Professional tax by state · State · FY 2026-27
Professional tax in Punjab
Professional tax in Punjab costs ₹2,400 a year, and it is charged on income-tax payers rather than on a wage band — it applies only where net taxable income exceeds the basic exemption limit. Rate, statute and source below.
- Costs you at most
- ₹2,400 a year
- Charged on
- Income-tax payers
- Constitutional cap
- ₹2,500 a year
- Last verified
The Punjab slab table
| Monthly wage | Tax per month | Over a full year |
|---|---|---|
| Every liable person | ₹200 | ₹2,400 |
- Every liable person — ₹200 × 12 months = ₹2,400 a year.
When it is collected
Banded on the monthly wage; the amount is deducted every month.
Liability is a predicate, not a wage band: the levy applies only to a person whose net taxable income exceeds the basic exemption limit. Punjab's State Development Tax works this way.
What is worth knowing about Punjab
Punjab's levy is not a wage band. It is Rs 200 a month for anyone in a trade, calling, profession or employment who is an income-tax payee — that is, whose net taxable income exceeds the basic exemption limit. We apply it from the taxable income we already compute for you, rather than guessing a wage threshold. Rs 2,400 a year. Because it is named a development tax rather than a professional tax, Punjab falls out of almost every 'professional tax by state' table.
Punjab charges this on income-tax payers rather than on a wage band, so it follows your taxable income, not your salary alone.
The cap every state is under
Article 276(2), Constitution of India limits professional tax to ₹2,500 a person a year, whatever a state’s own schedule says. Several states are written to land exactly on it — that is why Karnataka and Maharashtra charge a different amount in one month of the year, and why an annual total on this page never exceeds ₹2,500.
Where this comes from
Statute: Punjab State Development Tax Act, 2018 (in force 19 April 2018)
Read from psdt.punjab.gov.in, last verified . This dataset is re-checked quarterly — the failure mode here is a state joining or leaving the list, not a slab moving, so we search for repeals and re-introductions every cycle. The full method is on our methodology page.
Your actual take-home
Professional tax is one line on a payslip, and rarely the line that decides anything. The one that does is what reaches your account after income tax, EPF and this deduction have all been taken. Our CTC to in-hand calculator, opened on Punjab, carries the schedule above through automatically, alongside income tax under the Income-tax Act 2025, EPF and gratuity, and shows the working for every line. Put your own CTC in it and read the figure rather than the rate.
One thing worth knowing before you do: professional tax is deductible from salary under s.19 of the Income-tax Act 2025 only under the old regime. Under the new regime it leaves your pay and buys nothing back. Whether that is worth anything depends on the rest of your deductions, so compare both regimes on Punjab figures — it computes each one and says which pays less tax on the numbers you enter, and nothing beyond that.