A Complete Guide to Professional Tax in India: Rates & Computations
Pagaar India Editorial
July 21, 2026
8 min read
Professional Tax is a state-level tax levied on salaried employees and professionals (doctors, lawyers, chartered accountants). It is deducted by the employer from the monthly salary and paid to the state government.
Key Features of Professional Tax
- The maximum amount that can be charged per year is capped at INR 2,500 by the Constitution of India.
- Not all states levy Professional Tax. Delhi, for instance, does not collect it, while states like Maharashtra, Karnataka, and Tamil Nadu do.