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TN PT Guide 2025-26 Verified

Professional Tax in Tamil Nadu 2025-26

Tamil Nadu professional tax half-yearly slabs, the September and March due dates, local-body collection, and employer compliance steps for HR and payroll teams.

Source: Tamil Nadu Panchayats, Municipalities and Municipal Corporations (Profession Tax) Rules, 1998. Rates are set by each local body; verify with your local body before payroll lock.

Tamil Nadu PT at a Glance

Rs.1,095

Top rate

per half-year

Rs.2,190

Annual max

per year

Rs.21,000

Exempt up to

per half-year

Half-yearly

Cadence

Sep / Mar

Quick Read

Tamil Nadu levies professional tax through local bodies under the 1998 rules, and it is paid half-yearly, not monthly. PT is based on six-month income, from nil up to Rs.21,000 to a top of Rs.1,095 per half-year. The two payments are due by 30 September and 31 March.

Tamil Nadu PT is half-yearly, set by local bodies

Employees in Chennai, Coimbatore, Madurai, and across Tamil Nadu have PT computed on six-month income and paid twice a year. The top slab is Rs.1,095 per half-year, about Rs.2,190 a year, within the Rs.2,500 constitutional cap. Rates may vary slightly by local body.

Slab Rates

Tamil Nadu Professional Tax Slabs 2025-26

PT is based on six-month (half-yearly) income. The common municipal scale is shown below.

Half-Yearly Income Professional Tax
Up to Rs.21,000 Nil
Rs.21,001 to Rs.30,000 Rs.100 / half-year
Rs.30,001 to Rs.45,000 Rs.235 / half-year
Rs.45,001 to Rs.60,000 Rs.510 / half-year
Rs.60,001 to Rs.75,000 Rs.760 / half-year
Above Rs.75,000 Rs.1,095 / half-year

Rates are set by each local body and may vary. Confirm the current slab with the municipal corporation or panchayat for your workplace before payroll lock.

Compliance Checklist

Tamil Nadu PT Compliance, Step by Step

1

Register with the local body

Register the establishment for professional tax with the municipal corporation, municipality, or panchayat where the workplace is located.

2

Compute half-yearly income

Add up each employee's gross income for the half-year (April to September, then October to March) and apply the relevant slab.

3

Deduct and collect PT

Deduct the half-yearly PT from employees as per the slab. Apply nil for half-yearly income up to Rs.21,000.

4

Pay by 30 September and 31 March

Remit the first-half PT by 30 September and the second-half PT by 31 March to the local body. Late payment attracts about 2% per month penalty.

5

Maintain records

Keep registers of employees, half-yearly income, PT deducted, and payment receipts for inspection by the local body.

factoHR India

Auto-apply Tamil Nadu professional tax

factoHR India tracks half-yearly income, applies the Tamil Nadu slab, and prepares the September and March PT payments for each work location.

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Half-yearly income tracking

Per local body

Sep & Mar due alerts

PT payment reports

Professional Tax in Other States

KL Kerala KA Karnataka AP Andhra Pradesh TG Telangana PY Puducherry MH Maharashtra

See all state professional tax rates

FAQ

Tamil Nadu Professional Tax FAQ

What is the professional tax rate in Tamil Nadu for 2025-26?
Tamil Nadu charges PT half-yearly on six-month income. The common scale is nil up to Rs.21,000, then Rs.100, Rs.235, Rs.510, Rs.760, and Rs.1,095 per half-year as income rises. The top rate works out to about Rs.2,190 per year.
How often is professional tax paid in Tamil Nadu?
Tamil Nadu professional tax is paid twice a year, not monthly. The first half (April to September) is due by 30 September, and the second half (October to March) is due by 31 March.
Who sets professional tax rates in Tamil Nadu?
Professional tax in Tamil Nadu is levied by local bodies such as village panchayats, town panchayats, municipalities, and city corporations under the 1998 rules. Rates can vary slightly by local body, so confirm with the one for your workplace.
What is the penalty for late professional tax in Tamil Nadu?
Late payment attracts a penalty of around 2% per month on the pending amount, with an additional penalty if the tax remains unpaid. Confirm the exact rate with your local body.
Is Tamil Nadu professional tax deductible from income tax?
Yes. Professional tax paid is allowed as a deduction under Section 16(iii) of the Income Tax Act 1961. The amount is deducted from gross salary before computing taxable income and appears in Form 16 Part B.
How does factoHR India handle Tamil Nadu professional tax?
factoHR India tracks half-yearly income, applies the Tamil Nadu slab, and prepares the half-yearly PT payments due in September and March for each work location.

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If you employ staff in Tamil Nadu, the same workforce is also covered by minimum wage rates in Tamil Nadu, working-hour and overtime rules in Tamil Nadu, Labour Welfare Fund rates in Tamil Nadu, and the public holiday calendar for Tamil Nadu. Keep every Tamil Nadu statutory obligation aligned across your payroll.