Professional Tax by state.

Each state decides whether to levy it, up to ₹2,500 a person a year. Of the six states we cover, Karnataka and Punjab levy one; the other four do not.

Updated 18 October 2026 from the Constitution and the states' Acts. How we check

Most a person paysa year, Article 276(2)
₹2,500
States that levy itof the six we cover
2
Karnatakaon ₹25,000 or more
₹200
Punjabincome-tax payers
₹200
Professional tax on salaries in the six states we cover
StateLeviedOn salariesWho pays
KarnatakaYes₹200 a month, ₹300 in FebruarySalary of ₹25,000 or more in the month
PunjabYes₹200 a month, as a development taxIncome-tax payers only
DelhiNoNone
HaryanaNoNone
Uttar PradeshNoNone
UttarakhandNoNone

In Karnataka and Punjab the employer deducts the tax from salary and pays it every month.

Questions

What is the most professional tax anyone can pay?

₹2,500 a year. Article 276(2) of the Constitution caps the tax on professions, trades, callings and employments at that amount per person.

Does Punjab have professional tax?

It levies the Punjab State Development Tax instead: ₹200 a month for people assessable to income tax on their salary, deducted by the employer. Workers below the income-tax threshold pay nothing.

Professional Tax in Karnataka Labour Welfare Fund by state

Sources (5)
  1. Constitution of India, Article 276(2): professional tax of at most ₹2,500 a person a year Constitution of India, as on 1 May 2024, 1 May 2024. Legislative Department, Ministry of Law and Justice.
  2. Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, with its amending Acts to 2026 (sections 2 to 12 and the Schedule; PRS copy) Karnataka Act 35 of 1976, 1 April 1976. Government of Karnataka.
  3. Karnataka Tax on Professions, Trades, Callings and Employments (Amendment) Act, 2025: ₹200 a month on ₹25,000 or more, ₹300 in February, from 1 April 2025 Karnataka Act No. 33 of 2025, 15 April 2025. Karnataka Gazette Extraordinary, Part IVA No. 232 (Commercial Taxes Department copy).
  4. Punjab State Development Tax Act, 2018 (₹200 a month; section 5: the employer deducts it) Punjab Act 11 of 2018, 19 April 2018. Government of Punjab.
  5. Punjab State Development Tax (Amendment) Rules, 2021 (rules 12 and 14: monthly deposit) G.S.R. 16/P.A.11/2018/S.23/Amd.(1)/2021, 26 February 2021. Department of Taxation, Punjab.

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