corporate law

Published on 6 April 2025

Comprehensive Guide to Professional Tax Rates in India for 2024-2025

Understanding Professional Tax in India for 2024-2025

Professional tax is a direct tax levied by state governments in India on individuals engaged in various professions, trades, and employment. This tax is deducted at source by employers, ensuring compliance for employees while presenting varying rates across different states and union territories. During the fiscal year 2024-2025, professional tax is applicable in 21 states and 1 union territory, with rates determined based on income levels.

Key Highlights of Professional Tax

  • Assessment Variability: Professional tax rates differ significantly across states, reflecting varied state taxation policies.
  • Employer Deduction: Employers deduct the tax at source, easing the burden of compliance for employees.
  • Income-Based Tax Rates: Rates are set according to monthly or annual income thresholds.

State-wise Professional Tax Slab Rates (2024-2025)

Here are the professional tax slab rates for various states:

Andhra Pradesh

  • Monthly Income
    • Up to ₹15,000: NIL
    • From ₹15,001 to ₹20,000: ₹150
    • Above ₹20,000: ₹200

Assam

  • Monthly Income
    • Up to ₹10,000: NIL
    • From ₹10,001 to ₹15,000: ₹150
    • From ₹15,001 to ₹25,000: ₹180
    • Above ₹25,000: ₹208

Bihar

  • Annual Income
    • Up to ₹3,00,000: NIL
    • From ₹3,00,001 to ₹5,00,000: ₹1,000
    • From ₹5,00,001 to ₹10,00,000: ₹2,000
    • Above ₹10,00,000: ₹2,500

Chhattisgarh

  • Annual Income
    • Up to ₹40,000: NIL
    • ₹40,001–₹50,000: ₹360 per year
    • ₹50,001–₹60,000: ₹720 per year
    • ₹60,001–₹80,000: ₹1,080 per year
    • ₹80,001–₹1,00,000: ₹1,200 per year
    • ₹1,00,001–₹1,50,000: ₹1,440 per year
    • ₹1,50,001–₹2,00,000: ₹1,800 per year
    • ₹2,00,001–₹2,50,000: ₹2,160 per year
    • ₹2,50,001–₹3,00,000: ₹2,280 per year
    • Above ₹3,00,000: ₹2,400 per year

Gujarat

  • Monthly Income
    • Up to ₹12,000: NIL
    • Above ₹12,000: ₹200

Jharkhand

  • Annual Income
    • Up to ₹3,00,000: NIL
    • From ₹3,00,001 to ₹5,00,000: ₹1,200
    • Above ₹10,00,000: ₹2,500

Karnataka

  • Monthly Income
    • Up to ₹24,999: NIL
    • ₹25,000 and above: ₹200
    • ₹300 for February

Kerala

  • Half-Yearly Income
    • Up to ₹11,999: NIL
    • ₹12,000–₹17,999: ₹120
    • ₹18,000–₹29,999: ₹180
    • ₹30,000–₹44,999: ₹300
    • ₹45,000–₹59,999: ₹450
    • ₹60,000–₹74,999: ₹600
    • ₹75,000–₹99,999: ₹750
    • ₹1,00,000–₹1,24,999: ₹1,000
    • ₹1,25,000 and above: ₹1,250

Madhya Pradesh

  • Annual Income
    • Up to ₹2,25,000: NIL
    • From ₹3,00,001 to ₹4,00,000: ₹166 per month for the first 11 months, ₹174 for the 12th month

Maharashtra

  • Monthly Income

    • For Male Employees:
    Monthly Gross SalaryProfessional Tax Payable
    Up to ₹7,500Nil
    ₹7,501 to ₹10,000₹175 per month
    Above ₹10,000₹200 per month (₹300 in February)
    • For Female Employees:
    Monthly Gross SalaryProfessional Tax Payable
    Up to ₹25,000Nil
    Above ₹25,000₹200 per month (₹300 in February)

Manipur

  • Annual Income
    • Up to ₹50,000: NIL
    • From ₹50,001 to ₹1,25,000: ₹2,400

Meghalaya

  • Annual Income
    • Up to ₹50,000: NIL
    • Above ₹5,00,000: ₹2,500

Mizoram

  • Monthly Income
    • Up to ₹5,000: NIL
    • From ₹5,001 to ₹8,000: ₹75
    • Above ₹15,000: ₹208

Nagaland

  • Monthly Income
    • Up to ₹4,000: NIL
    • Above ₹12,000: ₹208

Odisha

  • Annual Income
    • Up to ₹1,59,999: NIL
    • Above ₹3,00,000: ₹200 for the first 11 months; ₹300 for the last month

Puducherry

  • Half-Yearly Income
    • Up to ₹99,999: NIL
    • From ₹0,00,001: ₹1,250

Punjab

  • Professional Tax Rate
    • Salary Income (Above ₹2,50,000): ₹200 per month
    • Business and Profession: ₹2,400 per annum

Sikkim

  • Monthly Income
    • Up to ₹20,000: NIL
    • Above ₹40,000: ₹200

Tamil Nadu

  • Monthly Income
    • Up to ₹21,000: NIL
    • Above ₹75,000: ₹1,095

Telangana

  • Monthly Income
    • Up to ₹15,000: NIL
    • Above ₹20,000: ₹200

Tripura

  • Monthly Income
    • Up to ₹7,500: NIL
    • Above ₹15,000: ₹208

West Bengal

  • Monthly Income
    • Up to ₹10,000: NIL
    • Above ₹40,000: ₹200

Conclusion

Understanding professional tax is crucial for individuals navigating their financial responsibilities in India. The tax rates vary significantly from state to state, making it essential to be aware of these rates. For specific questions or clarifications related to professional tax, it is advisable to consult a tax professional or advisor.