Why is professional tax so small?

The Constitution caps it at 2,500 a year under Article 276. That limit has not been revised in decades, so it has become nominal in real terms.

Do all states levy it?

No. Several including Delhi, Haryana and Uttar Pradesh levy none at all, which is why it depends on where you work rather than where you live.

Salary & HRstatutoryIndia only

Professional Tax Calculator

Professional tax by state. It is levied by states, not the centre, and the Constitution caps it at 2,500 a year, which is why the amount is small and the rules vary so much.

Also called: ptax calculator, state professional tax.

Annual professional tax

₹2,500

₹2,500 a year, ₹208 a month. Maharashtra levies professional tax above a monthly threshold. Defaults reflect the position as most recently legislated. Check the current Finance Act before relying on this. It is deductible from salary income, which saves ₹750 at a 30% slab.

Monthly

₹208

Income tax saved by the deduction

₹750

Net cost after the deduction

₹1,750

Constitutional annual cap

₹2,500

On the state position

Maharashtra levies professional tax above a monthly threshold. Defaults reflect the position as most recently legislated. Check the current Finance Act before relying on this.

How this is calculated

Computed from the published rates for the tax year you selected, which is not necessarily the current year. A calculation, not tax advice, and it does not know anything about your circumstances beyond the figures entered.

Method and background

This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for India change on a published schedule; the effective date is shown on every rule-based tool.

How this is calculated

Professional tax is a state levy on employment income, deducted by the employer and paid to the state. Article 276 of the Constitution caps it at 2,500 a year, which is why every state schedule tops out near that figure. Several states levy none at all. It is deductible from salary income under section 16, so the net cost is lower than the amount deducted. Maharashtra has a differential threshold for women, which is one of the few gender-specific provisions still in Indian tax.

Article 276 of the Constitution caps professional tax at 2,500 a year across all states

PT: Professional tax

Worked examples

Each of these is asserted on every build. If a change to the engine ever moved one of these answers, the build would fail before the page could print it.

Maharashtra above the threshold

Monthly salary: ₹85,000
State: Maharashtra
Gender: Male

Annual professional tax₹2,500

The constitutional cap

Open this example

a state with no levy

Monthly salary: ₹85,000
State: A state with no professional tax
Gender: Male

Annual professional tax₹0

boundary

Open this example

Karnataka below its threshold

Monthly salary: ₹20,000
State: Karnataka
Gender: Male

Annual professional tax₹0

degenerate case

Open this example

Method and limits

What it assumes

Standard salaried employment in the selected state.

What it deliberately does not model

State schedules change and are set by state legislation rather than the Finance Act.
Rules for professionals and business owners differ from salaried employees.

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Frequently asked questions

Why is professional tax so small?: The Constitution caps it at 2,500 a year under Article 276. That limit has not been revised in decades, so it has become nominal in real terms.
Do all states levy it?: No. Several including Delhi, Haryana and Uttar Pradesh levy none at all, which is why it depends on where you work rather than where you live.