Professional Tax Rates for Indian States (Updated April 2023)

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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