Which Indian states do not charge Professional Tax?

Eight states and union territories do not levy Professional Tax: Delhi, Uttar Pradesh, Rajasthan, Uttarakhand, Haryana, Punjab, Jammu & Kashmir, and Goa. If you work in any of these states, no PT will be deducted from your salary regardless of your income level.

Professional Tax Calculator India — FY 2025-26

Q: Why does Maharashtra charge more Professional Tax in February?

Maharashtra charges ₹200/month for most months but ₹300 in February to bring the annual total to exactly ₹2,500 (the constitutional maximum). Without this adjustment, 12 months at ₹200 would total only ₹2,400. The ₹100 adjustment in February is specific to Maharashtra and appears on your February payslip.

Q: Does Professional Tax apply under the new income tax regime?

Yes. Professional Tax is levied by state governments and applies regardless of your income tax regime. Whether you choose the Old or New regime under Section 115BAC, PT is still deducted from your salary. The deduction for PT under Section 16(iii) is also available under both regimes, making it one of the few deductions allowed under the new tax regime.

Calculate your Professional Tax liability for any Indian state. Compare PT rates across Maharashtra, Karnataka, West Bengal, Tamil Nadu, Gujarat, and more. See how much you save on income tax from the PT deduction under Section 16(iii). Updated with FY 2025-26 state slab rates.

Enter your monthly salary and state to see your Professional Tax

Monthly gross salary

₹

Your gross monthly salary before deductions

State

Professional Tax rates vary by state

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How to Use This Calculator

My Professional Tax tab

Enter your monthly gross salary and select your state. The calculator shows your monthly and annual Professional Tax based on your state's slab structure. If your state does not levy PT, the result will show ₹0.

State Comparison tab

Enter a salary amount to see a side-by-side comparison of Professional Tax across all Indian states that levy PT. States without PT (Delhi, UP, Rajasthan, etc.) are listed separately. Use this to understand how your PT liability would change if you relocated.

Tax Saving on PT tab

Professional Tax is deductible from your taxable income under Section 16(iii) of the Income Tax Act. Enter your salary, state, and income tax slab rate to see the actual tax you save. At the 30% slab, a ₹2,500 PT deduction saves you ₹750 in income tax plus ₹30 in cess.

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The Formula

Professional Tax is a fixed-amount tax based on salary slabs, not a percentage of income. The calculation is straightforward:

Monthly PT Calculation:
1. Determine your gross monthly salary
2. Look up your state's PT slab table
3. Monthly PT = fixed amount for your slab

Annual PT Calculation:
Annual PT = Monthly PT × 12
(Some states like Maharashtra adjust February to cap at &rupee;2,500/year)

Constitutional Cap:
Maximum PT = &rupee;2,500/year (Article 276(2) of the Constitution)

Tax Saving from PT Deduction:
Tax saved = Annual PT × Income tax slab rate
Cess saved = Tax saved × 4%
Total saving = Tax saved + Cess saved

Example (30% slab, Maharashtra):
Tax saved = &rupee;2,500 × 30% = &rupee;750
Cess saved = &rupee;750 × 4% = &rupee;30
Total saving = &rupee;780
Effective PT cost = &rupee;2,500 − &rupee;780 = &rupee;1,720/year

Unlike income tax which uses percentage-based slabs, Professional Tax uses fixed-amount slabs. Once your salary crosses a threshold, you pay a fixed amount regardless of how much higher your salary is within that slab.

Example

Rahul — Mumbai-based IT professional, &rupee;75,000/month salary

Rahul works at a tech company in Mumbai, Maharashtra. His gross monthly salary is &rupee;75,000. He wants to know his Professional Tax liability and how much he saves on income tax.

Step 1: Determine the applicable PT slab

Monthly salary&rupee;75,000

StateMaharashtra

Applicable slabAbove &rupee;10,000

Monthly PT&rupee;200

Step 2: Calculate annual PT

PT for 11 months (Apr-Jan)&rupee;200 × 11 = &rupee;2,200

PT for February (adjusted)&rupee;300

Total annual PT&rupee;2,500

Step 3: Calculate tax saving (30% slab)

PT deduction from salary&rupee;2,500 (Section 16(iii))

Tax saved (30% of &rupee;2,500)&rupee;750

Cess saved (4% of &rupee;750)&rupee;30

Total saving&rupee;780

Effective PT cost&rupee;2,500 − &rupee;780 = &rupee;1,720/year

Rahul pays &rupee;2,500/year in Professional Tax, but after the tax deduction benefit at the 30% slab, his effective cost is only &rupee;1,720/year (about &rupee;143/month).

FAQ

What is Professional Tax and who has to pay it? ▼

Professional Tax (PT) is a state-level tax levied on salaried employees, self-employed professionals, and traders by state governments in India. It is deducted by your employer from your salary every month and deposited with the state government. Not all states levy PT — Delhi, Uttar Pradesh, Rajasthan, Uttarakhand, Haryana, Punjab, Jammu & Kashmir, and Goa do not charge Professional Tax. The tax is governed by the respective state's Profession Tax Act and is capped at &rupee;2,500 per year by Article 276(2) of the Indian Constitution.

Is Professional Tax deductible from income tax? ▼

Yes. Professional Tax paid during the financial year is fully deductible from your gross salary under Section 16(iii) of the Income Tax Act, 1961. This deduction is available under both the Old and New income tax regimes. It reduces your taxable income, which means the actual cost of PT is lower than the amount deducted. For example, if you are in the 30% tax slab and pay &rupee;2,500 PT per year, you save &rupee;750 in income tax plus &rupee;30 in cess, making the effective cost only &rupee;1,720.

Why does Maharashtra charge more in February? ▼

Maharashtra's PT structure charges &rupee;200/month for most months, but &rupee;300 in February. This is done to bring the annual total to exactly &rupee;2,500 (the constitutional maximum). Without this adjustment, 12 months at &rupee;200 would total only &rupee;2,400. By charging &rupee;300 in the last month of the financial year (February, since the Maharashtra PT year runs March to February), the state collects the full &rupee;2,500 allowed under Article 276(2). This &rupee;100 adjustment in February is specific to Maharashtra and is reflected in your February payslip.

Which states have the highest and lowest Professional Tax? ▼

The maximum Professional Tax any state can charge is &rupee;2,500/year (constitutional cap). Maharashtra collects the full &rupee;2,500 for salaries above &rupee;10,000/month. Most other states like Karnataka, Gujarat, and Andhra Pradesh cap at &rupee;2,400/year (&rupee;200/month × 12). West Bengal has a more graduated structure with lower amounts for mid-range salaries. Tamil Nadu collects half-yearly and reaches the &rupee;2,500 cap for salaries above &rupee;75,000/month. Eight states/UTs — Delhi, Uttar Pradesh, Rajasthan, Uttarakhand, Haryana, Punjab, Jammu & Kashmir, and Goa — do not levy PT at all.

Does Professional Tax apply under the new income tax regime? ▼

Yes. Professional Tax is levied by state governments and is independent of your income tax regime choice. Whether you opt for the Old regime or the New regime under Section 115BAC, your employer will still deduct PT from your salary based on your state's rates. Additionally, the deduction for PT under Section 16(iii) is allowed under both regimes. This makes PT one of the few deductions available even under the new tax regime, which otherwise disallows most Chapter VI-A deductions (like 80C, 80D, etc.).

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