Professional tax is a small state-level tax on salaried income and professions. Rates and slabs are set by each state, and employers deduct it from salary each month. Here is how it works.
Professional tax is a tax levied by state governments in India on income earned from salary, a profession, a trade or employment. Despite the name, it applies to salaried employees as well as professionals.
For salaried employees, the employer deducts professional tax from monthly salary and pays it to the state. The maximum professional tax any state can charge is ₹2,500 per person per year, a limit set by the Constitution.
Each state sets its own professional tax slabs based on monthly salary, so the exact amount depends on where you work, not where you live. States such as Maharashtra, Karnataka, West Bengal, Tamil Nadu, Telangana and Gujarat levy it, while several states and union territories do not levy it at all.
Because slabs change from state to state and can be revised, the exact figure for your salary and state is best confirmed against the current schedule. Our compliance team maintains state-wise rates inside the calculators.
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What is professional tax in India?
Professional tax is a state-level tax on income from salary or a profession, deducted by employers from monthly salary and paid to the state government. The maximum any state can levy is ₹2,500 per person per year.
How much professional tax is deducted from salary?
It depends on your state and salary band. Each state sets its own slabs, so the monthly amount varies. The annual total is capped at ₹2,500 across all states.
Which states have professional tax?
States such as Maharashtra, Karnataka, West Bengal, Tamil Nadu, Telangana, Gujarat and several others levy professional tax. A number of states and union territories do not levy it at all.
Is professional tax deductible from income tax?
Yes. Professional tax paid is deductible from your taxable salary income under the old tax regime, which slightly reduces your income tax.
Please note: Outputs are AI-generated and can contain errors. Use them as a starting point and check anything important before you act on it.
The Take-home Salary Calculator applies state professional tax, PF and income tax to show your real in-hand pay for India.
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