Professional Tax Registration: State-wise Guide (2026)
Professional Tax (PT) is a state-level tax on salaries and professional/business income, capped by law at ₹2,500 per year. It is levied by roughly 20 states and union territories — notably Maharashtra, Karnataka, West Bengal, Gujarat, Tamil Nadu and Telangana — while Delhi, Haryana, Uttar Pradesh and Punjab, among others, do not levy it at all.
States that levy Professional Tax (examples)
| State | Levies PT? |
|---|---|
| Maharashtra, Karnataka, West Bengal, Gujarat | Yes |
| Tamil Nadu, Telangana, Andhra Pradesh, Madhya Pradesh | Yes |
| Delhi, Haryana, Uttar Pradesh, Punjab, Rajasthan | No |
Two types of registration
- PTEC (Professional Tax Enrolment Certificate): for the business/professional's own PT liability
- PTRC (Professional Tax Registration Certificate): for an employer to deduct and deposit PT on behalf of employees
How PT is calculated
PT is slab-based on monthly salary, set independently by each state within the ₹2,500/year cap. For example, Maharashtra's slabs differ from Karnataka's, even though both are capped at the same annual maximum.
Who must register
Any employer in a PT-levying state must register for PTRC and deduct PT from employee salaries. Self-employed professionals (doctors, CAs, consultants, freelancers) in those states must register for PTEC and pay their own PT directly.
Penalty for non-registration or late payment
Penalties vary by state but typically include a registration delay penalty plus interest on unpaid PT, and in some states a fixed late-filing penalty per return period.
Operating across multiple states? Our compliance team handles PT registration and monthly deduction wherever your employees are based.