Glossary
Professional Tax (PT)
A state-levied tax on salaried income and professions, deducted by the employer and remitted to the state government, separate from the central Labour Codes and unaffected by them.
Professional Tax is a state subject with its own slabs, thresholds and filing calendar in each state that levies it. It sits outside the four central Labour Codes entirely and hasn’t been touched by the 2025-26 reforms.
Employers must continue tracking PT slabs per state of employment, since rates and exemption limits vary widely and are not harmonised nationally.
Why it matters now: it is easy to assume every payroll deduction line changed with the Codes. PT is a reminder that some statutory obligations run on an entirely separate, state-level track.