01
All-States Summary Table
One table with all 18 states: max PT per month, annual cap, payment frequency, and the applicable Act. See at a glance which states charge Rs 200/month flat and which use graduated slabs.
Petpooja Payroll
Professional Tax Slab Chart: State-wise PT Rates for Indian Employers (Free PDF)
Professional Tax is one of those deductions everyone knows about but nobody can quote the exact slabs for. Every state has different rates, different thresholds, different due dates. Maharashtra exempts women entirely. Karnataka charges a flat Rs 200. Tamil Nadu collects half-yearly. This guide puts all 18 states in one place. Updated May 2026.
- PT slabs for all 18 states that levy Professional Tax, plus 12 states that don't
- Exemptions, due dates, and applicable Acts for every state
- Employer compliance checklist with registration and filing requirements
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Petpooja presents
Professional Tax Slab Reference Guide
State-wise for Indian Employers
18
States · PDF reference guide
FY 2025-26
What's Inside
Everything you need to handle PT across all Indian states.
02
States That Don't Levy PT
12 states and UTs where Professional Tax doesn't apply at all. If your employees only work in Delhi, UP, Rajasthan, Haryana, Punjab, or Goa, you can skip PT entirely.
03
State-by-State Slab Tables
Detailed salary slab breakdowns for Maharashtra, Karnataka, West Bengal, AP, Telangana, Gujarat, Tamil Nadu, Kerala, MP, Odisha, and the northeastern states. Each with the exact Act reference. If you need to understand how PT fits into the larger salary structure in India, that guide covers every component.
04
Exemptions by State
Maharashtra's women exemption. Disabled person exemptions. Senior citizen exemptions. Each state's rules are different. The guide flags every exemption you need to check.
05
Employer Compliance Checklist
10-item checklist covering PT registration, monthly deduction, deposit deadlines, return filing, and record-keeping. Especially useful for multi-state businesses with employees in 3 or more states.
06
PT and Income Tax Interaction
How employees can claim PT as a deduction under Section 16(iii) of the Income Tax Act. Works under both old and new tax regimes. Plus how to verify PT on your payslip and Form 16.
Why This Matters
PT Errors Are Small Amounts, Big Headaches
Professional Tax is at most Rs 2,500 per employee per year. The amount is tiny. But getting it wrong creates problems that are disproportionately painful.
Here's a situation that plays out regularly. A company in Delhi hires someone who works from their Bangalore office. The payroll team doesn't deduct PT because "we're a Delhi company." Six months later, the Karnataka Commercial Taxes department sends a notice. Now you owe back PT for every employee in that office, plus interest.
PT is based on work location, not company registration. An employee sitting in Mumbai pays Maharashtra PT even if the company is registered in Gujarat. A Hyderabad branch means Telangana PT for those employees. When you're calculating CTC to in-hand salary using our free in-hand salary calculator, PT is one of the deductions that varies by location. Miss this, and the compliance gap compounds every month.
Then there's the exemption trap. Maharashtra exempts all women from PT. A well-meaning payroll person deducts it anyway "to be safe." That's not safe. That's an incorrect deduction from the employee's gross salary. She's owed that money back.
Multi-state businesses face the most complexity. If you have employees across PF and ESI compliance states, you already know the pain of state-wise variations. PT adds another layer. Different slabs, different due dates, different filing frequencies. Maharashtra wants monthly payments. Tamil Nadu wants half-yearly. Karnataka's due date is the 20th. Gujarat's is the 15th.
This guide puts everything in one printable reference. Pin it to your HR desk. Share it with your accountant. Keep it open during payroll processing. No more Googling "Karnataka PT slab 2026" every month.
Businesses using Petpooja Payroll don't need to look up slabs at all. The system auto-applies the correct PT based on each employee's work location. But if you're running payroll manually or on spreadsheets, this guide is the next best thing.
Sample Preview
A look at what's inside the guide.
Here are sample entries from the state-wise PT slab tables:
Maharashtra: Up to Rs 7,500 = Nil. Rs 7,501 to Rs 10,000 = Rs 175/month. Above Rs 10,000 (Men) = Rs 200/month (Rs 300 in Feb) Women exempt
Karnataka: Up to Rs 15,000 = Nil. Above Rs 15,000 = flat Rs 200/month. Annual max: Rs 2,400.
West Bengal: 5 slabs from Rs 10,001 to Rs 40,000+. Max Rs 200/month for salary above Rs 40,000.
Gujarat: Starts at Rs 6,000 (lower than most states). Rs 12,000+ = Rs 200/month.
Tamil Nadu: Starts at Rs 21,001. Half-yearly payment to local municipality. Max Rs 2,500/year.
... plus AP, Telangana, Kerala, MP, Odisha, Jharkhand, Bihar, Chhattisgarh, Assam, Meghalaya, Tripura, Sikkim, and Mizoram. Every state with exact slabs, Acts, and due dates.
Key Facts
PT numbers every employer should know.
Rs 2,500
Maximum Professional Tax any state can charge per person per year. This cap is set by Article 276(2) of the Constitution of India. No state can exceed it.
Source: Constitution of India, Article 276(2)18 states
Number of Indian states that currently levy Professional Tax. 12 states and UTs (including Delhi, UP, Rajasthan, Haryana) don't levy PT at all.
Source: State government notifications, as of May 2026Section 16(iii)
The Income Tax Act section that allows employees to claim PT as a deduction from salary income. Available under both old and new tax regimes. Check your Form 16.
Source: Income Tax Act, 1961, Section 16(iii)
Common Mistakes
6 PT Compliance Mistakes Indian Employers Keep Making
01
Applying company HQ state's PT rate to all employees
PT is based on work location, not company registration. If your company is in Delhi (no PT) but an employee works from your Bangalore office, Karnataka PT applies. Each branch location needs separate PT treatment.
02
Deducting PT from women employees in Maharashtra
Maharashtra fully exempts women from Professional Tax. Deducting it anyway is an incorrect salary deduction. The employee is owed a refund, and your payroll records are wrong.
03
Using the same PT rate across all states
Every state has different slabs and thresholds. Maharashtra starts PT at Rs 7,501. Karnataka at Rs 15,001. Gujarat at Rs 6,000. Using one flat rate for all employees is guaranteed to be wrong for most of them.
04
Missing the February adjustment in Maharashtra
Maharashtra charges Rs 200/month for 11 months and Rs 300 in February to hit the Rs 2,500 annual cap. Charging a flat Rs 200 all 12 months means you've underpaid by Rs 100. The state will notice.
05
Not registering for PT in states where you have employees
Even one employee in a PT-levying state means you need to register as a PT employer in that state. No registration = no payments = accumulating liability and potential penalty when discovered.
06
Forgetting that PT is deductible from income tax
PT paid during the year is deductible under Section 16(iii) of the Income Tax Act. It's a small amount (max Rs 2,500), but many employees miss it. Our guide on tax-saving salary components explains how PT and other deductions reduce your taxable income.
Comparison
Quick comparison of PT across major states.
| State | Starting Threshold | Max PT/Year | Women Exempt? | Frequency |
|---|---|---|---|---|
| Maharashtra | Rs 7,501 | Rs 2,500 | Yes | Monthly |
| Karnataka | Rs 15,001 | Rs 2,400 | No | Monthly |
| West Bengal | Rs 10,001 | Rs 2,400 | No | Monthly |
| Gujarat | Rs 6,000 | Rs 2,500 | No | Monthly |
| AP / Telangana | Rs 15,001 | Rs 2,500 | No | Monthly |
| Tamil Nadu | Rs 21,001 | Rs 2,500 | No | Half-yearly |
| Kerala | Rs 12,000 | Rs 2,500 | No | Half-yearly |
Stop Googling PT slabs every month.
Download the free guide and keep all 18 states' PT rates in one printable reference.
FAQ
Frequently asked questions.
What is Professional Tax and who has to pay it?
Professional Tax (PT) is a state-level tax on income earned through employment, trade, or profession. It's deducted from the employee's salary by the employer and deposited with the state government. Not all states levy it. As of May 2026, 18 Indian states charge PT, while 12 (including Delhi, UP, Rajasthan, and Haryana) don't. The maximum PT any state can charge is Rs 2,500 per person per year, as capped by Article 276(2) of the Constitution. Both salaried employees and self-employed professionals are liable. The employer is responsible for deducting and depositing PT for salaried staff. If you're also handling gratuity calculations, PT is one more payroll deduction to track alongside PF and ESI.
Is Professional Tax the same in all states?
No. Every state that levies PT has its own slab structure, thresholds, and rules. Maharashtra starts PT at Rs 7,501 monthly salary and exempts all women. Karnataka uses a flat Rs 200 for anyone above Rs 15,000. Gujarat starts as low as Rs 6,000. Tamil Nadu collects half-yearly instead of monthly. The only constant is the Rs 2,500 annual cap set by the Constitution. If your business operates in multiple states, you need to track each state's rules separately. Our minimum wages reference chart covers another state-wise compliance area that varies just as much.
Are women exempt from Professional Tax?
Only in Maharashtra. The Maharashtra State Tax on Professions Act, 1975 fully exempts women from PT, regardless of their salary. No other state offers a blanket women exemption as of May 2026. Some states offer partial exemptions for disabled persons or senior citizens, but these vary. Always check the specific state Act for the current exemption list.
Can I claim Professional Tax as a deduction in income tax?
Yes. PT paid during the financial year is deductible under Section 16(iii) of the Income Tax Act, 1961. This deduction is available under both the old and new tax regimes. The amount appears in Part B of your Form 16. While the maximum deduction is only Rs 2,500, it directly reduces your taxable salary income. With the new EPFO 3.0 rules also changing how PF works, staying on top of all payroll deductions (PF, ESI, PT, TDS) matters more than ever.
What happens if my company doesn't deduct PT?
The employer is liable. If a state discovers you have employees working in their jurisdiction without PT registration and deduction, you'll owe the back PT for every employee for every month, plus interest. Some states impose penalties for non-registration and late payment. The amounts are small per employee, but they add up. A company with 50 employees in Maharashtra that missed PT for a year would owe at least Rs 1,25,000 (50 x Rs 2,500) in back taxes alone, before interest. Register in every state where you have employees. If you also manage employee onboarding compliance, add PT registration to the same Day 1 checklist.
About Petpooja
Petpooja is India's leading SME business software suite, trusted by 1,50,000+ businesses across restaurants, retail, healthcare, manufacturing, and more. From billing and payroll to task management and procurement, Petpooja helps Indian businesses run better, every day.
Automate PT deduction for every state, every employee
Petpooja Payroll auto-applies the correct Professional Tax slab based on each employee's work location. PF, ESI, TDS, and PT calculated every month. Salary slips delivered via WhatsApp with full deduction breakup.
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