Professional tax is set by each state, so the same salary can attract ₹2,500 a year in Karnataka, ₹1,200 in West Bengal and nothing in Delhi. This guide compares the professional tax slab rules across states, explains the professional tax in Karnataka, West Bengal, Gujarat and Tamil Nadu in practical terms, and covers due dates and the income-tax deduction. Whatever the state, the professional tax limit is ₹2,500 a year per person under Article 276(2) of the Constitution.
Why does professional tax differ from state to state?
Each state levies professional tax under its own Act and sets its own slabs, within the ₹2,500 yearly cap. States also read the salary differently: most use monthly salary, Tamil Nadu and Kerala use half-yearly income, and states such as Madhya Pradesh and Bihar use annual salary.
That difference in basis matters when you set up payroll:
- Monthly states (Karnataka, West Bengal, Gujarat, Telangana, Andhra Pradesh, Assam and others) deduct a fixed amount each month. Some add a higher amount in one month so the year totals ₹2,500.
- Half-yearly states (Tamil Nadu, Kerala) collect through local bodies for April to September and October to March.
- Annual-slab states (Madhya Pradesh, Bihar, Jharkhand, Meghalaya, Manipur) read the slab on yearly salary. Madhya Pradesh spreads it monthly with a higher amount in March; Bihar's employer deducts it once, for September.
Delhi, Uttar Pradesh, Haryana, Rajasthan and, from 1 April 2026, Odisha levy none on salaries. Use the state where the employee works, not where the company is registered.
Professional tax slab comparison: ₹30,000 a month across states
At a gross salary of ₹30,000 a month, yearly professional tax ranges from nil to ₹2,500. The figures below come from the calculator for one employee.
| State | Basis | Tax at ₹30,000 a month | Yearly total |
|---|---|---|---|
| Karnataka | Monthly | ₹200 (₹300 in February) | ₹2,500 |
| Maharashtra | Monthly | ₹200 (₹300 in February) | ₹2,500 |
| Tamil Nadu (Greater Chennai) | Half-yearly | ₹1,250 a half-year | ₹2,500 |
| Gujarat | Monthly | ₹200 | ₹2,400 |
| Telangana | Monthly | ₹200 | ₹2,400 |
| Assam | Monthly | ₹208 | ₹2,496 |
| Madhya Pradesh | Annual | ₹166 (₹174 in March) | ₹2,000 |
| West Bengal (from 1 October 2026) | Monthly | ₹100 | ₹1,200 |
| Bihar | Annual | Once, for September | ₹1,000 |
| Delhi, Odisha | None | Nil | Nil |
Example. A made-up company, Bluepeak Foods Private Limited, has ten employees on ₹30,000 a month: four in Bengaluru, three in Kolkata and three in Gurugram. Each month it deducts ₹800 for Karnataka (₹1,200 in February) and ₹300 for West Bengal, and nothing in Haryana. That is ₹10,000 a year for Karnataka and, at the rates from 1 October 2026, ₹3,600 for West Bengal, each paid under the company's employer registration in that state.
Karnataka professional tax: the ₹25,000 threshold
Karnataka charges nothing on salaries below ₹25,000 a month and ₹200 a month from ₹25,000, with ₹300 in February, so ₹2,500 a year. The nil threshold has been ₹25,000 since 1 April 2023, and the current rates apply under the Karnataka Act as amended in 2025, from 1 April 2025.
The cut-off is sharp: an employee on ₹24,999 pays nothing, while one on ₹25,000 pays the full ₹2,500 a year. When an increment takes a salary across ₹25,000 mid-year, deduction starts from that month's salary. Check February payroll every year, because the ₹300 deduction is easy to miss in software set to a flat ₹200.
How the West Bengal change from 1 October 2026 affects payroll
West Bengal replaced its schedule for salary earners from 1 October 2026, under the West Bengal Finance Act 2026 and Notification 1607-F.T. dated 16 September 2026. Salaries up to ₹20,000 a month now pay nothing, and the top rate is ₹208 a month above ₹1,00,000.
- Apply the new slabs to October 2026 salaries onwards. September 2026 and earlier months stay on the earlier schedule, which the calculator does not cover.
- The top rate of ₹208 a month comes to ₹2,496 a year, just inside the ₹2,500 limit.
- An employee on ₹18,000 a month pays nothing under the new schedule, and one on ₹45,000 pays ₹140 a month.
Professional tax in Gujarat and Tamil Nadu: what to watch
Gujarat charges ₹200 a month on salaries above ₹12,000 (₹2,400 a year) under its 1976 Act. Tamil Nadu has no single state rate: local bodies levy it on half-yearly income, and Greater Chennai Corporation revised its rates from 1 October 2024.
The Gujarat Commercial Tax Department's rate schedule, in force from 1 April 2022, charges nothing on salaries up to ₹12,000, so an employee on exactly ₹12,000 pays nil. In Tamil Nadu, multiply monthly salary by six to find the slab. A Chennai employee on ₹8,000 a month has half-yearly income of ₹48,000 and pays ₹930 a half-year. Other corporations and municipalities charge different amounts, so check with the local body where the office is.
Is professional tax deductible from income tax?
Yes, but only under the old tax regime. Section 19 of the Income-tax Act 2025 allows the full amount paid as tax on employment under Article 276(2) as a deduction from salary (section 16 of the 1961 Act). The new tax regime, which applies unless the employee opts out, does not allow it.
The Income Tax Department lists this deduction at Sl. No. 1 of the table in section 19, and section 202(2) excludes it when tax is computed under the new regime. For an employee who opts out, ₹2,500 of professional tax reduces taxable salary by ₹2,500. Under the department's guidance on the 1961 Act, tax that the employer pays on the employee's behalf is first added to salary as a perquisite and then allowed as a deduction.
Registration, payment and due dates by state
An employer registers with each state where it pays salaries, deducts professional tax and pays it with a return. Due dates vary: Telangana and Andhra Pradesh monthly by the 10th, Maharashtra by the 15th for monthly filers, Meghalaya monthly by the 28th, and Kerala half-yearly by 31 August and the last day of February.
Other patterns from the state Acts:
- Sikkim uses quarterly returns.
- Jharkhand has an annual return in Form JPT-203, due by 31 October.
- In Maharashtra, employers hold a registration (PTRC) for salaries and an enrolment (PTEC) for the business itself; the Maharashtra Professional Tax Calculator covers both.
Several of these figures come from compliance databases that cite the state Acts rather than the state portals, so confirm the current due date with the state tax department before you file.
Common mistakes when deducting professional tax
Most errors come from applying one state's rule everywhere. Check these before the next payroll run.
- Using the company's registered state instead of the state where the employee works.
- Deducting in Odisha for April 2026 onwards. The Odisha Finance Department has notified a Repeal Ordinance dated 21 April 2026, which ends the tax from 1 April 2026 while dues for earlier periods can still be recovered. An ordinance must later be replaced by an Act of the Assembly, so check that page for the current position.
- Applying the new West Bengal slabs to September 2026 salary.
- Treating Greater Chennai Corporation rates as the rate for all of Tamil Nadu.
- Reading monthly salary against an annual-slab table in Madhya Pradesh or Bihar.
- Assuming Mizoram, Puducherry, Punjab or Chhattisgarh rates without checking; the calculator leaves them out because the sources conflict.
Professional tax is one of several payroll deductions. Run the PF and ESI calculator for those deductions, and use the business registration checklist to see every registration a new office triggers.
How Ofin can help with professional tax
Ofin handles professional tax registration, including PTRC and PTEC in Maharashtra, from ₹7,899 with the government fee included, and explains the return and payment cycle for your state. See professional tax registration.
