Professional Tax Guide: State-wise Rates and Rules 2025
Complete guide to professional tax, slab rates, and compliance by state
What is Professional Tax?
Professional tax is a state-level tax levied on income earned through profession, trade, or employment. It's deducted by employer from salary.
Professional Tax Rates by Major States
PT varies significantly across states - here are the most common rates
Deducted monthly based on salary slabs (₹175-200/month)
₹200/month if monthly income exceeds ₹15,000
Progressive slabs based on monthly gross salary
Paid quarterly (₹625 per quarter)
Paid twice a year (₹1,250 each time)
Maharashtra Professional Tax Slabs
Detailed slab rates for Maharashtra - the most common PT state
| Monthly Salary | PT Amount |
|---|---|
| Up to ₹7,500 | Nil |
| ₹7,501 - ₹10,000 | ₹175/month |
| Above ₹10,000 | ₹200/month (₹300 in February) |
Why ₹300 in February?
States Without Professional Tax
Good news if you work in these states - no PT deduction!
Tax Benefit - Section 16 Deduction
Professional tax paid is fully deductible from gross salary under Section 16 of Income Tax Act, reducing your taxable income
Compliance for Employers
Mandatory steps for employers operating in PT-applicable states
Register for PT
Within 30 days of business commencement in applicable states
Deduct PT from Salary
Monthly deduction as per state slabs
Deposit by 20th
Deposit PT to state government by 20th of next month
File Annual Return
Submit annual PT return with employee details
Issue PT Certificates
Provide PT deduction certificates to employees for tax filing