Professional Tax Slab in Madhya Pradesh (2026)
What is Professional Tax?
Unlike income tax, professional tax is usually a set amount that is deducted only if a person earns more than a specific monthly income. For example, in the state of Madhya Pradesh, any person earning between ₹21,001 to ₹30,000 is eligible to pay a monthly professional tax of ₹135. Each state has their own professional tax slabs. Moreover, a state may choose to change their professional tax slabs as per Article 276 of the Constitution of India.
While professional tax rates vary from state to state, Article 276 of the Constitution of India clearly stipulates that a State Government cannot impose a professional tax that is higher than ₹2,500 per month.
Who Collects Professional Tax?
In states where professional tax is applicable, the Commercial Tax Department of the state is responsible for collecting the amount. Your employer will deduct the professional tax amount from your salary and then submit it to the Commercial Tax Department. It is then the tax department’s duty to forward the collected amount to the state government.
Professional Tax applies to:
- Salaried employees working in establishments registered under the applicable local authority.
- Employers who are responsible for deducting and remitting the tax.
- Self-employed professionals, traders, and business owners, where applicable under the local authority's regulations.
Who Needs to Pay Professional Tax?
Both salaried and self-employed people need to pay professional tax. While salaried individuals pay professional tax via TDS, self-employed workers will need to submit the tax themselves.
People who need to pay professional tax include:
- Any salaried person. Generally, salaried individuals need not pay professional tax directly. Their employer will directly deduct the professional tax amount from their monthly salary.
- Any self-employed professional who earns more than the stipulated income limited (as per State’s professional tax slab).
- Any company/business/private firm.
- Income earned by Hindu Undivided Families is also eligible for professional tax.
Professional Tax Slab in Madhya Pradesh (2026)
Madhya Pradesh (MP) levies Professional Tax (PT) under the Madhya Pradesh Vritti Kar Adhiniyam, 1995. Professional Tax is applicable to salaried employees, professionals, traders, and other persons covered under the Act. Employers deduct Professional Tax from eligible employees' salaries and deposit it with the Madhya Pradesh Commercial Tax Department.
Madhya Pradesh Professional Tax Slab (2026)
Professional Tax in Madhya Pradesh is calculated based on annual salary/income, with monthly deductions made accordingly.
| Annual Salary / Income | Monthly Professional Tax | Annual Professional Tax |
|---|---|---|
| Up to ₹2,25,000 | Nil | Nil |
| ₹2,25,001 – ₹3,00,000 | ₹125 per month | ₹1,500 |
| ₹3,00,001 – ₹4,00,000 | ₹166 per month* | ₹2,000 |
| Above ₹4,00,000 | ₹208 per month* | ₹2,500 |
*In higher slabs, the final month deduction is adjusted to reach the annual limit:
- ₹3,00,001 – ₹4,00,000 slab: ₹166 for 11 months and ₹174 in the final month.
- Above ₹4,00,000 slab: ₹208 for 11 months and ₹212 in the final month.
Madhya Pradesh Professional Tax Calculation Examples (2026)
| Monthly Salary | Annual Income | Monthly PT | Annual PT |
|---|---|---|---|
| ₹15,000 | ₹1,80,000 | Nil | Nil |
| ₹20,000 | ₹2,40,000 | ₹125 | ₹1,500 |
| ₹30,000 | ₹3,60,000 | ₹166 | ₹2,000 |
| ₹50,000 | ₹6,00,000 | ₹208 | ₹2,500 |
Key Highlights of Madhya Pradesh Professional Tax
- Applicable State: Madhya Pradesh
- Act: Madhya Pradesh Vritti Kar Adhiniyam, 1995
- Calculation Basis: Annual salary/income
- Salary up to ₹2,25,000 per year: Nil PT
- Maximum Annual Professional Tax: ₹2,500
- Monthly deduction: Based on applicable income slab
- Applicable Cities: Bhopal, Indore, Jabalpur, Gwalior, Ujjain, Sagar, Ratlam, Rewa, and all districts of Madhya Pradesh follow the same PT structure.
Employer Responsibilities in Madhya Pradesh
Employers operating in Madhya Pradesh must:
- Obtain Professional Tax registration/enrolment wherever applicable.
- Calculate PT based on employee annual salary.
- Deduct Professional Tax from monthly payroll.
- Deposit collected PT within the prescribed timeline.
- File applicable Professional Tax returns.
- Maintain payroll and statutory compliance records.
Professional Tax Slab in Bhopal (2026)
Bhopal follows the Madhya Pradesh Professional Tax (PT) rules under the Madhya Pradesh Vritti Kar Adhiniyam, 1995. Professional Tax slabs applicable in Bhopal are the same as those applicable throughout Madhya Pradesh. The tax is calculated based on annual income/salary, and employers deduct the applicable amount from employee salaries.
Bhopal Professional Tax Slab (2026)
| Annual Salary / Income | Monthly Professional Tax | Annual Professional Tax |
|---|---|---|
| Up to ₹2,25,000 | Nil | Nil |
| ₹2,25,001 – ₹3,00,000 | ₹125 per month | ₹1,500 |
| ₹3,00,001 – ₹4,00,000 | ₹166 per month* | ₹2,000 |
| Above ₹4,00,000 | ₹208 per month* | ₹2,500 |
*For higher slabs, the final month deduction is adjusted:
- ₹3,00,001 – ₹4,00,000: ₹166 for 11 months and ₹174 in the last month.
- Above ₹4,00,000: ₹208 for 11 months and ₹212 in the last month.
Bhopal Professional Tax Calculation Examples (2026)
| Monthly Salary | Annual Income | Monthly PT | Annual PT |
|---|---|---|---|
| ₹15,000 | ₹1,80,000 | Nil | Nil |
| ₹20,000 | ₹2,40,000 | ₹125 | ₹1,500 |
| ₹30,000 | ₹3,60,000 | ₹166 | ₹2,000 |
| ₹50,000 | ₹6,00,000 | ₹208 | ₹2,500 |
Key Highlights of Bhopal Professional Tax
- Applicable City: Bhopal
- State: Madhya Pradesh
- Act: Madhya Pradesh Vritti Kar Adhiniyam, 1995
- Calculation Basis: Annual salary/income
- Income up to ₹2,25,000 per year: Nil Professional Tax
- Maximum Annual Professional Tax: ₹2,500
- Monthly Deduction: Based on applicable annual income slab
- Applicable Areas: Bhopal, Indore, Jabalpur, Gwalior, Ujjain, Sagar, and other Madhya Pradesh districts follow the same PT structure.
Employer Responsibilities in Bhopal
Employers operating in Bhopal must:
- Obtain Professional Tax registration/enrolment wherever applicable.
- Calculate Professional Tax based on employee annual salary.
- Deduct PT from monthly payroll.
- Deposit collected Professional Tax within the prescribed timeline.
- File required Professional Tax returns.
- Maintain payroll and statutory compliance records.
Professional Tax Slab in Indore (2026)
Indore follows the Madhya Pradesh Professional Tax (PT) rules under the Madhya Pradesh Vritti Kar Adhiniyam, 1995. The Professional Tax slabs applicable in Indore are the same as those applicable throughout Madhya Pradesh. Professional Tax is calculated based on annual salary/income, and employers deduct the applicable amount from employee salaries every month.
Indore Professional Tax Slab (2026)
| Annual Salary / Income | Professional Tax (Per Month) | Annual Professional Tax |
|---|---|---|
| Up to ₹2,25,000 | Nil | Nil |
| ₹2,25,001 – ₹3,00,000 | ₹125 per month | ₹1,500 |
| ₹3,00,001 – ₹4,00,000 | ₹166 per month* | ₹2,000 |
| Above ₹4,00,000 | ₹208 per month* | ₹2,500 |
*Monthly deductions in higher slabs are adjusted in the final month to match the annual Professional Tax amount. For example, ₹166 is deducted for 11 months and adjusted in the 12th month; similarly, ₹208 is adjusted to reach the ₹2,500 annual limit.
Indore Professional Tax Calculation Examples (2026)
| Monthly Salary | Annual Income | Monthly PT | Annual PT |
|---|---|---|---|
| ₹15,000 | ₹1,80,000 | Nil | Nil |
| ₹20,000 | ₹2,40,000 | ₹125 | ₹1,500 |
| ₹30,000 | ₹3,60,000 | ₹166 | ₹2,000 |
| ₹50,000 | ₹6,00,000 | ₹208 | ₹2,500 |
Key Highlights of Indore Professional Tax
- Applicable City: Indore
- State: Madhya Pradesh
- Act: Madhya Pradesh Vritti Kar Adhiniyam, 1995
- Calculation Basis: Annual salary/income
- Income up to ₹2,25,000 per year: No Professional Tax
- Maximum Annual Professional Tax: ₹2,500
- Maximum Monthly Deduction: Approximately ₹208
- Applicable Areas: Indore, Bhopal, Jabalpur, Gwalior, Ujjain, Sagar, Ratlam, and other Madhya Pradesh districts follow the same PT structure.
Employer Responsibilities in Indore
Employers operating in Indore must:
- Obtain Professional Tax registration/enrolment wherever applicable.
- Calculate Professional Tax based on employee salary.
- Deduct PT from monthly payroll.
- Deposit collected Professional Tax within the prescribed timeline.
- File applicable Professional Tax returns.
- Maintain salary and statutory compliance records.
Professional Tax Slab in Sagar, Satna, and Rewa (2026)
Sagar, Satna, and Rewa follow the Madhya Pradesh Professional Tax (PT) rules under the Madhya Pradesh Vritti Kar Adhiniyam, 1995. The Professional Tax slabs applicable in these cities are the same as those applicable throughout Madhya Pradesh. Employers deduct Professional Tax from eligible employees' salaries and deposit it with the Madhya Pradesh Tax Department.
Madhya Pradesh Professional Tax Slab (2026)
| Annual Salary / Income | Professional Tax Per Month | Annual Professional Tax |
|---|---|---|
| Up to ₹2,25,000 | Nil | Nil |
| ₹2,25,001 – ₹3,00,000 | ₹125 per month | ₹1,500 |
| ₹3,00,001 – ₹4,00,000 | ₹166 per month* | ₹2,000 |
| Above ₹4,00,000 | ₹208 per month* | ₹2,500 |
*Monthly deduction is adjusted in the final month to match the annual PT amount:
- ₹3,00,001 – ₹4,00,000: ₹166 for 11 months and ₹174 in the 12th month.
- Above ₹4,00,000: ₹208 for 11 months and ₹212 in the 12th month.
Professional Tax Calculation Examples (2026)
| Monthly Salary | Annual Income | Monthly PT | Annual PT |
|---|---|---|---|
| ₹15,000 | ₹1,80,000 | Nil | Nil |
| ₹20,000 | ₹2,40,000 | ₹125 | ₹1,500 |
| ₹30,000 | ₹3,60,000 | ₹166 | ₹2,000 |
| ₹50,000 | ₹6,00,000 | ₹208 | ₹2,500 |
Professional Tax in Sagar (2026)
- Applicable State: Madhya Pradesh
- City: Sagar
- Professional Tax Applicable: Yes
- Maximum Annual PT: ₹2,500
- Minimum Income Exemption: Annual income up to ₹2,25,000
- Deduction Frequency: Monthly payroll deduction
Professional Tax in Satna (2026)
- Applicable State: Madhya Pradesh
- City: Satna
- Professional Tax Applicable: Yes
- Maximum Annual PT: ₹2,500
- Salary-based slabs: Same as Madhya Pradesh state slabs
Professional Tax in Rewa (2026)
- Applicable State: Madhya Pradesh
- City: Rewa
- Professional Tax Applicable: Yes
- Maximum Annual PT: ₹2,500
- Payroll deduction: Based on annual salary slab
Employer Responsibilities in Sagar, Satna & Rewa
Employers operating in these cities must:
- Obtain Professional Tax registration/enrolment wherever applicable.
- Calculate PT based on employee salary.
- Deduct applicable Professional Tax every month.
- Deposit PT within the prescribed timeline.
- File Professional Tax returns.
- Maintain salary and statutory compliance records.
Professional Tax Slab in Gwalior (2026)
Gwalior follows the Madhya Pradesh Professional Tax (PT) rules under the Madhya Pradesh Vritti Kar Adhiniyam, 1995. The Professional Tax slabs applicable in Gwalior are the same as those applicable throughout Madhya Pradesh. Professional Tax is calculated based on annual salary/income, and employers deduct the applicable amount from employee salaries every month.
Gwalior Professional Tax Slab (2026)
| Annual Salary / Income | Professional Tax Per Month | Annual Professional Tax |
|---|---|---|
| Up to ₹2,25,000 | Nil | Nil |
| ₹2,25,001 – ₹3,00,000 | ₹125 per month | ₹1,500 |
| ₹3,00,001 – ₹4,00,000 | ₹166 per month* | ₹2,000 |
| Above ₹4,00,000 | ₹208 per month* | ₹2,500 |
*For higher slabs, the final month deduction is adjusted:
- ₹3,00,001 – ₹4,00,000: ₹166 for 11 months and ₹174 in the 12th month.
- Above ₹4,00,000: ₹208 for 11 months and ₹212 in the 12th month.
Gwalior Professional Tax Calculation Examples (2026)
| Monthly Salary | Annual Income | Monthly PT | Annual PT |
|---|---|---|---|
| ₹15,000 | ₹1,80,000 | Nil | Nil |
| ₹20,000 | ₹2,40,000 | ₹125 | ₹1,500 |
| ₹30,000 | ₹3,60,000 | ₹166 | ₹2,000 |
| ₹50,000 | ₹6,00,000 | ₹208 | ₹2,500 |
Key Highlights of Professional Tax in Gwalior
- Applicable City: Gwalior
- State: Madhya Pradesh
- Act: Madhya Pradesh Vritti Kar Adhiniyam, 1995
- Calculation Basis: Annual salary/income
- Income up to ₹2,25,000 per year: No Professional Tax
- Maximum Annual Professional Tax: ₹2,500
- Monthly Payroll Deduction: Based on applicable income slab
- Applicable Areas: Gwalior and other Madhya Pradesh cities follow the same PT structure.
Employer Responsibilities in Gwalior
Employers operating in Gwalior must:
- Obtain Professional Tax registration/enrolment wherever applicable.
- Calculate PT based on employee salary.
- Deduct Professional Tax from monthly payroll.
- Deposit collected PT within the prescribed timeline.
- File applicable Professional Tax returns.
- Maintain payroll and statutory compliance records.
Conclusion
Madhya Pradesh (MP) levies Professional Tax (PT) under the Madhya Pradesh Vritti Kar Adhiniyam, 1995. Professional Tax is applicable to salaried employees, professionals, traders, and other persons covered under the Act. Employers deduct Professional Tax from eligible employees' salaries and deposit it with the Madhya Pradesh Commercial Tax Department.
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