What is the maximum professional tax in India?

The maximum professional tax any state can levy is ₹2,500 per year per person, as mandated by Article 276(2) of the Constitution of India. Most high-income states achieve this by charging ₹200 per month for 11 months and ₹300 in the 12th month (Maharashtra in March, Karnataka in February). No state can levy more than ₹2,500 in a financial year regardless of income level.

Who is exempt from professional tax?

Common exemptions across states include: individuals aged 65 years and above (60+ in Karnataka), persons with permanent physical disability (40%+ disability), parents or guardians of mentally or physically challenged children, members of the armed forces (Central/State), individuals earning below the minimum threshold (varies by state), and women in Maharashtra earning up to ₹25,000/month. Specific exemptions vary by state and require documentary proof.

What is special about Maharashtra professional tax for women?

Maharashtra has gender-specific professional tax slabs. Women earning up to ₹25,000 per month are completely exempt from professional tax in Maharashtra. Women earning above ₹25,000 pay ₹200/month (₹300 in February/March). This is more favourable than the male slab where anyone earning above ₹10,000 pays ₹200/month. This exemption was introduced to encourage women's workforce participation.

Why is professional tax ₹300 in February in Karnataka?

Karnataka levies ₹200/month for 11 months (March to January) and ₹300 in February. This is because the constitutional maximum is ₹2,500/year (₹200 × 11 = ₹2,200 + ₹300 = ₹2,500). The same logic applies in Maharashtra, where ₹300 is collected in March instead of February. This is a common practice across states to comply with the ₹2,500 annual cap while maximising collection.

How is professional tax paid — by employee or employer?

For salaried employees, the employer is responsible for deducting professional tax from monthly salary and depositing it with the state government. The employer obtains a Professional Tax Registration Certificate (PTRC) for this purpose. Self-employed professionals and business owners obtain a Professional Tax Enrollment Certificate (PTEC) and pay directly to the state. The deducted PT appears on the salary slip and Form 16 annually.

What are the penalties for not paying professional tax?

Penalties vary by state. Typically: late payment fee of ₹100–₹300 per month, interest of 1–1.25% per month on the outstanding amount, and a penalty up to 50% of the total tax due in some states (e.g., West Bengal, Karnataka). Employers who fail to deduct or deposit PT face stricter penalties and can face legal action. Timely payment by the employer by the 30th of the following month (or state-specific date) is mandatory.

Professional Tax Calculator India 2025-26 – State-wise PT Slabs

Your Details

State of Employment

✅ This state does not levy Professional Tax. Your monthly take-home is not reduced by any PT deduction.

Gross Monthly Salary₹30,000

Gender Affects Maharashtra slabs

Exemptions

Senior citizen (65+ years · 60+ in Karnataka) — Fully exempt

Person with permanent disability (40%+) — Fully exempt

Armed Forces personnel — Fully exempt

Parent of mentally/physically challenged child — Exempt (select states)

✅ Exemption applies — ₹0 Professional Tax for you

Income Tax Saving Old Regime only

PT is deductible under Section 16(iii) — Old Regime only. Not available in New Regime.

Your Income Tax Slab (Old Regime)

Monthly Professional Tax

₹0

Annual PT —

% of salary —

Take-home after PT: ₹0 | Annual PT: ₹0

📊 State Tax Slab Breakdown

Monthly Salary Range	Monthly PT	Status

📅 Month-by-Month Deduction

Highlighted months have special higher rate

💸 Income Tax Saving (Old Regime — Sec. 16(iii))

Annual PT paid (deductible)

₹0

Tax saved @ 30% slab

₹0

Net effective PT cost = Annual PT − Tax saved = ₹0

⚠️ Not available under New Tax Regime (Section 115BAC)

🏙️ State-wise PT Comparison — Your Salary: ₹30,000/month Annual PT for Male employee

State	Method	Your Annual PT	Max Annual PT	Special Rule

📋 Key PT Rules — All States

Constitutional max: ₹2,500/year (Article 276)
Applicable in: 21 states + 1 UT
NOT applicable in: Delhi, UP, Haryana, Punjab, Rajasthan, Goa
Deductible under: Section 16(iii) — Old Regime only
Employer responsibility: Deduct & deposit by 30th of next month
Annual return: By April 30
Late fee: ₹100–₹300/month + 1.25% interest
Senior citizen exemption: 65+ (60+ in Karnataka)

⚡ State-specific Highlights

Maharashtra women: Exempt up to ₹25,000/month
Maharashtra special: ₹300 in February/March
Karnataka revised: ₹25,000 threshold (Apr 2025)
Karnataka special: ₹300 in February
Kerala: Half-yearly payment (not monthly)
Bihar: Annual slab (not monthly)
Andhra/Telangana: Same slabs, ₹150–₹200/month
Tamil Nadu: ₹208/month + ₹212 last month

On this page

What is Professional Tax?
State-wise PT Slabs
Maharashtra PT Rates
Karnataka PT Rates
Exemptions
Income Tax Deduction
States with No PT
FAQ

What is Professional Tax?

Professional Tax (PT) is a state-level direct tax levied under Article 276(2) of the Indian Constitution on individuals earning income through employment, business, or profession. Despite the name, it is not limited to "professionals" — it applies equally to all salaried employees. It is the only tax in India for which the Constitution itself caps the maximum amount: no state can levy more than ₹2,500 per year per person.

PT is currently applicable in 21 states and 1 Union Territory (Puducherry). The employer is responsible for deducting PT from employees' monthly salaries and remitting it to the state government. Self-employed professionals and business owners pay directly through a PT Enrollment Certificate (PTEC).

State-wise Professional Tax Slabs — FY 2025-26

State	Min. Threshold	Monthly PT	Annual PT (Max)	Special Rule
Maharashtra	₹7,500/month (Male)	₹175–₹200	₹2,500	₹300 in Feb/Mar · Women exempt ≤₹25K
Karnataka	₹25,000/month	₹200	₹2,500	₹300 in February (revised Apr 2025)
West Bengal	₹10,000/month	₹110–₹208	₹2,500	₹212 in last month
Andhra Pradesh	₹15,001/month	₹150–₹200	₹2,400	3 slabs
Telangana	₹15,001/month	₹150–₹200	₹2,400	Same as AP
Tamil Nadu	₹21,001/month	₹208	₹2,500	₹212 in last month
Gujarat	₹12,000/month	₹200	₹2,400	Flat ₹200 above threshold
Kerala	₹2,000/half-year	Half-yearly	₹2,500	6-monthly payment
Madhya Pradesh	₹18,751/month	₹208	₹2,500	₹212 in last month
Bihar	₹3,00,001/year	Annual slab	₹2,500	Annual payment, not monthly

Maharashtra Professional Tax — FY 2025-26

Maharashtra has India's most detailed PT structure with separate slabs for male and female employees. The annual target is ₹2,500, collected over 12 months with a higher deduction in one special month.

Monthly Salary	Male PT/Month	Female PT/Month
Up to ₹7,500	Nil	Nil
₹7,501 – ₹10,000	₹175	Nil
₹10,001 – ₹25,000	₹200 (₹300 in Feb/Mar)	Nil
Above ₹25,000	₹200 (₹300 in Feb/Mar)	₹200 (₹300 in Feb/Mar)

Karnataka Professional Tax — FY 2025-26 (Revised April 2025)

Karnataka revised its PT structure effective April 1, 2025. The threshold was raised significantly, and the special February rate was introduced to hit the ₹2,500 annual cap.

Monthly Salary	Monthly PT	Annual Total
Up to ₹24,999	Nil	₹0
₹25,000 and above	₹200 (₹300 in February)	₹2,500

Professional Tax Exemptions

Exemption Category	States	Condition
Senior Citizens (65+)	All PT states	Age 65+ (60+ in Karnataka)
Persons with Disability	All PT states	Permanent disability ≥40%
Armed Forces Personnel	All PT states	Serving Central/State Armed Forces
Women (income limit)	Maharashtra	Monthly salary ≤₹25,000
Parents of Disabled Children	Maharashtra, Tamil Nadu, others	With documentary proof
Badminton/Other Sports Champions	Select states	International award winners

Professional Tax and Income Tax — Section 16(iii)

Professional tax paid during the year is allowed as a full deduction from gross salary under Section 16(iii) of the Income Tax Act when computing income from salaries. This is an automatic deduction — you don't need to separately claim it. Important: this deduction is only available under the Old Tax Regime. Under the New Tax Regime (Section 115BAC), Section 16(iii) deduction for professional tax is not available.

Annual PT Paid	IT Saved @ 20% Slab	IT Saved @ 30% Slab	Net Effective PT Cost (30%)
₹1,200	₹240	₹360	₹840
₹2,400	₹480	₹720	₹1,680
₹2,500 (max)	₹500	₹750	₹1,750

States Where Professional Tax is NOT Applicable

Professional tax is not levied in the following states and Union Territories: Delhi, Uttar Pradesh, Haryana, Punjab, Rajasthan, Goa, Himachal Pradesh, Uttarakhand, Jammu & Kashmir (now UT), Arunachal Pradesh, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep, Mizoram, and Nagaland. Employees in these states have no PT deducted and cannot claim Section 16(iii) deduction since nothing is paid.

Frequently Asked Questions

Professional Tax (PT) is a state-level direct tax levied under Article 276 of the Constitution on individuals earning through employment, trade, or profession. It applies to all salaried employees (deducted by employer), self-employed professionals, and business owners in 21 states. States like Delhi, UP, Haryana, Punjab, Rajasthan, and Goa do not levy it.

The constitutional maximum is ₹2,500 per year per person under Article 276(2). No state can exceed this. Most high-income states hit this cap by charging ₹200/month for 11 months and ₹300 in the 12th (Maharashtra in February/March, Karnataka in February).

Yes — but only under the Old Tax Regime. PT is deductible from gross salary under Section 16(iii) of the Income Tax Act. This deduction is NOT available under the New Tax Regime (Section 115BAC). At a 30% slab, ₹2,500 annual PT saves ₹750 in income tax, making the effective net cost only ₹1,750.

Common exemptions: individuals aged 65+ (60+ in Karnataka), persons with permanent disability (40%+), members of the Armed Forces, parents of mentally/physically challenged children, and women in Maharashtra earning ≤₹25,000/month. Proof of eligibility must be provided to the employer or state authority.

Maharashtra has gender-specific slabs. Women earning up to ₹25,000/month are completely exempt from professional tax — a higher threshold than men (₹10,000). Women earning above ₹25,000 pay ₹200/month (₹300 in the special month). This was introduced to promote women's workforce participation.

Karnataka levies ₹200/month for 11 months and ₹300 in February to total exactly ₹2,500/year — the constitutional maximum. Maharashtra does the same in February/March. This is a common design across states to maximise collection while staying within the ₹2,500 annual cap.

For salaried employees, the employer deducts PT from monthly salary and deposits it with the state government using a Professional Tax Registration Certificate (PTRC). The deduction appears on the salary slip and Form 16. Self-employed individuals pay directly using a Professional Tax Enrollment Certificate (PTEC).

Late payment typically attracts ₹100–₹300 per month as late fee, plus 1–1.25% interest per month on outstanding amounts. West Bengal and Karnataka can levy penalties up to 50% of the total tax due. Employers face stricter action for non-deduction. Timely payment by the 30th of the following month is mandatory in most states.