Professional Tax (PT) is a state-levied tax on profession, trade, calling and employment under Article 276 of the Constitution. Every employer in PT-applicable states must deduct PT from employee salaries and deposit it with the state. Rates and deduction timelines vary significantly by state. This guide covers state-wise PT rates and employer obligations for 2026.
States That Levy Professional Tax
PT is currently levied in: Maharashtra, Karnataka, Tamil Nadu, Telangana, West Bengal, Gujarat, Kerala, Madhya Pradesh, Andhra Pradesh, Assam, Bihar, Chhattisgarh, Jharkhand, Manipur, Meghalaya, Mizoram, Nagaland, Odisha, Puducherry, Sikkim, Tripura. Delhi, UP, Haryana, Punjab, Rajasthan and J&K do NOT levy PT.
State-Wise PT Slabs and Rates 2026
Maharashtra
| Monthly Salary | PT |
|---|---|
| Up to Rs 10,000 | Nil |
| Rs 10,001 – Rs 15,000 | Rs 175/month |
| Above Rs 15,000 | Rs 200/month (Rs 300 in February) |
Annual cap: Rs 2,500. Deduction monthly. Deposit by 30th of following month.
Karnataka
| Monthly Salary | PT |
|---|---|
| Up to Rs 15,000 | Nil |
| Rs 15,001 – Rs 25,000 | Rs 200/month |
| Above Rs 25,000 | Rs 200/month (annual cap Rs 2,400) |
Tamil Nadu
PT is half-yearly (April-September and October-March). Rates range from Rs 100 to Rs 1,250 per half-year based on income slab. Deposit within 30 days of half-year end.
Telangana
| Monthly Salary | PT |
|---|---|
| Up to Rs 15,000 | Nil |
| Rs 15,001 – Rs 20,000 | Rs 150/month |
| Above Rs 20,000 | Rs 200/month |
West Bengal
Rates range from Rs 110 to Rs 200 per month based on income slab. Annual cap Rs 2,500. Online filing via WB Profession Tax portal.
Gujarat
Rates from Rs 80 to Rs 200 per month. Deduction monthly, deposit by 15th.
Kerala, MP, AP and Others
Most other states follow similar tiered structures with annual cap of Rs 2,500. Specific rates and deadlines vary – always verify the latest with your state department or TMS.
Employer Obligations
- Register within 30 days of becoming liable (in PT-applicable state)
- Obtain Professional Tax Registration Certificate (PTRC) for deduction, Professional Tax Enrolment Certificate (PTEC) for self
- Deduct PT from employee salaries each month per state slab
- Deposit deducted PT with state treasury by state-prescribed deadline
- File monthly/quarterly/annual returns as per state rules
- Display PTRC at place of business
Penalties for Non-Compliance
- Interest 1.25% per month on delayed payment (typical)
- Penalty: 10% of unpaid PT (state-specific)
- Failure to register: Rs 5/day fine (typical)
- False statements: imprisonment up to 6 months + fine
How TMS Manages Multi-State PT Compliance
Companies operating across multiple Indian states face complex PT obligations with different rates, deadlines and filing portals. TMS handles multi-state PT compliance for 450+ Indian companies:
- PT registration in every operating state
- Monthly PT deduction and deposit across states
- State-specific return filing
- Annual PT planning and provisioning
- Integrated PT + payroll outsourcing
- Full statutory compliance across all states
Get a multi-state PT compliance audit
FAQs – Professional Tax India 2026
Is PT applicable in Delhi, UP, Haryana?
No. Delhi, UP, Haryana, Punjab, Rajasthan and J&K do not levy Professional Tax.
What is the maximum PT per year?
Constitutional cap is Rs 2,500 per person per year. Each state stays within this limit.
Who pays PT – employer or employee?
Employee pays. Employer deducts from salary and deposits with state treasury.
Do directors and partners pay PT?
Yes, under PTEC (self-enrolment) in most states with applicable PT.
See also: HR Compliance Calendar 2026 | India Labour Codes Guide
