What is the Professional Tax?
Professional tax is a state-level levy on salaried and professional income, deducted by your employer and paid to the state government. It is capped by the Constitution at ₹2,500 a year.
Not every state levies it — Delhi, Uttar Pradesh, Haryana and several others charge none, while Maharashtra, Karnataka, West Bengal and Tamil Nadu do.
Formula & worked example
Slabs are set independently by each state:
Karnataka: ₹200/month above ₹25,000
Tamil Nadu: collected half-yearly on average half-yearly income — Greater Chennai Corporation charges nil up to ₹21,000, then ₹100, ₹235, ₹510, ₹760 and ₹1,095 per half-year, i.e. at most ₹2,190 a year
Worked example: ₹60,000 monthly salary in Maharashtra attracts ₹200 a month, with ₹300 deducted in February — ₹2,500 a year, the constitutional maximum. At a 30% slab the deduction saves about ₹780 of income tax in the old regime.
How to use this professional tax calculator
- Enter your monthly gross salary.
- Select your state of employment, not residence.
- The annual figure accounts for Maharashtra's higher February deduction. Tamil Nadu collects half-yearly, so its monthly figure here is the averaged equivalent.
- Professional tax is deductible from salary income in the old tax regime.
Smart tips
- The constitutional cap is ₹2,500 a year across all states — no state can charge more. Slabs also vary by local body within a state, so treat these as the common urban rates rather than a universal schedule.
- Professional tax is deductible under Section 16(iii) in the old regime, but not in the new regime.
- Employers deduct and deposit it; self-employed professionals must register and pay directly.
- Delhi, UP, Haryana, Rajasthan and several other states levy no professional tax at all.
Frequently asked questions
What is professional tax?
A state-level tax on salaried and professional income, deducted monthly by employers, capped at ₹2,500 a year by the Constitution.
Which states have no professional tax?
Delhi, Uttar Pradesh, Haryana, Rajasthan, Uttarakhand and several others do not levy it.
Is professional tax deductible from income tax?
Yes, under Section 16(iii) in the old regime. The new regime does not allow it.
Who pays professional tax if I am self-employed?
You register with the state authority and pay it directly, typically annually rather than monthly.
Want the theory behind the numbers? Browse the Money Blog for worked guides.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 15 Oct 2026. Sources: Maharashtra GST Department — Profession Tax Act 1975 rate schedule: ₹200 a month above ₹10,000, ₹300 in February, ₹2,500 a year (as on 31 Mar 2025). How we check these numbers.