Professional tax is a tax on professions, trades, callings and employments. It is levied under State law, and in some States by local bodies such as municipal corporations. For salaried staff, the employer usually deducts it from salary and pays it to the government or local body. Not every State levies it, and the slabs, forms and deadlines differ widely. This guide explains the constitutional cap, summarises the States where we have confirmed a levy from official sources and sets out the basics for employers. TrueOrbis does not register for or file professional tax; this guide is information only, so confirm your obligations with the department concerned or a qualified professional.
What professional tax is, and the ₹2,500 cap
Article 276 of the Constitution allows States and local bodies to tax professions, trades, callings and employments. Article 276(2) caps the total amount payable by any one person to the State, or to any one local authority in the State, at ₹2,500 a year. The cap was raised from ₹250 by the Constitution (Sixtieth Amendment) Act, 1988, as recorded in a 1996 Supreme Court judgment that quotes the Article.
Within that cap, each State decides whether to levy the tax, who must pay, the slabs and who collects it. That is why an employer with staff in several States can face quite different rules in each.
Maharashtra
Maharashtra levies the tax under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975, administered through the State GST department (mahagst.gov.in). According to the Act as published by MahaGST, the salary slabs are:
- Men: nil up to ₹7,500 a month; ₹175 a month for salaries of ₹7,501 to ₹10,000; ₹2,500 a year above ₹10,000.
- Women: nil up to ₹25,000 a month; ₹2,500 a year above ₹25,000.
Karnataka and Telangana
Karnataka levies the tax under the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976, administered by the Commercial Taxes Department. The amending Act 33 of 2025, in force from 1 April 2025, set the highest slab at ₹200 a month and ₹300 in February, which totals ₹2,500 a year. Check lower slabs and the current online service with the department.
Telangana levies the tax under the Telangana Tax on Professions, Trades, Callings and Employments Act, 1987. The schedule published by the Commercial Taxes Department sets salary slabs of nil up to ₹15,000 a month, ₹150 a month for ₹15,001 to ₹20,000, and ₹200 a month above ₹20,000. Registration is handled on the department’s portal, ptax.tgct.gov.in.
West Bengal
West Bengal levies the tax under the West Bengal State Tax on Professions, Trades, Callings and Employments Act, 1979, administered by the Directorate of Commercial Taxes. The Act was amended by the West Bengal Finance Act, 2026, and revised salary slabs have been announced for October 2026. A draft notification of 18 August 2026 sets out these monthly amounts:
- Salary up to ₹20,000: nil.
- Up to ₹30,000: ₹100.
- Up to ₹50,000: ₹140.
- Up to ₹1 lakh: ₹170.
- Above ₹1 lakh: ₹208.
Gujarat and Tamil Nadu
Gujarat levies professional tax, and collection is handled partly by municipal corporations. Surat Municipal Corporation, for example, describes itself as the designated authority for its area. According to its FAQ, salaries up to ₹12,000 a month are not taxed and salaries above that bear ₹200 a month. Outside the corporations, check which authority collects the tax for your location.
In Tamil Nadu the tax is levied by urban local bodies under the Tamil Nadu Urban Local Bodies Act, 1998 and the Tamil Nadu Urban Local Bodies Rules, 2023, and is charged half-yearly. Greater Chennai Corporation’s press release of 4 August 2026 says employers deduct it from salaries for August and January, and that tax deducted from August 2026 salaries was due by 30 September 2026 with the prescribed return. Its half-yearly slabs, revised from the second half of 2024-25, are:
- Half-yearly income 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.
If your State is not listed here
If your State isn’t covered here, check your State’s commercial tax department; not every State levies it. Where local bodies collect the tax, as in Tamil Nadu and parts of Gujarat, the rates can also vary by city. For businesses in Delhi NCR with staff in Delhi, Uttar Pradesh or Haryana, check the position with the department concerned before assuming either way.
For West Bengal in particular, the figures above come from a draft notification. Check comtax.wb.gov.in before relying on them.
What employers usually need to do
The steps below are general. The forms, due dates and penalties come from each State’s Act and rules, or from the local body, so confirm them before you start payroll in a new State.
- Find out whether the State, or the local body, where each employee works levies professional tax.
- Register or enrol with the department or local body where the law requires it.
- Deduct the correct amount from salary for each employee, using the current slabs.
- Pay the tax deducted to the government or local body by the due date, and file the prescribed returns.
- Keep payroll records that show each deduction, and review the slabs whenever the State announces a change.
Where TrueOrbis fits
TrueOrbis does not register businesses for professional tax, file professional tax returns or advise on payroll tax. We help with business registration, GST and Udyam, and this guide is intended as background when you plan a new office or start hiring in another State. For the professional tax itself, contact the State department or local body, or a qualified tax professional.
Common questions
Can professional tax ever exceed ₹2,500 a year?
Not for any one person paying to a State, or to any one local authority in that State. Article 276(2) of the Constitution caps the total at ₹2,500 a year.
Who is responsible for paying it — the employer or the employee?
For salaried staff the tax relates to the employee’s employment, but the law usually makes the employer responsible for deducting it from salary and paying it over. Greater Chennai Corporation, for example, states that employers are legally responsible for deduction and remittance.
Our staff work in two States. Which rules apply?
Each State’s law applies to employment within that State, so check the rules for each location separately. A professional who handles payroll compliance in both States can confirm how to set it up.
Does TrueOrbis file professional tax returns?
No. We provide this guide as information only. We help with business, GST and Udyam registration, and can point you to the relevant department for professional tax.
Sources
Rules, fees and platform requirements change. Always confirm the current position on the official source before you apply.
- Cantonment Board, Mathura v. Krishna Bricks (1996), quoting Article 276(2) (opens in a new tab) — Supreme Court of India
- Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 (opens in a new tab) — Maharashtra Goods and Services Tax Department
- Karnataka professional tax amendment, Act 33 of 2025 (Gazette copy) (opens in a new tab) — Government of Karnataka (copy hosted by TaxGuru)
- Professional tax schedule (opens in a new tab) — Commercial Taxes Department, Telangana
- Draft notification on revised professional tax slabs (18 Aug 2026) (opens in a new tab) — Directorate of Commercial Taxes, West Bengal
- Profession Tax FAQ (opens in a new tab) — Surat Municipal Corporation
- Deduction and remittance of profession tax by employers (press release, 4 Aug 2026) (opens in a new tab) — Greater Chennai Corporation
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