Learn · Your first salary
Professional tax: the small line on your payslip
A state tax of up to ₹2,500 a year. What it is and why it differs by state.
2 min read
A tax set by your state
Professional tax is charged by some state governments on people who earn. Your employer deducts it from your salary and pays it to the state. You don't need to do anything.
₹2,500 a year
The most any state can charge
The limit is in the Constitution. Karnataka charges ₹200 a month once your monthly salary crosses ₹25,000.
It depends on where you work
Karnataka, Maharashtra, West Bengal, Tamil Nadu, Telangana and several other states charge it, each with its own slabs. Delhi, Haryana, Rajasthan and Uttar Pradesh don't. It follows the state where you work, not where you're from.
Guess first
You move from a job in Bengaluru to one in Delhi. What happens to your professional tax?
See the answer
It stops. Delhi doesn't charge professional tax. It follows the state where you work, not where you're from.
And your income tax
Under the old tax regime, professional tax is subtracted from your taxable salary. The new regime doesn't allow it. Either way, it's small: at most ₹208 a month.
Words from this lesson
- Professional tax: A small state tax on salaries, at most ₹2,500 a year.
Next in Your first salary: Old or new tax regime: which one is yours