Professional Tax by State in 2026: Maharashtra, Karnataka, Telangana & More

Why professional tax depends on your state

Professional tax is a state levy, so there is no single India-wide salary slab. For example, Maharashtra’s current schedule can charge ₹200 per month with ₹300 in February for specified salary/wage earners above the relevant threshold, while Karnataka’s current framework taxes salary/wage earners at ₹25,000 or above and uses a ₹200 monthly base with the current state amendments. Always check the state’s latest notification because slabs and exemptions differ.

Before using a state professional-tax figure

What is state-specific

• Professional tax is state-specific.
• Do not copy one state’s ₹200 number into every payslip article.
• Maharashtra has gender/threshold details in its current schedule.
• Karnataka amended its profession-tax law again in 2026.
• Employer deduction/remittance rules are separate from the employee’s income-tax computation.

Two verified state examples

These examples show why “professional tax = ₹200” is not a universal Indian payroll rule.

How to verify your state

• Use the state commercial tax/GST/profession-tax department—not a payroll blog—as the primary source.
• Confirm effective date and whether a newer amendment changed only filing rules or the actual rate schedule.
• Check salary threshold, monthly/annual rate, February special amount and exemptions.
• Check whether the state/UT levies professional tax at all.

Professional tax and income tax are different

Professional tax is collected under state law. Income tax is a central tax. The fact that professional tax appears on a payslip does not mean it is TDS, and the income-tax treatment of the payment depends on the applicable regime/law.

Why payroll can differ after a transfer

A transfer from Bengaluru to Delhi, Mumbai or Hyderabad can change professional tax even if CTC is unchanged, because the employing location and state rules can change. Payroll cut-off dates and employer registrations also matter. Reconcile the line item after any inter-state transfer.

Use payroll location and the current state schedule

Professional tax is driven by the applicable state law and payroll jurisdiction, not by the employee’s income-tax regime. Salary bands, monthly amounts, February adjustments and exemptions can differ by state, so a national rule-of-thumb such as “₹200 per month everywhere” is not reliable enough for payroll checking.

For a transfer, remote-work arrangement or employer with establishments in more than one state, first identify which registration and state schedule payroll is applying for the relevant period. Then check the employee category and salary band against that state’s current notification. The residential address alone does not automatically tell you which professional-tax schedule an employer should deduct under.

Professional tax should also be kept separate from central income-tax TDS. It is a state levy deducted through payroll; it is not the same thing as the monthly section 192 TDS calculation. If the amount on your payslip looks wrong, verify the state schedule first, then check whether payroll has applied the correct salary band and exemption.

When an employee transfers between states, payroll should not simply continue the old deduction. The employer has to apply the law for the relevant establishment and period. Exemptions can also depend on the employee category, so a table that omits them can overstate tax.

Professional tax is imposed under state law, which means there is no safe national slab table. Maharashtra's official schedule and Karnataka's Commercial Taxes Department are good examples of how the details can diverge. Maharashtra uses salary thresholds that differ by category and reaches the familiar ₹2,500 annual amount through ₹200 in most months and ₹300 in February for specified earners. Karnataka's schedule uses its own salary threshold and monthly rate, and the state enacted another profession-tax amendment in March 2026.

Why a state-by-state source check is essential

Professional tax is not a uniform national payroll levy. Liability, salary thresholds, monthly amounts, special months, exemptions and employer procedures can vary by state and can change through state notifications. Use the employee's work-state rule for the relevant period and verify it on that state's official tax portal before payroll or filing decisions.

Transfers can change the payroll deduction mid-year

A remote employee can trigger payroll confusion when employer location and work state differ. Professional tax is state legislation, so payroll teams should verify the registration, place-of-employment facts, current schedule and exemptions rather than applying a national template.

Professional-tax mistakes in payroll checks

• Mixing tax years or assessment years.
• Treating TDS as the final tax liability.
• Using gross CTC where a statutory formula requires a different salary/wage definition.
• Assuming an exemption or deduction is available under every tax regime.
• Ignoring state-specific payroll rules such as professional tax.

Payroll teams should retain the state notification trail

For employees who relocate or work across states, record the effective date of the work-location change and the notification used for each payroll period. That audit trail is more reliable than copying a national summary table, particularly when a state changes thresholds, exemptions or a February adjustment during the year.

Keep professional tax separate from income-tax estimation

Frequently asked questions