Professional Tax in India 2026 — State-wise Rates, Exemptions, and Filing
Professional Tax (PT) is a state-level tax levied on salaried employees and self-employed professionals. It is deductible from your income under Section 16(iii) of the Income Tax Act. Here is the complete guide for 2026.
What is Professional Tax?
Professional Tax is levied by state governments on individuals earning income from employment, profession, trade, or calling. Despite the name, it applies to all salaried employees — not just professionals.
Key facts:
- Maximum PT in any state: ₹2,500 per year
- Deductible under Section 16(iii) of the Income Tax Act
- Available under both old and new tax regimes
- Employer deducts PT from salary and deposits with the state government
States That Levy Professional Tax
Not all states levy Professional Tax. States that do include:
- Karnataka
- Maharashtra
- Tamil Nadu
- Andhra Pradesh
- Telangana
- West Bengal
- Gujarat
- Madhya Pradesh
- Assam
- Meghalaya
- Odisha
- Sikkim
States that do NOT levy PT: Delhi, Rajasthan, Uttar Pradesh, Haryana, Punjab, Himachal Pradesh, Uttarakhand, Bihar, Jharkhand, Chhattisgarh.
State-wise Professional Tax Rates
Karnataka
| Monthly Salary | Monthly PT |
|---|---|
| Up to ₹14,999 | Nil |
| ₹15,000 and above | ₹200 |
Annual PT: ₹2,400 (₹200 × 12 months)
Maharashtra
| Monthly Salary | Monthly PT |
|---|---|
| Up to ₹7,500 | Nil |
| ₹7,501 to ₹10,000 | ₹175 |
| ₹10,001 and above | ₹200 (₹300 in February) |
Annual PT: ₹2,500 (₹200 × 11 months + ₹300 in February)
Tamil Nadu
| Half-yearly Salary | Half-yearly PT |
|---|---|
| Up to ₹21,000 | Nil |
| ₹21,001 to ₹30,000 | ₹135 |
| ₹30,001 to ₹45,000 | ₹315 |
| ₹45,001 to ₹60,000 | ₹690 |
| ₹60,001 to ₹75,000 | ₹1,025 |
| Above ₹75,000 | ₹1,250 |
Annual PT: Up to ₹2,500
Andhra Pradesh / Telangana
| Monthly Salary | Monthly PT |
|---|---|
| Up to ₹15,000 | Nil |
| ₹15,001 to ₹20,000 | ₹150 |
| ₹20,001 and above | ₹200 |
Annual PT: Up to ₹2,400
West Bengal
| Monthly Salary | Monthly PT |
|---|---|
| Up to ₹8,500 | Nil |
| ₹8,501 to ₹10,000 | ₹90 |
| ₹10,001 to ₹15,000 | ₹110 |
| ₹15,001 to ₹25,000 | ₹130 |
| ₹25,001 to ₹40,000 | ₹150 |
| Above ₹40,000 | ₹200 |
Annual PT: Up to ₹2,400
Professional Tax for Self-Employed
Self-employed professionals must register for PT and pay it directly to the state government. The process varies by state:
Karnataka: Register on the Karnataka Commercial Taxes portal. Pay PT annually.
Maharashtra: Register on the Maharashtra GST portal. Pay PT monthly or annually.
Tamil Nadu: Register with the Commercial Tax Department. Pay PT half-yearly.
How to Claim PT Deduction in ITR
Professional Tax is deductible under Section 16(iii) of the Income Tax Act.
For salaried employees:
- PT is shown in Form 16 Part B under "Deductions under Section 16"
- It is automatically deducted in your ITR when you enter salary details
For self-employed:
- Enter PT paid in Schedule BP (Business/Profession) as a deduction
Available under both old and new tax regimes — this is one of the few deductions available in the new regime.
PT Registration for Employers
Employers must:
- Register for PT with the state government
- Deduct PT from employee salaries
- Deposit PT with the state government (monthly or quarterly)
- File PT returns (frequency varies by state)
Penalty for non-compliance: Varies by state — typically 10-25% of unpaid PT plus interest.
Frequently Asked Questions
Is Professional Tax the same in all states?
No. PT rates, slabs, and filing requirements vary by state. The maximum is ₹2,500 per year in any state.
Is PT deductible under the new tax regime?
Yes. Section 16(iii) deduction for PT is available under both old and new tax regimes.
What if I work in a state that does not levy PT?
If you work in Delhi, Rajasthan, or other states without PT, no PT is deducted from your salary. You cannot claim a PT deduction in your ITR.
Can I claim PT deduction if I work from home in a different state?
PT is based on the state where your employer is registered, not where you work from. If your employer is in Karnataka but you work from Delhi, Karnataka PT applies.
Need help with Professional Tax registration or compliance? I handle PT registration and monthly deposits starting ₹299/month. Message me on WhatsApp.
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