How Professional Tax Works

Professional tax is a state-level levy on salaried income, deducted monthly by the employer. Each state has its own slab table keyed to monthly gross salary; the annual total is capped at ₹2,500 by Article 276 of the Constitution. The tax is deductible from salary income under Section 16(iii).

Worked Example

At ₹50,000/month in Maharashtra, PT is ₹200/month (₹2,400/year — under the cap). The same salary in Karnataka also costs ₹200/month, but in Tamil Nadu the slab is ₹760/month, hitting ₹2,400/year.

Comparing States

PT differences are small in absolute terms — at most ₹100–900/month — but they vary with your salary band and state of employment. If you work remotely or are choosing between offers in different states, this calculator shows exactly what each location deducts from your pay.