Professional Tax in India: State-Wise Rates, Slabs & Due Dates (2026)

Professional Tax is levied by states, not the Centre — so where you employ people decides whether you deduct it at all. Here's the state-by-state picture, the slabs, and the deadlines.

ComplianceCheck Team · Published 3 July 2026

Professional Tax (PT) is a small but frequently-missed statutory deduction. Because it is a state subject, the rules differ everywhere — some states levy it, others don't, and the salary slabs and due dates vary. If you run payroll across multiple states, PT is one of the easiest things to get wrong. This guide gives you the full picture.

Key facts at a glance

• Professional Tax is levied by state governments, not the central government.
• The maximum PT is capped at Rs 2,500 per year per person (a constitutional limit).
• The employer must deduct PT from salaries and deposit it with the state.
• Roughly half of India's states levy PT; major states like Delhi, Haryana, UP and Rajasthan do not.
• If you operate in multiple states, you must register and file separately in each applicable state.

Who pays Professional Tax?

Anyone earning an income from a profession, trade, or employment in a state that levies PT — salaried employees, professionals, and businesses. For salaried staff, the employer deducts PT from the monthly salary and deposits it with the state government. Self-employed professionals pay it directly.

The amount depends on the employee's monthly salary slab, subject to the Rs 2,500 per year statutory ceiling set under Article 276 of the Constitution.

States that levy Professional Tax (with thresholds)

The table below shows the states that levy PT, the annual maximum, the filing frequency, and the salary level at which PT begins to apply.

Slabs are revised periodically by each state — always confirm the current schedule on your state's commercial tax / PT portal before finalising payroll.

States that do NOT levy Professional Tax

If all your employees are in these states, you have no PT obligation at all:

• Delhi
• Uttar Pradesh
• Haryana
• Rajasthan
• Uttarakhand
• Himachal Pradesh
• Jammu & Kashmir
• Chhattisgarh
• Goa

This is a common source of confusion for companies expanding — a Bengaluru business that opens a Gurugram office does not deduct PT for its Haryana staff.

Due dates in the big states

Frequencies differ — Tamil Nadu and Kerala file half-yearly, Gujarat allows quarterly for smaller employers — so build a state-wise compliance calendar rather than assuming one national deadline.

Multi-state operations: what to do

If you employ people in more than one PT state:

1. Register for PT in each applicable state — there is no central PT registration.
2. Obtain both certificates where required — a Professional Tax Registration Certificate (PTRC, for deducting from employees) and a Professional Tax Enrolment Certificate (PTEC, for the entity itself).
3. Deduct per each state's slab, not a blended rate.
4. File on each state's frequency and due date.
5. Skip PT entirely for employees based in exempt states.

Centralised payroll software helps, but the deductions themselves must reflect each state's rules.

Penalties for non-compliance

PT penalties are state-specific but generally include:

• A penalty for late or non-registration (often a per-day amount).
• Interest on late payment, typically 1.25% to 2% per month.
• A penalty for late filing or non-filing of returns.
• A penalty for non-deduction, usually equal to the tax amount plus interest.

The sums are small per employee but accumulate quickly across a workforce and multiple months, and they surface during due diligence and audits.

Your Professional Tax checklist

1. Map your employees by state and identify which are in PT-levying states.
2. Register (PTRC and PTEC) in each applicable state within the state's timeline.
3. Apply the correct slab per state for each employee's salary band.
4. Deposit and file on each state's due date and frequency.
5. Cap the annual deduction at Rs 2,500 per employee (Rs 2,400 in Punjab).
6. Review when you hire in a new state — applicability changes with location, not headcount.

Frequently asked questions

Which states have no Professional Tax? Delhi, Uttar Pradesh, Haryana, Rajasthan, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, Chhattisgarh and Goa do not levy Professional Tax.

What is the maximum Professional Tax in India? Professional Tax is capped at Rs 2,500 per person per year under Article 276 of the Constitution. Punjab's maximum is Rs 2,400.

Who deducts and deposits Professional Tax? For salaried employees, the employer deducts PT from monthly salary and deposits it with the state government. Self-employed professionals pay it directly through enrolment.

Do I need to register for Professional Tax in each state? Yes. Professional Tax has no central registration. If you employ people in multiple PT-levying states, you must register and file separately in each.

Is Professional Tax the same across India? No. Rates, salary slabs, due dates and filing frequency all differ by state, and several states don't levy it at all.

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This guide is general information, not legal advice. Slabs and due dates are revised by individual states — verify on your state's commercial tax / Professional Tax portal.

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Sources: state commercial tax / Professional Tax department portals; Article 276, Constitution of India.