at all.

Open the free Professional Tax Calculator (by State) →

How it is calculated

Article 276 of the Constitution caps professional tax at ₹2,500 per person per year, so however high your salary, the annual amount cannot exceed that. Within the cap each state sets its own monthly-salary slabs. Maharashtra charges ₹200 a month above ₹10,000 (₹300 in February so the year totals ₹2,500), and exempts women earning up to ₹25,000 a month. Karnataka charges ₹200 a month only above ₹25,000. West Bengal runs a graded scale from ₹110 to ₹200. Telangana and Andhra Pradesh charge nothing up to ₹15,000. Tamil Nadu and Kerala levy it half-yearly through the local body. Delhi, Uttar Pradesh, Haryana and Rajasthan levy no professional tax at all. Whatever you pay is deductible from salary under §16(iii) — but only if you are on the old regime.

A state levy, capped by the Constitution

Professional tax is imposed by states, not the Union, and the Constitution caps it at ₹2,500 per person per year. That ceiling is why the amounts look trivial — and why the levy is so often ignored. Rates, slabs and payment frequency differ by state, and several states do not levy it at all, including Delhi, Uttar Pradesh, Haryana, Rajasthan and Uttarakhand as well as a number of north-eastern states.

It follows where the employee works

Liability attaches to the place of work, not to the location of the company's headquarters or its registration. An employer with staff across several states needs a registration and a payment cycle in each of those states, each with its own rate and its own due date. Remote and distributed working has made this a common oversight — an employee working from a state where the company has no office can still create an obligation there.

Two different registrations, easily confused

Employers need an enrolment to pay tax on their own account and a separate registration to deduct and deposit tax from employees' salaries. They are distinct certificates with distinct obligations, and holding one does not satisfy the other. Self-employed professionals and traders who are not employed by anyone register directly and pay their own liability, usually annually.

The penalty dwarfs the tax

Because the maximum annual liability is ₹2,500, the amount itself is never the problem. Interest and penalties for late registration, late payment or non-filing accumulate quietly over years, and by the time the position is examined the total can be several times the original tax. It is one of the cheapest compliance items to keep current and one of the more embarrassing to leave outstanding.

Claim the deduction you have already paid

Professional tax actually paid is deductible from salary income under section 16(iii) — but only under the old regime, and it is not applied automatically. Check that your Form 16 reflects it and that your return claims it. There is no ceiling on this deduction beyond the tax actually paid. If you are choosing between regimes, the old vs new regime calculator accounts for deductions like this one.

Frequently asked questions

Which states have no professional tax?

Delhi, Uttar Pradesh, Haryana, Rajasthan, Uttarakhand and several north-eastern states do not levy it. It is a state subject, so the position can change by notification.

Is professional tax deductible from income tax?

Yes, under §16(iii), the professional tax actually paid is deducted from salary income — but this deduction is only available under the old regime.

Why is Maharashtra's February deduction higher?

Maharashtra charges ₹200 for eleven months and ₹300 in February, which brings the year to exactly the ₹2,500 constitutional ceiling.

Who pays professional tax if I am self-employed?

You do, directly — self-employed professionals and traders register and pay it themselves rather than having it deducted by an employer.