Professional tax by state

Professional tax is a state tax on salaries. The employer deducts it every month (twice a year in Tamil Nadu) for the state where the employee works, and pays it to the state or local body. No one pays more than ₹2,500 a year. Delhi does not charge it.

Which states charge professional tax?

These six states charge it, with the slabs below. Others, such as Andhra Pradesh, Kerala and Madhya Pradesh, also charge it; this guide does not cover them yet. Open a state for its full slab table and rules.

State	Deducted	No tax up to	Top rate
Karnataka	Every month	₹24,999 a month	₹200 a month
Maharashtra	Every month	₹7,500 a month	₹200 a month
Telangana	Every month	₹15,000 a month	₹200 a month
West Bengal	Every month	₹20,000 a month	₹208 a month
Gujarat	Every month	₹12,000 a month	₹200 a month
Tamil Nadu	Twice a year	₹21,000 a half-year	₹1,250 a half-year

Tamil Nadu figures are the Greater Chennai Corporation’s; other local bodies in the state set their own rates.

How is professional tax worked out?

On the employee’s gross salary for the month, using the slab for the state they work in. Tamil Nadu is the exception: it uses six months’ salary and is paid twice a year. Karnataka and Maharashtra deduct ₹300 in February instead of ₹200, so the year comes to exactly ₹2,500.

The salary calculator takes out professional tax by state along with PF, ESI and income tax, and the India compliance guide covers the other payroll deductions.

Who deducts and pays it?

The employer. It registers with the state, deducts the tax from each payslip and pays it to the state’s tax department, or in Tamil Nadu to the local body. Deadlines differ by state; each state page links to the official portal.

Professional tax in KarnatakaSlabs, who deducts it and the source Professional tax in MaharashtraSlabs, who deducts it and the source Professional tax in TelanganaSlabs, who deducts it and the source Professional tax in West BengalSlabs, who deducts it and the source Professional tax in GujaratSlabs, who deducts it and the source Professional tax in Tamil NaduSlabs, who deducts it and the source

Sources · checked 2 November 2026

General information, not legal or tax advice. Check the state’s notification before you file.

Questions

Frequently asked questions

Short answers about professional tax for Indian employers.

What is the maximum professional tax in a year?

₹2,500 a year for one person. The Constitution sets this cap, so no state can charge more. Karnataka and Maharashtra reach it by deducting ₹300 in February instead of ₹200.

Which state’s professional tax applies to an employee?

The state where the employee works. A company registered in Bengaluru with staff in Pune deducts Maharashtra’s professional tax for the Pune team and Karnataka’s for the Bengaluru team.

Who pays professional tax, the employer or the employee?

The employee. The employer deducts it from salary and pays it to the state or local body, and must register to do so.

Is professional tax deducted from taxable income?

Under the old regime, yes: professional tax paid is deducted from salary income. Under the new regime it is not.

Does Delhi charge professional tax?

No. Delhi does not charge professional tax, so nothing is deducted for employees who work there.

How does Peoplo.ai handle professional tax?

Peoplo.ai payroll is designed to support professional tax for every state. It applies the slab for the state each employee works in and shows the deduction on the payslip.