Tax · Free tool
Professional Tax
Some states levy "Professional Tax" — capped at ₹2,500/year by the Constitution. Monthly deduction varies by state and salary. Several states (UP, Delhi, Punjab) don't have PT.
PT is deducted by employer + paid to state govt. Capped at ₹2,500/year nationally.
How it works
Professional Tax is levied by State Governments under Article 276 of the Constitution. The maximum a state can charge is capped at ₹2,500 per year. Each state has its own slab schedule based on monthly gross salary, with the employer deducting PT before paying salary and depositing it monthly or quarterly via Form III / Form V (state-specific). It is allowable as a deduction under section 16(iii) when computing taxable salary income.
Worked example
Salary ₹50,000/month in Karnataka: PT = ₹200/month (₹2,400/year). Same salary in Maharashtra: ₹200/month for 11 months + ₹300 in February = ₹2,500/year. In Tamil Nadu it is collected half-yearly at ₹1,250 per half. Andhra and Telangana follow the same slab pattern. UP, Delhi, Punjab, Haryana, Goa and J&K do not levy PT — useful to know when comparing CTC across cities.
When to use this
- HR or payroll teams configuring a multi-state employer (eg WFH staff in Bengaluru + Hyderabad)
- Job seekers comparing CTC offers between Mumbai (PT applies) and Delhi (none)
- Freelancers and professionals checking the self-employment PT slab in their state
- Founders setting up payroll in Razorpay X, Zoho Payroll or Keka
For a deeper guide on collection cycles and Form filings, read Professional Tax India state-wise. To plan total take-home, use the CTC breakup calculator.
FAQ
States without PT?
Delhi, UP, Punjab, Haryana, Rajasthan don't levy PT. Cap is constitutional: ₹2,500/year regardless of slab.
Employee or employer pays?
Employer deducts and pays to state govt. Self-employed pay directly.
Tax deductible?
Yes — section 16(iii). Auto-deducted by employer for salaried.