A professional tax slab is set by each state, not by the Income Tax Department, and no state can charge more than ₹2,500 a person in a year. In most states your employer deducts ₹200 a month once your salary crosses the state's limit, with a slightly larger deduction in one month to reach the yearly total.
Because the tax belongs to the states, the slabs, the nil limit and even the payment cycle vary: West Bengal and Maharashtra deduct monthly, while Chennai collects every half year. Below are slab tables for four common cases, how the money is collected, and how professional tax affects your income tax in each regime. For central income tax rates, go to the income tax slab overview.
Quick facts
Levied by
State governments and, in some states, local bodiesYearly cap
₹2,500 a person (Article 276 of the Constitution)Deducted by
Employer, from monthly or half-yearly salaryIncome tax deduction
Yes in the old regime; not in the new regimeTypical top rate
₹200 a monthStates without it
Several, including Delhi
P tax slab in West Bengal
| Monthly salary | Tax per month |
|---|---|
| Up to ₹10,000 | Nil |
| ₹10,001 to ₹15,000 | ₹110 |
| ₹15,001 to ₹25,000 | ₹130 |
| ₹25,001 to ₹40,000 | ₹150 |
| Above ₹40,000 | ₹200 |
The top band works out to ₹2,400 a year. A Kolkata employee earning ₹32,000 a month pays ₹150 each month, or ₹1,800 a year. People searching for a new P tax slab in West Bengal for 2026-27 should check the state's commercial taxes department; the bands shown were the ones in use for FY 2025-26.
Maharashtra and Karnataka professional tax slab
| State | Monthly salary | Tax |
|---|---|---|
| Maharashtra (men) | Up to ₹7,500 | Nil |
| Maharashtra (men) | ₹7,501 to ₹10,000 | ₹175 |
| Maharashtra | Above ₹10,000 | ₹200; ₹300 in February |
| Karnataka (from 1 April 2025) | Below ₹25,000 | Nil |
| Karnataka (from 1 April 2025) | ₹25,000 or more | ₹200; ₹300 in February |
Maharashtra gives women a higher nil limit than men, so check the current figure before running payroll for a woman employee. Karnataka raised its nil limit to ₹25,000 and added the ₹300 February instalment through its Amendment Act, 2025, so the yearly total for most salaried people in Bengaluru is now ₹2,500.
Professional tax slab in Chennai and other states
| Salary for the half year | Tax per half year |
|---|---|
| Up to ₹21,000 | Nil |
| ₹21,001 to ₹30,000 | ₹180 |
| ₹30,001 to ₹45,000 | ₹425 |
| ₹45,001 to ₹60,000 | ₹930 |
| ₹60,001 to ₹75,000 | ₹1,025 |
| Above ₹75,000 | ₹1,250 |
Chennai collects twice a year, for April to September and October to March. For the professional tax slab in Kerala, expect half-yearly bands collected by local bodies; the professional tax slab in MP follows its own annual bands. Their figures are revised by state or civic notifications, and published tables often disagree, so confirm with the relevant department rather than an old payroll chart.
Worked example: three cities, one salary
Three employees each earn ₹50,000 a month.
- Mumbai: ₹200 for eleven months plus ₹300 in February = ₹2,500.
- Kolkata: ₹200 for twelve months = ₹2,400.
- Chennai: half-yearly salary of ₹3,00,000 is above ₹75,000, so ₹1,250 twice = ₹2,500.
In the old regime, each can deduct what was actually paid from salary income. At a 20% slab with cess, a ₹2,500 deduction saves ₹520 of income tax. In the new regime it saves nothing.
Professional tax and income tax
Professional tax paid is a deduction from salary under section 16(iii) of the Income-tax Act, 1961, and that deduction exists in the old regime alone. The new regime does not allow it. It appears in Form 16 Part B, and you enter it in the salary schedule of your return. For a business owner or professional who pays it on their own enrolment, it is an allowable business expense. See old regime slabs for the other deductions you keep there.
Who pays and how it is collected
- Employers register with the state, deduct from salary and deposit by the state's due date, usually monthly.
- Self employed people, such as doctors, lawyers and shop owners, enrol and pay a fixed yearly amount in states that tax them.
- Late payment draws interest and penalty under state law, not under the Income-tax Act.
Mistakes employers and employees make
| Error | Fix |
|---|---|
| Deducting ₹200 every month in Karnataka | February is ₹300 from FY 2025-26 |
| Using the office state's slab for a remote worker | Follow the rules of the state where the employee works |
| Claiming professional tax in the new regime | It is allowed only in the old regime |
| Treating it as income tax | It is a state levy; the e-filing portal does not collect it |
State slabs change by notification, and this page is only a general guide. Before payroll or filing decisions, confirm the current rates with your state's tax department or a chartered accountant.
Sources we checked
- Constitution of India, Article 276
- Income-tax Act, 1961, section 16(iii)
- Karnataka Tax on Professions, Trades, Callings and Employments (Amendment) Act, 2025
Frequently asked questions
What is the maximum professional tax in a year?
₹2,500 per person. The Constitution caps it, so no state slab can go beyond that.
What is the p tax slab in West Bengal for salaried people?
Nil up to ₹10,000 a month, then ₹110, ₹130 and ₹150 for the middle bands, and ₹200 a month above ₹40,000.
What is the Karnataka professional tax slab now?
From 1 April 2025, salary below ₹25,000 a month is exempt. At ₹25,000 or more, ₹200 is deducted each month and ₹300 in February.
Can I deduct professional tax in the new tax regime?
No. The deduction under section 16(iii) is available only if you choose the old regime.
Is professional tax charged in every state?
No. Some states and union territories, Delhi among them, do not levy it. Where it applies, the state sets its own slabs.