Professional Tax India 2025 — State-wise Rates, Deduction & Exemption
- Deducted from salary by employer — deposited with state government
- Visible in your salary slip as "PT" deduction
- Fully deductible from income under Section 16(iii)
- Not deducted in Delhi, Rajasthan, UP, MP, Haryana
- Women employees exempt in some states
You've probably noticed "PT" in your salary slip deductions. That's Professional Tax — a state-level levy on income from employment. Here's everything about it.
What is Professional Tax?
Professional Tax (PT) is a tax levied by state governments on income earned from professions, employment, trades, and callings. It is collected by employers and deposited to the state government.
Maximum PT per year is capped at ₹2,500 by the Constitution (Article 276).
State-wise Professional Tax Rates
| State | Monthly Salary | PT Per Month |
|---|---|---|
| Maharashtra | Up to ₹7,500 | Nil |
| ₹7,501 – ₹10,000 | ₹175 | |
| Above ₹10,000 | ₹200 (₹300 in Feb) | |
| Karnataka | Up to ₹25,000 | Nil |
| ₹25,001 – ₹41,999 | ₹150 | |
| ₹42,000 and above | ₹200 | |
| West Bengal | Up to ₹10,000 | Nil |
| Above ₹10,000 | ₹110 – ₹208 (slab-based) | |
| Tamil Nadu | Up to ₹21,000 | Nil |
| Above ₹21,000 | ₹208 (max) | |
| Andhra Pradesh | ₹15,001 and above | ₹200 |
| Telangana | ₹15,001 and above | ₹200 |
States With No Professional Tax
These major states do NOT levy professional tax:
- Delhi
- Uttar Pradesh
- Rajasthan
- Madhya Pradesh
- Haryana
- Himachal Pradesh
- Uttarakhand
Income Tax Deduction — Section 16(iii)
Professional tax paid is fully deductible from taxable salary income under Section 16(iii). It's automatically included in Form 16 (Part B) that your employer provides.
This deduction is available under both Old and New Tax Regime.
Who is Exempt from Professional Tax?
- Persons with disabilities (varies by state)
- Members of Armed Forces (state-dependent)
- Women employees earning below threshold (Maharashtra, some others)
- Senior citizens in some states
- Badli (temporary) workers
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