Professional Tax in India — State-Wise Rates, Registration, Filing (2026)
Professional tax in India 2026: ₹2,500 yearly cap, state-wise rates for Maharashtra, Karnataka and West Bengal, states with no PT, PTEC vs PTRC. From ₹1,299.
Professional tax is a state tax on professions, trades, callings and employment, deducted by employers from salaries and paid by businesses and professionals on their own enrolment. Article 276 of the Constitution caps it at ₹2,500 per person a year, so the usual top rate is ₹200 a month with ₹300 in one month, and states such as Delhi and Haryana do not levy it at all.
Professional Tax is a state-level tax on income earned by professionals, traders, and employees. Not all states have it. In this guide, we cover state-wise rates, registration, and filing, as the position stands in October 2026 (FY 2026-27).
Professional tax at a glance
| Point | Position |
|---|---|
| Constitutional basis | Article 276: tax on professions, trades, callings and employments |
| Ceiling | ₹2,500 per person per year |
| Levied by | Each state under its own PT Act (in Tamil Nadu, by local bodies) |
| Who pays | Salaried employees (deducted by the employer) and businesses, firms, companies and professionals in their own right |
| Employer registration | PTRC (registration certificate) to deduct and deposit employees' PT |
| Own enrolment | PTEC (enrolment certificate) for the business, firm, company, director or professional |
| Not levied in | Delhi, Haryana, Uttar Pradesh, Rajasthan and some other states and UTs |
What is Professional Tax?
Professional Tax is a direct tax levied by the state government on individuals earning income from salary, profession, trade, or calling. It is governed by the respective state's Professional Tax Act. Maximum cap: ₹2,500/year (Article 276(2) of the Constitution of India).
States That Have Professional Tax
- Maharashtra
- Karnataka
- West Bengal
- Tamil Nadu
- Andhra Pradesh
- Telangana
- Gujarat
- Kerala
- Madhya Pradesh
- Assam
- Jharkhand
- Bihar
- Meghalaya
- Manipur
- Mizoram
- Nagaland
- Tripura
- Sikkim
- Puducherry
Check before you deduct in Odisha, Punjab, Chhattisgarh and Goa. Published sources disagree on the current position in these states (Odisha is reported to have abolished PT from April 2026), so we confirm with the state department before setting up deductions there.
States That Do NOT Have Professional Tax
- Delhi
- Haryana
- Rajasthan
- Uttar Pradesh
- Uttarakhand
- Himachal Pradesh
- Jammu & Kashmir
State-Wise Professional Tax Rates (Salary)
| State | Monthly Salary | PT / Month |
|---|---|---|
| Maharashtra (men) | Up to ₹7,500 | Nil |
| Maharashtra (men) | ₹7,501 – ₹10,000 | ₹175 |
| Maharashtra (men) | Above ₹10,000 | ₹200 (₹300 in February) |
| Maharashtra (women) | Up to ₹25,000 | Nil |
| Maharashtra (women) | Above ₹25,000 | ₹200 (₹300 in February) |
| Karnataka | Below ₹25,000 | Nil |
| Karnataka (from 1 April 2025) | ₹25,000 or more | ₹200 (₹300 in February), ₹2,500 a year |
| West Bengal | Up to ₹10,000 | Nil |
| West Bengal | ₹10,001 – ₹15,000 | ₹110 |
| West Bengal | ₹15,001 – ₹25,000 | ₹130 |
| West Bengal | ₹25,001 – ₹40,000 | ₹150 |
| West Bengal | Above ₹40,000 | ₹200 |
Other states, including Tamil Nadu, Gujarat, Andhra Pradesh and Telangana, have their own slabs and revise them from time to time; Tamil Nadu's is collected half-yearly by the local body. We apply the slab in force on the date of deduction rather than a figure from an old table. To see PT alongside PF and TDS on a pay slip, try our salary calculator; for monthly deductions handled end to end, see payroll management, and for Kolkata and the rest of the state, West Bengal professional tax registration.
Worked example (Karnataka): an employee earning ₹40,000 a month pays ₹200 for eleven months and ₹300 in February: 11 × ₹200 + ₹300 = ₹2,500, exactly the Article 276 ceiling. A colleague on ₹22,000 a month pays nothing.
Registered in West Bengal? PTRC, PTEC, the 21-day deposit rule and the 31 July annual deadline are covered in full in our West Bengal professional tax guide — including why directors and partners need their own PTEC.
PTEC vs PTRC: which one you need
| Point | PTEC (Enrolment Certificate) | PTRC (Registration Certificate) |
|---|---|---|
| For | The business, firm, company or professional paying its own PT | An employer deducting PT from employees' salaries |
| Tax paid | A fixed yearly amount for the entity or person | PT deducted from each employee, deposited by the employer |
| Needed if you have no employees? | Yes, where the state levies PT on your trade or profession | No |
Professional Tax Registration Process (Maharashtra)
Step 1: Get PTEC (Enrollment Certificate)
Apply for the Professional Tax Enrolment Certificate (PTEC) on the Maharashtra State Tax portal. It covers the PT the business itself pays. Required: PAN of the business, constitution documents and address proof of the place of business.
Step 2: Get PTRC (Registration Certificate)
Apply for Professional Tax Registration Certificate (PTRC) — authorises you to deduct PT from employees. Required: PAN, address, salary register, authorised signatory details.
Step 3: File Returns + Pay
Deposit the PT deducted and file returns on the state portal. In Maharashtra the payment and return frequency depends on the employer's yearly PT liability, so we set the schedule when we register you. Our PTEC and PTRC registration service handles both certificates together.
Professional Tax for Self-Employed / Professionals
Self-employed professionals (doctors, lawyers, CAs, consultants) must pay professional tax on their own income. The amount varies by state but cannot exceed ₹2,500 a year. Payment: half-yearly or annual depending on the state.
Income-tax deduction for professional tax
For FY 2025-26 (AY 2026-27), professional tax paid by a salaried employee is deductible from salary under Section 16(iii) of the Income-tax Act, 1961, up to the amount actually paid. The deduction is available only in the old regime: Section 115BAC(2) disallows Section 16(iii) for anyone in the new (default) regime. Businesses and professionals claim the PT they pay as a business expense.
Common professional tax mistakes
- Registering for PTRC but not PTEC, so the business's own yearly PT goes unpaid.
- Deducting PT in a state that does not levy it because the payroll template was copied from another office.
- Using a slab from an old table. Karnataka's threshold, for example, is now ₹25,000 a month, not the ₹15,000 still seen in many payroll setups.
- Claiming PT under Section 16(iii) in the new tax regime, where it is not allowed.
- Missing the February adjustment in states that collect ₹300 in one month to reach ₹2,500.
Frequently Asked Questions
Q: Is professional tax refundable if you work in 2 states?
A: Professional tax is generally deducted in the state where you are employed, by the employer registered there. If two employers in two states both deduct PT for the same months, take it up with the employer who deducted it wrongly; the Article 276 ceiling of ₹2,500 a year applies per person.
Q: What is the difference between professional tax and TDS?
A: TDS is income tax collected in advance for the central government, at rates that rise with income, on salary, rent, fees and other payments. Professional tax is a state levy on the profession or employment itself, a flat slab amount capped at ₹2,500 a year. Both appear on the pay slip, but they go to different governments and are filed in different returns.
Q: Does a partnership firm or LLP pay professional tax?
A: In states that levy PT on firms, yes. The firm or LLP takes its own enrolment (PTEC) and pays the yearly amount, and registers separately (PTRC) once it deducts PT from employees. Some states, West Bengal for example, also expect partners or directors to enrol in their own right. In Delhi and Haryana there is no PT for anyone.
Q: Which states levy professional tax in 2026?
A: Among others, Maharashtra, Karnataka, West Bengal, Tamil Nadu, Gujarat, Telangana, Andhra Pradesh, Kerala, Madhya Pradesh and Assam, plus several north-eastern states. Delhi, Haryana, Uttar Pradesh and Rajasthan do not. Each state sets its own slabs and dates within the ₹2,500 Article 276 cap, so register in every state where you have staff or a place of business.
Q: Why is ₹300 deducted in February?
A: To reach the ₹2,500 annual ceiling exactly. Maharashtra and Karnataka collect ₹200 a month for eleven months and ₹300 in February: 11 × ₹200 + ₹300 = ₹2,500. If payroll deducts only ₹200 in February, the employer falls ₹100 short for each employee and the shortfall is raised as a demand later.
Q: What is the maximum professional tax in India?
A: ₹2,500 per person per year. Article 276 of the Constitution caps the total any state, municipality or local body can levy on one person for professions, trades, callings and employment. That is why many states charge ₹200 a month and ₹300 in one month: 11 × ₹200 + ₹300 = ₹2,500.
Q: Is professional tax applicable in Delhi and Haryana?
A: No. Neither Delhi nor Haryana levies professional tax, so employers there should not deduct it. If your company has offices in other states, register and deduct PT only for employees working in states that levy it, under each state's own slabs.
Q: What does PTEC mean in professional tax?
A: PTEC is the Professional Tax Enrolment Certificate. It is taken by the business, firm, company, director or professional who pays PT in their own right. PTRC, the Registration Certificate, is the employer's separate registration to deduct PT from employees' salaries and deposit it. Many businesses need both.
Q: Can I claim professional tax under the new tax regime?
A: No. Section 115BAC(2) of the 1961 Act disallows the Section 16(iii) deduction for professional tax in the new regime, which is the default. Under the old regime, a salaried employee can deduct the PT actually paid during the year from salary income.
Q: What is the penalty for non-payment of PT?
A: Each state sets its own interest and penalty for late registration, late payment and late returns, and they can run for years before a demand arrives. Because the rules differ, check the state Act or ask us; we review the position before registering a business that should have enrolled earlier.
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