Professional Tax Calculator

It is a small tax that state governments levy on income from salary, profession, trade or employment. Your employer deducts it from your salary and pays it to the state. It is allowed as a deduction from salary under the income tax law (old regime only), and no state can charge more than 2,500 rupees in a year under Article 276 of the Constitution.

It depends on your state and your salary slab. In most paying states the top slab works out to about 200 rupees a month, so roughly 2,400 to 2,500 rupees a year. Some states deduct a slightly higher amount in the last month so the yearly total reaches 2,500.

Several states and union territories do not levy it, including Delhi, Haryana, Uttar Pradesh, Uttarakhand, Rajasthan, Himachal Pradesh, Jammu and Kashmir, Arunachal Pradesh and Chandigarh. If you work in these places, no professional tax is deducted.

It varies by state. Most states deduct it monthly. A few collect it half yearly (Tamil Nadu, Kerala, Puducherry) or yearly (Bihar, Manipur). Whatever the cycle, the total for the year is capped at 2,500 rupees.

Professional tax is a state levy and is charged regardless of your income tax regime. However, claiming it as a deduction while computing income tax is allowed only under the old regime. The amount your state deducts does not change.