How is professional tax deducted and which Indian states require it?

Professional tax is a state-level tax on employment, deducted monthly by the employer from salary and deposited with the state government; it is not levied uniformly across India. It applies in states such as Maharashtra, Karnataka, West Bengal, Tamil Nadu, Andhra Pradesh, Telangana, Gujarat, and Madhya Pradesh, while several states and union territories — including Delhi, Uttar Pradesh, and Haryana — do not impose it.

The amount is based on income slabs set by each state, subject to a constitutional maximum of ₹2,500 per year per person. Because rates, slabs, and filing frequency differ by state, an employer with employees in multiple states must register and comply separately in each applicable state, deducting professional tax according to the rules of each work location.