Professional tax in India: how it works by state
Professional tax is a state tax, so the rules differ by where an employee works. This guide explains the common patterns and how to check your state.
Updated 3 October 2026 · Published 3 October 2026
The common rules
- The Constitution caps professional tax at ₹2,500 per person per year.
- Each state sets its own slabs. Most measure monthly salary. Some measure half-yearly or yearly salary.
- Some states collect the amount spread over the year; others collect it in one or two instalments.
- Some states charge a higher amount in one month so that the yearly total is round. Maharashtra and Karnataka do this in February, and Madhya Pradesh in March.
- Maharashtra applies a separate slab to women.
States that do not collect it from salary
Delhi, Haryana, Uttar Pradesh, Rajasthan, Himachal Pradesh, Uttarakhand and Goa do not levy professional tax. Chhattisgarh exempts salaried employees.
Where you work decides it
Professional tax follows the employee’s place of work, not the company’s head office. A company with staff in several states must register and file in each one that levies it, with that state’s due dates.
Registration and returns
- Employers register for professional tax as an employer and, in many states, also as a person liable to pay it for themselves.
- Filing frequency varies: some states want monthly payment, some quarterly, half-yearly or yearly.
- Maharashtra frequency depends on the size of the employer, so check the current notification.
Check your state before you file
States revise slabs and due dates, and Tamil Nadu and Kerala also differ by local body. Treat any table, including ours, as a starting point and confirm against your state’s current notification. Use the calculator to see the figure AdviHR will deduct for a state and salary.
Try it with your numbers
Professional tax calculator, free, no sign-up.
Frequently asked questions
What is the maximum professional tax in India?
₹2,500 per person per year.
Is professional tax deducted by the employer?
Yes. The employer deducts it from salary and pays it to the state.
Which month is professional tax higher in Maharashtra?
February, so the year totals ₹2,500 for higher salaries.
Does an employee in Delhi pay professional tax?
No. Delhi does not levy it on salary.
Sources
- Article 276, Constitution of India
- State professional tax acts and notifications (check each state)
How sure are we? These figures use the same rules AdviHR payroll applies. We publish what has been checked against an official source and what has not, on the statutory accuracy page.
General information, not legal or tax advice. Confirm against the official notification and your adviser before acting.
Let payroll apply these rules for you.
AdviHR keeps statutory rules by financial year and produces the files you upload to the portals.