Professional Tax in 2026: State-wise Slabs, Registration, Payment and Penalties

Professional tax (PT) is a small state tax on salaries and professions — at most ₹2,500 a year per person — but getting it wrong means late fees, interest and notices for every month you missed. This guide is for MSME owners running payroll and for employees reading their payslips. It covers the verified 2026 slabs for six states, the West Bengal revision that took effect on 1 October 2026, PTRC vs PTEC registration, due dates and penalties, with ₹ examples.

Quick answer

Professional tax is levied by states under Article 276 of the Constitution and capped at ₹2,500 a year per person. Employers deduct it from salaries (registration: PTRC) and pay their own PT as an entity (enrolment: PTEC). Rates differ by state; some states, including Delhi and Uttar Pradesh, levy none.

• Maharashtra: ₹200 a month above ₹10,000 (men) or ₹25,000 (women), ₹300 in February

• Karnataka: ₹200 a month from ₹25,000, ₹300 in February

• West Bengal from 1 Oct 2026: nil up to ₹20,000, top rate ₹208 a month

• Gujarat: ₹200 a month above ₹12,000; Telangana: nil up to ₹15,000

What professional tax is and who pays it

Professional tax is a tax on "professions, trades, callings and employments". Despite the name, it is not limited to doctors and lawyers — anyone earning a salary in a state that levies it pays it, and so do businesses, partners, company directors and self-employed professionals in most of those states.

Three things make PT different from income tax:

• It is a state (or municipal) tax. Each state has its own Act, slabs and portal. The rate depends on where the employee works, not where the company is registered.
• It is capped. Article 276(2) limits the total to ₹2,500 a year per person per year — a limit set by the Constitution (Sixtieth Amendment) in 1988.
• The employer collects it. For salaried staff, the employer deducts PT every month (or half-year) and deposits it, whether or not it actually deducted the amount.

Professional tax at a glance (2026)

₹2,500 a year

Maximum per person

Article 276(2)

₹200

Most common monthly rate

1 Oct 2026

West Bengal's new slabs take effect

₹1,000 per return

Maharashtra late fee per return

State-wise professional tax slabs for 2026

Every row below was checked against the state's own schedule or portal in October 2026. Andhra Pradesh, Kerala and Madhya Pradesh also levy PT, but their current schedules could not be confirmed from an official page — use the state links at the end of this guide to check them.

Tamil Nadu is different: PT is levied by each local body on average half-yearly income. In Greater Chennai Corporation the half-yearly rates since the second half of 2024-25 are nil up to ₹21,000; ₹180 for ₹21,001–30,000; ₹425 for ₹30,001–45,000; ₹930 for ₹45,001–60,000; ₹1,025 for ₹60,001–75,000; and ₹1,250 per half-year above ₹75,000. Other corporations, municipalities and panchayats in Tamil Nadu set their own rates.

What changed in 2025 and 2026

West Bengal (from 1 October 2026). The state amended its 1979 Act (Notification 756-L, 7 August 2026), published a draft new Schedule for objections (1407-F.T., 18 August 2026) and finalised it by Notification 1607-F.T. dated 16 September 2026. For employees, the exemption limit doubled from ₹10,000 to ₹20,000 a month and the slabs were reset; the top rate rose from ₹200 to ₹208 a month for salaries above ₹1 lakh. New income- and turnover-based rates for professionals and traders apply from 1 April 2027. Payroll teams should re-run October 2026 salaries on the new table.

Karnataka (from 1 April 2025). The Karnataka Amendment Act, 2025 kept the ₹25,000 threshold but changed the rate to ₹200 a month with ₹300 in February, so a full year now adds up to exactly ₹2,500 (it was ₹2,400).

Maharashtra (from March 2026). An amendment to Rule 11(3) of the Maharashtra PT Rules, notified on 28 February 2026, moved return and payment due dates from the last day of the period to the 15th — see the due-date section below.

Worked examples in ₹

Maharashtra — man earning ₹45,000 a month. ₹200 × 11 months + ₹300 in February = ₹2,500 for the year. A woman on ₹22,000 a month pays nothing; at ₹26,000 she pays the same ₹2,500.

Karnataka — two employees. One earns ₹24,500 (below ₹25,000): nil. The other earns ₹30,000: ₹200 × 11 + ₹300 = ₹2,500.

West Bengal — the transition year 2026-27. An employee earning ₹35,000 paid ₹150 a month from April to September under the old schedule (₹900) and pays ₹140 a month from October to March (₹840): ₹1,740 for the year. An employee on ₹1,20,000 pays ₹200 × 6 + ₹208 × 6 = ₹2,448.

Chennai — half-yearly. A salary of ₹40,000 a month means half-yearly income of ₹2,40,000, above ₹75,000, so PT is ₹1,250 per half-year per half-year — ₹2,500 a year.

Gujarat and Telangana. ₹15,000 a month in Ahmedabad: ₹200 × 12 = ₹2,400. ₹18,000 a month in Hyderabad: ₹150 × 12 = ₹1,800.

Build these deductions straight into payslips with our free salary slip generator, which has a professional tax line next to PF and TDS.

PTRC vs PTEC: which registration you need

Maharashtra's terms are the best known, and most states use the same two-part idea under different names (Karnataka calls them registration and enrolment certificates).

PTRC vs PTEC

	PTRC — Registration Certificate	PTEC — Enrolment Certificate
Who needs it	Every employer with staff whose salary crosses the state's threshold	Companies, firms, LLPs, proprietors, directors and self-employed professionals in a PT state
What it covers	PT deducted from employees' salaries	The entity's or person's own PT
Amount	As per salary slabs, per employee	Usually a flat ₹2,500 a year
How often	Monthly or annual returns (by liability)	Once a year
Typical penalty for not registering (MH)	₹5 per day of delay	₹2 per day of delay

Who needs it

PTRC — Registration Certificate

Every employer with staff whose salary crosses the state's threshold

PTEC — Enrolment Certificate

Companies, firms, LLPs, proprietors, directors and self-employed professionals in a PT state

What it covers

PTRC — Registration Certificate

PT deducted from employees' salaries

PTEC — Enrolment Certificate

The entity's or person's own PT

Amount

PTRC — Registration Certificate

As per salary slabs, per employee

PTEC — Enrolment Certificate

Usually a flat ₹2,500 a year

How often

PTRC — Registration Certificate

Monthly or annual returns (by liability)

PTEC — Enrolment Certificate

Once a year

Typical penalty for not registering (MH)

PTRC — Registration Certificate

₹5 per day of delay

PTEC — Enrolment Certificate

₹2 per day of delay

A private limited company in Pune with ten employees needs a PTRC to deduct and pay its staff's PT, and a PTEC to pay its own ₹2,500.

How to register and pay professional tax online

Registering and paying PT

1. 1

   Check the threshold for each work location

   PT follows where the employee works. A Mumbai company with staff in Bengaluru registers in both Maharashtra and Karnataka.

2. 2

   Register on the state portal

   Apply with PAN, the establishment's address proof, GSTIN or incorporation certificate and employee details. Maharashtra uses mahagst.gov.in, Karnataka ptax.karnataka.gov.in, West Bengal professiontax.wb.gov.in.

   Tip: Register within the deadline after your first employee crosses the threshold — delay penalties run per day in Maharashtra and per month in West Bengal.

3. 3

   Deduct PT from the payroll

   Apply the slab to each employee's gross monthly salary, including the higher February amount where it applies.

4. 4

   Pay the challan and file the return

   Pay online by net banking, card or UPI through the state's e-payment system, then file the return for the period.

5. 5

   Pay the entity's own PT (PTEC)

   Pay the annual amount for the business, partners or directors as your state requires.

Due dates and penalties

Due dates are set state by state. Maharashtra's, as amended in 2026:

Maharashtra PT due dates (from March 2026)

15th of next month

PTRC monthly return + payment — employers whose previous-year PT liability was ₹1,00,000 or more

15 March

PTRC annual return + payment — employers whose previous-year liability was below ₹1,00,000

Annually

PTEC payment for the entity's own tax (30 June under the Act; some 2026 guides say 15 June — confirm on mahagst.gov.in)

In Karnataka, the annual PT payment window for enrolled persons and businesses ran until 5 May 2026 after an extension shown on the state portal. Other states generally require employers to deposit the tax monthly, early in the following month — check the date on your state portal before your first payroll run.

Penalties in Maharashtra include a late fee of ₹200 per return for a return filed within 30 days of the due date and ₹1,000 per return after that; interest on late payment of 1.25% for the first month, 1.5% a month for the next two months and 2% a month after that; up to 10% of the tax due as a penalty for non-payment; and ₹5 (PTRC) or ₹2 (PTEC) per day for late registration. West Bengal can impose ₹100 for each month of delay if a person wilfully fails to enrol within 90 days of becoming liable.

Exemptions and income-tax treatment

States exempt specific groups. Karnataka's portal, for example, lists people aged 60 and above and persons with disabilities among those exempt. Maharashtra exempts women earning up to ₹25,000 a month, which is why its slabs differ by gender. Check your state's notification before marking anyone exempt.

For income tax, salaried employees can deduct the PT they paid from salary income only under the old tax regime; the new regime does not allow it. Your Form 16 shows PT separately. Businesses and professionals can claim their own PT as a business expense.

Professional tax payroll checklist

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• List every work location and the PT state for each employee
• Hold a PTRC (registration) in each PT state where you have staff above the threshold
• Hold a PTEC (enrolment) for the business and pay its annual PT
• Update salary masters for West Bengal's new slabs from 1 October 2026
• Apply the higher February deduction in Maharashtra and Karnataka
• Record exemptions (age, disability, women's threshold) with proof
• Calendar the due date for each state — Maharashtra moved to the 15th
• Keep challans and returns for assessment; show PT on every payslip

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States with no professional tax

Delhi, Haryana, Uttar Pradesh, Rajasthan, Uttarakhand and Himachal Pradesh do not levy professional tax on salaries, so employees working there see no PT on their payslips. Odisha joined this list from 1 April 2026, when the Odisha State Tax on Professions, Trades, Callings and Employments Act, 2000 was repealed by Ordinance 02 of 2026 — stop deducting PT for Odisha-based staff from April 2026 payroll. For every state's deposit and return deadlines, see our professional tax due dates table. Punjab recovers a separate State Development Tax instead. If you run payroll across states, set PT at the employee's work location — a Gurugram employee of a Mumbai company pays no PT.

Official links

• Maharashtra — PT rate schedule (PDF)Slabs for salaries, employers and professionals
• Karnataka — Professional Tax portalEnrolment, employer login, schedule, FAQ
• West Bengal — Profession Tax portalEnrolment, registration, returns, payments
• West Bengal — new Schedule notification (1407-F.T.)Slabs effective 1 Oct 2026 for employees
• Gujarat — Rate of Profession Tax (PDF)Effective 1 April 2022
• Telangana — PT ScheduleSalary slabs and professional entries
• Andhra Pradesh — My Profession Tax portalKnow PT liability, register, pay
• Greater Chennai Corporation — Revenue (Profession Tax)Half-yearly slabs, online payment
• Madhya Pradesh — Commercial Tax portalVritti Kar registration and payment

What to do next

Map each employee to a work state, register where needed, and update October 2026 payroll for West Bengal. Then generate compliant payslips with our salary slip generator, check TDS on salaries with the TDS calculator, and if you are settling an exit, work out the gratuity due.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What is the maximum professional tax in India?

Article 276(2) of the Constitution caps professional tax at ₹2,500 a year per person, combined across the state and any local body. That is why most states charge ₹200 a month and a little extra in one month — for example ₹300 in February in Maharashtra and Karnataka — to land exactly on ₹2,500.

Is professional tax deducted from salary every month?

In most states, yes — the employer deducts it from monthly salary and deposits it with the state. Tamil Nadu and Kerala are exceptions: local bodies there levy it half-yearly on average half-yearly income. In Madhya Pradesh the rate depends on annual salary but is still recovered monthly.

Which states do not have professional tax?

There is no professional tax for salaried employees in Delhi, Haryana, Uttar Pradesh, Rajasthan, Uttarakhand and Himachal Pradesh, and Odisha repealed its professional tax from 1 April 2026. Punjab does not call it professional tax but recovers a separate State Development Tax from salaried people. Always check where the employee actually works — PT follows the place of employment, not the head office.

What is the difference between PTRC and PTEC?

PTRC (Profession Tax Registration Certificate) is the employer's registration to deduct PT from staff salaries and pay it to the state. PTEC (Profession Tax Enrolment Certificate) is the business's or professional's own enrolment to pay its own annual PT, usually ₹2,500 a year. A company with employees in Maharashtra typically needs both.

Can I claim professional tax as a deduction in income tax?

Professional tax paid on salary is deductible from salary income only if you choose the old tax regime. The default new regime does not allow it. Businesses and professionals who pay PT on their own enrolment can treat it as a business expense.

What is the new professional tax slab in West Bengal?

From 1 October 2026, salaried employees in West Bengal pay nil up to ₹20,000 a month, ₹100 up to ₹30,000, ₹140 up to ₹50,000, ₹170 up to ₹1,00,000 and ₹208 a month above that. The earlier exemption limit was ₹10,000 and the top rate was ₹200.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 7 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Rate Schedules under the Profession Tax Act, 1975 (as on 31.03.2025) — Maharashtra State Tax Department · accessed 7 October 2026
2. 2.Karnataka PT Schedule (salary or wage earners ₹25,000 and above) — Commercial Taxes Department, Karnataka · accessed 7 October 2026
3. 3.Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2025 — TaxGuru (text of Karnataka Act 33 of 2025) · accessed 7 October 2026
4. 4.Notification No. 1407-F.T. — proposed new Schedule (18.08.2026) — Finance Department (Revenue), Government of West Bengal · accessed 7 October 2026
5. 5.West Bengal Professional Tax Slabs Revised 2026 — Notification 1607-F.T. — DCPSOL · accessed 7 October 2026
6. 6.Rate of Profession Tax under the Gujarat State Tax on Professions Act, 1976 — Commercial Tax Department, Gujarat · accessed 7 October 2026
7. 7.Telangana Tax on Professions Act, 1987 — First Schedule (as amended) — Commercial Taxes Department, Telangana · accessed 7 October 2026
8. 8.Revenue Department — Profession Tax — Greater Chennai Corporation · accessed 7 October 2026
9. 9.Article 276 — Taxes on professions, trades, callings and employments — Constitution of India (text) · accessed 7 October 2026
10. 10.Maharashtra Profession Tax Act — referencer — Bombay Chartered Accountants' Society · accessed 7 October 2026
11. 11.Maharashtra advances Profession Tax due dates to 15th — TaxGuru · accessed 7 October 2026