Professional Tax India 2026: Complete State-wise Guide for Employers
Professional tax slabs, payment frequency, and compliance requirements for every Indian state in 2026 — Maharashtra, Karnataka, AP, Telangana, West Bengal, Tamil Nadu, and more.
Professional Tax in India 2026: Complete State-wise Guide for Employers
Professional tax (PT) is a state-level tax levied on individuals earning a salary or practising a profession. It is one of the most frequently misconfigured elements of Indian payroll — not because it is conceptually complex, but because the rules differ by state, slabs change without consistent notification schedules, and the filing process varies from monthly to annual depending on the state.
This guide covers every major Indian state's professional tax slabs, deduction frequency, and payment process for 2026. It is written for HR and payroll teams who need a single authoritative reference for multi-state payroll configuration.
What Is Professional Tax and Who Must Pay It?
Professional tax is levied under Article 276 of the Constitution, which allows state governments to impose a tax on professions, trades, callings, and employment. The maximum annual PT any individual can pay is ₹2,500 per financial year, as capped by the Constitution.
Who deducts PT: Employers are responsible for deducting PT from employee salaries and remitting it to the state government. The employer is also typically liable for PT on their own business.
Who is liable: All salaried employees working in a state that levies PT. Some states exempt certain categories — women employees in certain states, employees below a salary threshold, or employees in specific industries.
Which states levy PT: Maharashtra, Karnataka, Andhra Pradesh, Telangana, West Bengal, Tamil Nadu, Gujarat, Madhya Pradesh, Odisha, Assam, Meghalaya, Tripura, Sikkim, Chhattisgarh, Bihar, Jharkhand, and Kerala. Delhi, Uttar Pradesh, Rajasthan, Haryana, Punjab, and several northeastern states do NOT levy PT.
State-wise Professional Tax Slabs 2026
Maharashtra
Maharashtra levies PT on employees based on monthly salary. The 2026 slabs are:
| Monthly Salary | Monthly PT |
|---|---|
| Up to ₹7,500 | Nil |
| ₹7,501 – ₹10,000 | ₹175 |
| ₹10,001 and above | ₹200 (₹300 in February) |
Payment frequency: Monthly, by the last day of the following month. Annual PT cap: ₹2,500 (₹200 × 11 months + ₹300 in February). Registration: Employer registers with the Maharashtra State Tax on Professions, Trades, Callings and Employment. Exemptions: Women earning up to ₹25,000 per month are exempt from PT in Maharashtra (as of 2023 amendment — verify current applicability with your PT consultant).
Karnataka
Karnataka uses an annual salary slab structure, deducted in semi-annual instalments.
| Annual Gross Salary | Annual PT |
|---|---|
| Up to ₹25,000 | Nil |
| ₹25,001 – ₹50,000 | ₹212 |
| ₹50,001 – ₹75,000 | ₹1,050 |
| ₹75,001 – ₹1,00,000 | ₹1,500 |
| ₹1,00,001 – ₹1,25,000 | ₹1,800 |
| ₹1,25,001 – ₹1,50,000 | ₹2,100 |
| ₹1,50,001 – ₹2,00,000 | ₹2,350 |
| ₹2,00,001 and above | ₹2,500 |
Payment frequency: Semi-annual — April to September liability paid by October 20; October to March liability paid by April 20. Note: Karnataka PT is calculated on gross salary, not basic salary. Ensure your HRMS is using the correct base.
Andhra Pradesh
| Monthly Salary | Monthly PT |
|---|---|
| Up to ₹15,000 | Nil |
| ₹15,001 – ₹20,000 | ₹150 |
| ₹20,001 and above | ₹200 |
Payment frequency: Monthly. Registration: With the Commercial Tax Department, Government of Andhra Pradesh.
Telangana
| Monthly Salary | Monthly PT |
|---|---|
| Up to ₹15,000 | Nil |
| ₹15,001 – ₹20,000 | ₹150 |
| ₹20,001 and above | ₹200 |
Payment frequency: Monthly. Note: Telangana and Andhra Pradesh have identical PT structures post-bifurcation. Employees working in Telangana pay to Telangana government; those in Andhra Pradesh pay to AP government. Do not combine these into a single payment.
West Bengal
West Bengal uses a monthly slab structure.
| Monthly Salary | Monthly PT |
|---|---|
| Up to ₹10,000 | Nil |
| ₹10,001 – ₹15,000 | ₹110 |
| ₹15,001 – ₹25,000 | ₹130 |
| ₹25,001 – ₹40,000 | ₹150 |
| ₹40,001 and above | ₹200 |
Payment frequency: Monthly, within 21 days of the end of each month.
Tamil Nadu
Tamil Nadu levies PT on a half-yearly basis, calculated on semi-annual salary.
| Semi-annual Salary | Semi-annual PT |
|---|---|
| Up to ₹21,000 | Nil |
| ₹21,001 – ₹30,000 | ₹135 |
| ₹30,001 – ₹45,000 | ₹315 |
| ₹45,001 – ₹60,000 | ₹690 |
| ₹60,001 – ₹75,000 | ₹1,025 |
| ₹75,001 and above | ₹1,250 |
Payment frequency: Semi-annual — April–September paid by October 15; October–March paid by April 15.
Gujarat
Gujarat levies PT annually, collected in a single payment or spread across months.
| Annual Salary | Annual PT |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹6,00,000 | ₹2,000 |
| ₹6,00,001 and above | ₹2,500 |
Payment frequency: Annual, typically paid in the first quarter. Note: Gujarat PT can be remitted monthly (at ₹200/month for eligible employees) or annually.
Madhya Pradesh
| Monthly Salary | Monthly PT |
|---|---|
| Up to ₹18,750 | Nil |
| ₹18,751 and above | ₹208 (rounded to ₹2,500/year) |
Payment frequency: Monthly.
Odisha
| Monthly Salary | Monthly PT |
|---|---|
| Up to ₹13,304 | Nil |
| ₹13,305 – ₹25,000 | ₹125 |
| ₹25,001 – ₹41,666 | ₹166 |
| ₹41,667 and above | ₹208 |
Payment frequency: Monthly.
Kerala
| Semi-annual Income | Semi-annual PT |
|---|---|
| Up to ₹11,999 | Nil |
| ₹12,000 – ₹17,999 | ₹120 |
| ₹18,000 – ₹29,999 | ₹180 |
| ₹30,000 – ₹44,999 | ₹300 |
| ₹45,000 – ₹59,999 | ₹450 |
| ₹60,000 – ₹74,999 | ₹600 |
| ₹75,000 – ₹99,999 | ₹750 |
| ₹1,00,000 – ₹1,24,999 | ₹1,000 |
| ₹1,25,000 and above | ₹1,250 |
Payment frequency: Semi-annual.
Assam
| Monthly Salary | Monthly PT |
|---|---|
| Up to ₹9,999 | Nil |
| ₹10,000 – ₹14,999 | ₹150 |
| ₹15,000 – ₹24,999 | ₹180 |
| ₹25,000 and above | ₹208 |
Payment frequency: Monthly.
States Without Professional Tax
The following major states do NOT levy professional tax: Delhi, Uttar Pradesh, Haryana, Punjab, Rajasthan, Himachal Pradesh, Jammu & Kashmir, Uttarakhand, Goa, Chhattisgarh (repealed 2019), and most northeastern states except Assam, Meghalaya, Tripura, and Sikkim.
For companies with employees in these states, no PT deduction or remittance is required. Configure your HRMS to exempt employees in these states from PT deduction — do not leave the field blank; explicitly set it to zero.
Common PT Compliance Mistakes
Using Gross Instead of Applicable Salary Base
Karnataka PT is calculated on gross salary. Maharashtra PT is on gross salary. Most other states also use gross salary, but some use basic pay or total earnings excluding certain allowances. Verify the correct base for each state before configuring your HRMS.
Missing the February Maharashtra Adjustment
Maharashtra PT is ₹200 per month for 11 months and ₹300 in February — totalling ₹2,500 per year. Many HRMS systems that are not pre-configured for Maharashtra default to ₹200 across all 12 months, underpaying by ₹100 in February every year.
Not Registering in Each State
PT registration is required separately in each state where you have employees. Many companies have a national PF registration and assume it covers PT — it does not. If you open a new office or hire your first employee in a new PT state, PT registration must be obtained in that state before the first payroll run.
Combining Multi-State Payments
Each state requires a separate PT payment to its own government department. Do not combine Maharashtra and Karnataka PT into a single challan — the payment must go to the correct state government's account.
How to Configure Multi-State PT in Your HRMS
A well-configured HRMS handles professional tax automatically by: assigning each employee to their work state, applying the correct slab for that state, calculating PT in the correct frequency (monthly, semi-annual, or annual), and generating the challan for each state separately.
In PeopleVio, all active PT states are pre-configured with current 2026 slabs. When you assign an employee to a location in Maharashtra, Karnataka, or any PT state, the system automatically applies the correct slab and payment schedule. When PT slabs change — as they do periodically at state budget announcements — PeopleVio pushes the update to all customer accounts automatically. No manual reconfiguration is required.
Frequently Asked Questions
Is professional tax deductible under income tax?
Yes. PT paid by an employee is deductible under Section 16(iii) of the Income Tax Act when computing taxable salary income. This deduction is available under both old and new tax regimes. Your payroll software should apply this deduction automatically when calculating TDS.
What is the penalty for non-payment of PT?
Penalties for PT non-compliance vary by state. In Maharashtra, failure to deduct and remit PT can attract a penalty of 10% of the amount due, plus interest. Karnataka penalties can reach up to 50% of the tax due for wilful non-compliance. Non-registration in a PT state is a separate offence with its own penalty structure. States with active PT enforcement — Maharashtra, Karnataka, West Bengal — conduct employer audits with increasing frequency.
Does PT apply to directors of a private limited company?
Yes, if the director draws a salary from the company. A director who receives only a sitting fee (not a regular salary) may or may not be liable depending on the state's specific rules — consult a state-specific PT consultant for directors who receive variable or non-salary income.
How does PT interact with PF and ESIC?
PT is deducted from gross salary and does not affect PF or ESIC calculation. PF is calculated on wages (Basic + DA), ESIC is calculated on wages including most allowances, and PT is a separate deduction that reduces net pay independently of either. All three can coexist for an employee earning below the ESIC and PT thresholds.
Running multi-state payroll? PeopleVio pre-configures professional tax for all Indian states, updates slabs automatically, and generates state-wise PT challans from the same payroll run. Book a demo to see multi-state PT in a live payroll run.
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