In Tamil Nadu professional tax is a local body tax charged per half-year (April to September and October to March). In Chennai, salary of up to ₹21,000 a half-year is nil and the tax rises to ₹1,250 a half-year above ₹75,000, so most salaried staff pay ₹2,500 a year. The employer deducts it from the August and January salary and remits it under its PTNAN with Form 14.
Professional tax slabs in Tamil Nadu
Professional tax in Tamil Nadu is levied under the Tamil Nadu Urban Local Bodies Act, 1998 (section 117-C) and the Tamil Nadu Urban Local Bodies Rules, 2023. It is charged per half-year (April to September and October to March) by the local body. The rates below are the Greater Chennai Corporation rates from the second half-year of 2024-25 (1 October 2024), restated in its press release of 4 August 2026, as published on the official source listed at the end of this page (checked 21 October 2026). Article 276 of the Constitution caps professional tax at ₹2,500 a year per person.
| Half-yearly gross income | PT per half-year (from 1 October 2024) | Earlier rate (from 1 April 2018) |
|---|---|---|
| Up to ₹21,000 | Nil | Nil |
| ₹21,001 to ₹30,000 | ₹180 | ₹135 |
| ₹30,001 to ₹45,000 | ₹425 | ₹315 |
| ₹45,001 to ₹60,000 | ₹930 | ₹690 |
| ₹60,001 to ₹75,000 | ₹1,025 | ₹1,025 |
| ₹75,001 and above | ₹1,250 | ₹1,250 |
These are Greater Chennai Corporation rates. In Tamil Nadu PT is levied by each urban or rural local body; others work within the same framework but set their own rates, so check with the corporation, municipality or panchayat where the office is.
Who deducts it and registration
Rule 277(2) of the Tamil Nadu Urban Local Bodies Rules, 2023 makes the employer (or drawing and disbursing officer) deduct PT from the pay bills for August and January. The employer is identified by its Profession Tax New Account Number (PTNAN), files Form 14 with each remittance and Form 15 listing the employees (Rule 278). Greater Chennai Corporation accepts NEFT to the account named "Commissioner Greater Chennai Corporation Professional Tax", with the PTNAN (without hyphens) as the account number.
The employee does not pay separately when the employer deducts: the deduction on the payslip is the employee's tax, and the employer is liable if it fails to deduct or pay.
Due dates and payment
- First half-year: deduct from August salary and remit by 30 September with Form 14 (Rule 277(3); GCC press release of 4 August 2026).
- Second half-year: deduct from January salary; the press release does not state the remittance date, so confirm it with your local body.
Keep the challan or payment receipt for each period and reconcile it with the payroll register: a mismatch between what payslips show and what was paid is the most common finding when the department checks an employer.
Penalties and interest
From the Act and Rules as published on the official site:
- The press release says failure to deduct and remit will attract action under the 1998 Act and 2023 Rules, without stating an amount.
Worked example: Tamil Nadu
A Chennai firm pays Arun ₹12,000, Meena ₹9,000 and Joseph ₹4,500 a month. Each half-year's income is six months' salary.
| Employee | Half-yearly income | PT in August | PT in January | Year |
|---|---|---|---|---|
| Arun | ₹72,000 | ₹1,025 | ₹1,025 | ₹2,050 |
| Meena | ₹54,000 | ₹930 | ₹930 | ₹1,860 |
| Joseph | ₹27,000 | ₹180 | ₹180 | ₹360 |
Arun's August salary shows a ₹1,025 deduction and the other months show none. Above ₹12,500 a month (₹75,001 a half-year) the deduction would be ₹1,250.
Getting PT right on every payslip
- Use the salary for the half-year to pick the slab, and recheck after every raise or arrears payment.
- Register in each state where you employ people: PT follows the place of work, not the head office.
- Show PT as a separate deduction on the payslip, next to PF, ESI and TDS.
- Under the new income-tax regime PT is not deductible from salary income; under the old regime it is.
Check take-home pay with the salary calculator, the employer and employee shares with the PF calculator and ESI calculator, and show every deduction clearly using the salary slip format. FundRaksha HR calculates professional tax with PF, ESI and TDS on each payroll run and produces the PT, PF ECR and ESI files, so the deduction on the payslip and the amount paid agree. Compare all states on the professional tax slabs by state page.
Sources
Last reviewed: 2026-10-21. Information for Indian businesses; not legal advice.