Professional tax in Punjab
It depends on your income. Punjab State Development Tax of ₹200 a month is due only if your income is above the basic exemption limit, which is ₹4,00,000 under the new regime.
At a glance
- Name of the tax
- Punjab State Development Tax
- How it is charged
- Every month, only if your income is above the basic exemption limit
- Most you pay in a year
- ₹2,400
- Who pays it over
- Your employer deducts it from your salary and pays it to the state.
- How sure we are
- Independent payroll references agree; the official text is still to be checked
Rates for 2026–27
Punjab State Development Tax is ₹200 a month (₹2,400 a year), deducted from salary when your income for the year is above the basic exemption limit. Senior citizens are exempt. It can instead be paid as a single ₹2,200 for the year.
What you would pay in a year
For a range of salaries, worked out with the same engine as the take-home calculator. The monthly salary is taken as one twelfth of the yearly figure.
| Gross salary a year | Professional tax for the year |
|---|---|
| ₹3,00,000 | ₹0 |
| ₹4,20,000 | ₹0 |
| ₹6,00,000 | ₹2,400 |
| ₹9,00,000 | ₹2,400 |
| ₹12,00,000 | ₹2,400 |
| ₹18,00,000 | ₹2,400 |
| ₹30,00,000 | ₹2,400 |
Income is taken as gross salary less the ₹75,000 standard deduction of the new regime.
Does it reduce your income tax?
Under the old regime, profession tax you pay is deducted from your taxable salary (formerly section 16(iii)). Under the new regime it is not. The take-home calculators apply this for you.
No state can charge more than ₹2,500 a person in a year: the Constitution (Article 276) sets that limit.
See your take-home pay in Punjab →
Sources
- Punjab State Development Tax, Department of Excise and Taxation, Government of Punjab. Checked 23 September 2026.
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An estimate for guidance only, not tax advice. Your payslip shows the amount actually deducted.