Quick answer: Professional tax is a state tax on employment that you deduct from an employee’s salary each month and pay to the state government. Article 276(2) of the Constitution caps it at ₹2,500 a year. Each state sets its own slabs. Some levy none.
- Maharashtra and Karnataka both reach ₹2,500 a year as ₹200 a month plus ₹300 in February.
- Women in Maharashtra pay nothing on salaries up to ₹25,000 a month, from 1 April 2023.
- Delhi, Haryana, Uttar Pradesh and Rajasthan levy no professional tax on salaries.
- Odisha repealed professional tax with effect from 1 April 2026.
How does the professional tax slab work by state?
It follows where the employee works, not where your company is based.
So a Pune hire falls under the Maharashtra professional tax slab, while a Bengaluru hire falls under Karnataka’s. A remote employee in Gurugram attracts none. One payroll, three answers.
| State | Monthly salary | PT a month |
|---|---|---|
| Maharashtra, men | Up to ₹7,500 | Nil |
| Maharashtra, men | ₹7,501 to ₹10,000 | ₹175 |
| Maharashtra, men | Above ₹10,000 | ₹200 (₹300 in February) |
| Maharashtra, women | Up to ₹25,000 | Nil |
| Maharashtra, women | Above ₹25,000 | ₹200 (₹300 in February) |
| Karnataka, all | ₹25,000 and above | ₹200 (₹300 in February) |
The Maharashtra women’s exemption came from a 2023 amendment, which Khaitan & Co’s note on the Maharashtra PT amendment covers. Karnataka’s revised slab applies retrospectively from 1 April 2025.
A frequent payroll error is copying one state’s deduction onto every employee. If your Pune entity hires someone who works from Delhi, deducting ₹200 a month takes money no state asked for. Fixing it means reversals.
What does professional tax cost an employee in Pune?
Let’s say you hire a male QA engineer in Pune on ₹80,000 a month. He pays ₹200 in each of 11 months and ₹300 in February, which adds up to ₹2,500 for the year, exactly the constitutional maximum. Small, but mandatory.
A female colleague on ₹22,000 pays nothing. On ₹30,000, she pays the same ₹2,500 as him.
Is professional tax deductible from taxable income?
Only under the old tax regime.
The Income-tax Act, 2025 lists tax on employment as a full deduction from salary in section 19. But section 202 switches it off for anyone on the default new regime, as the Income Tax Department’s text of section 19 and its section 202 page show. The new regime is the default. For staff who stay in it, PT gives no tax relief at all.
Show the deduction clearly on the payslip either way. It sits next to TDS on salary and, in some states, the Labour Welfare Fund deduction.
How does Remunance handle professional tax across Indian states?
Remunance registers for professional tax in each state where your people work, applies the right slab and deposits the deduction on time. With hires across 34 Indian cities, we run state rules side by side every month.
For a full view of monthly filings, see our guide to payroll compliance in India. To map professional tax for a multi-city team, speak to our statutory compliance team.
What else do people ask about professional tax?
What is the maximum professional tax in India?
It is ₹2,500 a year per person. Article 276(2) of the Constitution sets that ceiling, so no state can charge more.
Who pays professional tax, employer or employee?
The employee bears it. You deduct it from monthly salary and deposit it with the state, so the registration and the filing sit with the employer.
Which states do not have professional tax?
Delhi, Haryana, Uttar Pradesh and Rajasthan do not levy it on salaries. Odisha joined that list on 1 April 2026.