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Professional Tax Rates for Indian States (Updated April 2023)

Compliance Updates
Published on: May 12, 2023

Professional Tax is a tax levied on the income earned by way of practicing a profession, employment or trade.

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Professional Tax is a tax levied on the income earned by way of practicing a profession, employment or trade. Professional Tax is charged by State Governments, therefore the rates are different in each state. In some states, Professional Tax is not applicable at all.

Levy of Professional Tax

Professional Tax is payable to State Governments. Self-employed persons are required to pay Professional Tax by themselves to the Government. For salaried individuals, the employer needs to deduct the applicable professional tax from employee’s salary and deposit with State Government.

Maximum Amount of Professional Tax

The maximum amount of professional tax that can be levied during a financial year is INR 2,500. The deduction is usually done on monthly basis, but in some cases, it is allowed to be done on annual basis also.

State-Wise Applicability of Professional Tax

Below are the list of states where Professional tax is applicable as well as not applicable. Mostly South Indian and East Indian states levy professional tax, while north-Indian states do not.

States that levy Professional Tax

  1. Andra Pradesh
  2. Karnataka
  3. Maharashtra
  4. Tamil Nadu
  5. Assam
  6. Kerala
  7. Meghalaya
  8. Tripura
  9. Bihar
  10. Jharkhand
  11. Madhya Pradesh
  12. West Bengal
  13. Manipur
  14. Mizoram
  15. Odisa
  16. Puducherry
  17. Sikkim
  18. Telangana
  19. Nagaland
  20. Chattisgarh
  21. Gujarat

States that DO NOT levy Professional Tax

  1. Arunachal Pradesh
  2. Himachal Pradesh
  3. Delhi
  4. Haryana
  5. Uttar Pradesh
  6. Uttarakhand
  7. Andaman and Nicobar Islands
  8. Daman & Diu
  9. Dadra and Nagar Haveli
  10. Lakshadweep
  11. Jammu & Kashmir
  12. Punjab
  13. Rajasthan
  14. Chandigarh
  15. Goa

Rates of Professional Tax

Here are the Professional Tax Rates across various states of India:
(Last updated: April 2023)

Andhra Pradesh

  • Up-to Rs. 15,000 per month: NIL
  • Above Rs. 15,000 and up-to Rs. 20,000 per month: Rs. 150
  • Above Rs. 20,000 per month: Rs.200

Assam

  • Up-to Rs. 10,000 per month: NIL
  • Above Rs. 10,000 and up-to Rs. 15,000 per month: Rs. 150
  • Above Rs. 15,000 and up-to Rs. 24,999 per month: Rs. 180
  • Above Rs. 24,999 per month: Rs.208

Bihar

    • Up-to Rs. 25,000 per month: NIL
    • Above Rs. 25,000 and up-to Rs. 41,666 per month: Rs. 1,000
    • Above Rs. 41,667 and up-to Rs. 83,333 per month: Rs. 2,000
    • Above Rs. 83,333 per month: Rs. 2,500

    Gujarat

    • Up-to Rs. 6,000 per month: NIL
    • Above Rs. 6,000 and up-to Rs.9000 per month: Rs. 80
    • Above Rs. 9,000 and up-to Rs.12,000 per month: Rs. 150
    • Above Rs. 12,000 per month: Rs. 200

    Jharkhand

      • Up-to Rs. 25,000 per month: NIL
      • Above Rs. 25,000 and up-to Rs. 41,666 per month: Rs. 100
      • Above Rs. 41,667 and up-to Rs. 66,666 per month: Rs. 150
      • Above Rs. 66,667 and up-to Rs. 83,333 per month: Rs. 175
      • Above Rs. 83,334 per month: Rs. 208

      Karnataka

        • Up-to Rs. 24,999 per month: NIL
        • Above Rs. 24,999 per month: Rs. 200

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        Celia, Virtual Assistant

        Celia, Virtual Assistant

        Celia is an artificial assistant built by Runtime HRMS based on large language model.