Professional Tax 2026

“Professional Tax” is a direct tax levied by concerned State Governments of India on the remuneration of salaried individuals working and earning an income per month. It can be seen on payslips. Tax slabs vary from state to state, and the exact liability depends on the employee’s income slab. Professional tax for a month shall not exceed ₹2,500. This page will show the exact quantum, state-wise.

What is Professional Tax?
The respective state governments in India levy professional tax on income from a profession or employment. Professionals earning income from salary or other practices, such as lawyers, teachers, doctors and chartered accountants, may be required to pay professional tax. For salaried and wage earners, the employer deducts the tax from salary or wages and deposits it with the State Government. Other individuals pay the tax themselves. The calculation and amount vary by state, subject to the applicable statutory limit of ₹2,500.

Professional Tax Registration and Returns
Professional Tax Registration is generally required within 30 days of employing staff or, for professionals, within 30 days of starting the practice. The tax must be deducted from salary or wages and paid to the applicable State tax department. If an assessee has more than one place of work, separate applications may be required for each jurisdiction. Employers with more than 20 employees must generally pay within 15 days from the end of the month; employers with fewer than 20 employees generally pay quarterly, by the 15th of the month following the quarter, subject to state-specific rules.

Employees Engaged During National and Festival Holidays
Where employees are engaged during national or festival holidays, they may, subject to the applicable state law, be entitled to either double wages or wages for that day together with a substituted holiday with wages on another day.

Professional Tax Applicable States Across India
The states that impose professional tax in India are listed below. State-wise slabs, exemptions, registration requirements and filing rules may differ, so the applicable State Government notification should be checked for the current position.