Professional tax is a type of tax that needs to be paid by each and every individual earning an income. The calculation of this tax and the professional tax levied differs from one state to another. However, the limit has been set to Rs. 2500 per year.

According to online portal cleartax, “as per Article 246 of Constitution of India, only Parliament has the exclusive power to make laws with respect to Union List which includes taxes on income. State has the power to make laws only with respect to Concurrent list and State list. However, professional tax is a kind of tax on income levied by state government. State government is also empowered to make laws with respect to professional tax though being tax on income under Article 276 of the Constitution of India which deals with tax on professions, trades, callings and employments.”

However, not all states in India levy professional tax.

Following are some of the Indian states and union territories where no professional tax is applicable:

Arunachal Pradesh

Himachal Pradesh



Uttar Pradesh


Andaman and Nicobar Islands

Daman & Diu

Dadra and Nagar Haveli


Jammu & Kashmir