Free HR tools

Professional tax calculator

Work out monthly and yearly professional tax for an employee by state.

State of workGross salary, per month

₹

Employee

PT follows the state where the employee works, not where the company is registered.

Professional tax a year

₹2,500

Maharashtra

Monthly deduction₹200

February deduction₹300

Total for the year₹2,500

Indicative only. See the Maharashtra payroll guide for the slab, exemptions and the source.

How it works

Professional tax (PT) is a state tax on employment. The employer deducts it from salary and pays it to the state or the local body. Each state sets its own slab, so the same salary can attract ₹200 a month in one state and nothing in another.

The Constitution caps PT at ₹2,500 a year per person (Article 276). States that reach the cap with ₹200 a month collect a higher amount in February, usually ₹300. Tamil Nadu and Kerala levy PT half-yearly on six months of income, collected by the local body.

Delhi, Haryana, Uttar Pradesh and Rajasthan do not levy PT on salaried employees. The calculator covers the states with a NeevHR state payroll guide; each guide gives the source and review date of its slab.

Formula

Monthly states: find the slab for the monthly gross salary; that is the deduction for the month
Where the slab has a February amount, the year is 11 × the monthly amount + the February amount
Half-yearly states: find the slab for six months of salary; the year is 2 × the half-yearly amount
PT follows the state where the employee works

Worked example

Monthly salary of ₹30,000

Maharashtra (man): ₹200 a month, ₹300 in February, ₹2,500 a year
Karnataka: ₹200 a month, ₹300 in February, ₹2,500 a year
Gujarat: ₹200 a month, ₹2,400 a year
Telangana: ₹200 a month, ₹2,400 a year
Kerala: half-yearly income ₹1,80,000, so ₹1,250 a half-year, ₹2,500 a year
Delhi: nil

Common mistakes to avoid

Applying the head-office state's slab to employees who work in another state.
Forgetting the higher February deduction where the state's slab has one.
Deducting Maharashtra PT from a woman earning up to ₹25,000 a month, which is exempt.
Treating Tamil Nadu or Kerala PT as monthly when it is levied on half-yearly income.
Paying under the employee's registration (enrolment) instead of the employer's registration certificate.