Short answer: professional tax (PT) is a state tax on employment, deducted monthly by your employer, capped by the Constitution at ₹2,500 per year. Rates differ by state: Karnataka charges a flat ₹200/month above ₹25,000 gross; Maharashtra charges ₹200/month above ₹10,000 (₹300 in February, which is why your February payslip dips); and Delhi, Haryana, UP, Rajasthan, and Uttarakhand charge nothing at all. Below: the slab tables, the employer registration mechanics (PTRC vs PTEC – most small businesses need both), and the compliance calendar.
What professional tax is (and isn’t)
Despite the name, PT has nothing to do with being a “professional” – it applies to salaried employees, self-employed traders, freelancers, and professionals alike under Article 276 of the Constitution, which caps the levy at ₹2,500/year. For salaried employees the employer deducts and remits it; the amount is then deductible from taxable income under Section 16(iii) – one of the few deductions that survives in both tax regimes, since it’s a deduction from salary income itself, not a Chapter VI-A item.
On a payslip it’s the small fixed line – ₹200 in most months – that new employees always ask about (how to read the rest of the slip).
States with NO professional tax
If you’re in Delhi, Haryana, Uttar Pradesh, Rajasthan, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Ladakh, Chandigarh, Goa, or the union territories other than Puducherry – there is no PT line on your payslip and nothing to register. (Punjab introduced its levy in 2018 as a “development tax” – ₹200/month above ₹25,000/month income – so Punjab does deduct.)
Slab tables by state (monthly gross salary basis)
Verified against our calculator data in July 2026 – always confirm your state’s latest notification, as PT slabs move by state budget. For an instant answer, use the Professional Tax Calculator, which covers all 21 levying states.
Maharashtra (₹2,500/year cap; gender-differentiated slabs)
| Monthly gross | PT (men) |
|---|---|
| Up to ₹7,500 | Nil |
| ₹7,501 – ₹10,000 | ₹175 |
| Above ₹10,000 | ₹200/month, ₹300 in February (total ₹2,500/yr) |
Women are exempt up to ₹25,000/month (₹200 + Feb ₹300 above that). The February ₹300 exists purely to make 11 × 200 + 300 = ₹2,500 hit the constitutional cap exactly.
Karnataka
| Monthly gross | PT |
|---|---|
| Up to ₹24,999 | Nil |
| ₹25,000 and above | ₹200 (₹2,400/yr) |
West Bengal
| Monthly gross | PT |
|---|---|
| Up to ₹10,000 | Nil |
| ₹10,001 – ₹15,000 | ₹110 |
| ₹15,001 – ₹25,000 | ₹130 |
| ₹25,001 – ₹40,000 | ₹150 |
| Above ₹40,000 | ₹200 |
Telangana & Andhra Pradesh (identical slabs)
| Monthly gross | PT |
|---|---|
| Up to ₹15,000 | Nil |
| ₹15,001 – ₹20,000 | ₹150 |
| Above ₹20,000 | ₹200 |
Gujarat
| Monthly gross | PT |
|---|---|
| Up to ₹12,000 | Nil |
| Above ₹12,000 | ₹200 |
Tamil Nadu (levied half-yearly by municipalities)
| Half-yearly gross | PT per half-year |
|---|---|
| Up to ₹21,000 | Nil |
| ₹21,001 – ₹30,000 | ₹135 |
| ₹30,001 – ₹45,000 | ₹315 |
| ₹45,001 – ₹60,000 | ₹690 |
| ₹60,001 – ₹75,000 | ₹1,025 |
| Above ₹75,000 | ₹1,250 |
Kerala also levies half-yearly (₹1,250/half-year at the top). Other levying states – MP, Bihar, Jharkhand, Odisha, Punjab, Assam, and the North-Eastern states, Sikkim, Puducherry – have their own monthly slabs, all capped at ₹2,400-₹2,500/year; the calculator has each one.
The employer side: PTRC vs PTEC (you probably need both)
This is the part small businesses get wrong at incorporation. In PT states there are two separate registrations:
- PTEC (Enrolment Certificate): the company’s own liability as an entity doing business – a flat annual payment (typically ₹2,500) for the company itself, plus directors/partners individually in many states. Required even with zero employees.
- PTRC (Registration Certificate): the authority to deduct PT from employees’ salaries and remit it. Required the moment you pay your first salary above the slab threshold.
A one-person private limited company in Maharashtra needs PTEC from day one; it needs PTRC when it hires. Deducting PT from staff without holding PTRC – or holding PTRC but forgetting the company’s own PTEC payment – are the two classic notices.
Compliance calendar (Maharashtra pattern; states vary):
- Register for PTEC/PTRC within 30 days of becoming liable.
- Remit deducted PT monthly (by the last day of the following month if annual liability ≥ ₹1,00,000; otherwise annual returns may apply).
- PTEC annual payment by 30 June each year.
- Reconcile PT deducted vs remitted at year-end – mismatches surface in payroll audits.
FAQ
Is PT calculated on gross, basic, or CTC? Gross monthly salary/wages as defined by the state act – broadly the payslip gross, not CTC and not just Basic. See where it sits in the full structure with the CTC Breakup and In-Hand Salary calculators.
I work remotely from a different state than my employer’s office – whose PT applies? Practically, PT follows where salary is disbursed / where the employee’s place of work is registered. Multi-state employers register PTRC in each state where they have employees – a real compliance burden that remote work has amplified. If your payslip deducts the wrong state’s PT, flag it to payroll.
Two jobs – is PT deducted twice? It can be, but the ₹2,500 constitutional cap applies per person per year; you can claim the excess via the state’s mechanism (or ensure one employer stops deducting once the cap is reached).
Freelancers and consultants? You pay directly under PTEC – enrol once and pay the flat annual amount (typically ₹2,500) by the state’s due date. No employer, no monthly slab.
Is the February ₹300 in Maharashtra an error on my payslip? No – it’s the designed top-up to reach exactly ₹2,500 for the year. Expect the same pattern in a few other states with ₹2,500 caps and ₹200 monthly rates.
Calculators referenced: Professional Tax · In-Hand Salary · CTC Breakup · Payslip Generator. Slabs verified against state notifications current at the time of writing; states revise PT in their budgets – always check the current notification before running payroll. Not legal advice.
