Professional Tax in India
Professional Tax is a small but mandatory deduction that reduces your take-home salary. This page explains how Professional Tax works in India, who pays it, and how it impacts your salary.
What is Professional Tax?
Professional Tax is a tax levied by state governments on salaried individuals, freelancers, and professionals. Employers deduct it from salary and deposit it with the state government.
Is Professional Tax Part of CTC?
Professional Tax is not an employer expense. It is a statutory deduction from your salary and directly reduces your monthly take-home pay.
Learn how deductions affect salary in our CTC calculation formula.
Professional Tax Calculation
Professional Tax ≈ ₹200 – ₹250 per monthMaximum annual Professional Tax is ₹2,500.
State-wise Professional Tax
- Some states deduct monthly
- Some deduct once or twice a year
- Some states do not levy Professional Tax
Professional Tax – Frequently Asked Questions
What is Professional Tax in India?
Professional Tax is a state-level tax imposed on salaried employees and professionals in India. It is deducted from salary by the employer and paid to the state government.
How much Professional Tax is deducted per month?
Professional Tax usually ranges between ₹200 and ₹250 per month depending on the state. The maximum Professional Tax payable in a year is capped at ₹2,500.
Is Professional Tax applicable in all states?
No. Professional Tax is applicable only in states and union territories that have enacted it. Some states do not levy Professional Tax at all.
Is Professional Tax part of CTC?
Professional Tax is not an employer cost but is deducted from your salary. It reduces your take-home pay and may appear in your salary structure as a statutory deduction.
Want to calculate your exact take-home salary after all deductions?
Calculate Your Take-Home Salary