Professional Tax

Professional tax is levied by state governments, not the Centre, so the slabs, the payment frequency and even whether it exists at all depend on where the employee works.

Professional Tax

State-specific slabs. Indicative only — confirm with the latest state notification.

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How it is calculated

1

Identify the state of the employee's place of work — not the head office, and not their home state.

2

Apply that state's slab to monthly gross salary.

3

Deduct from salary and remit to the state authority on the prescribed cycle.

Worked example

Tamil Nadu levies professional tax half-yearly on a slab basis, so a salary in the upper slab attracts a fixed half-yearly amount rather than a percentage.

What to watch for

Frequently asked questions

Which state applies if the employee works remotely?

Generally the state where the employee actually works. Distributed teams often need registrations in several states, which is a common compliance gap.

Is professional tax deductible from income tax?

Yes, under Section 16(iii) of the Income Tax Act — but only if you are on the old regime.

More Statutory & Tax calculators

There is an easier way to do this each month.

Garuda HR looks after payroll, attendance, leave and statutory compliance for Indian teams — the same arithmetic, run for you every month, with a full audit trail. We would be glad to show you around.