Professional tax in Telangana: slabs, rules and deadlines for 2026
Telangana inherited its professional tax law from undivided Andhra Pradesh, which is why the two states still share an identical slab structure — a point of frequent confusion for employers with staff in both Hyderabad and Visakhapatnam.
| Monthly salary | Professional tax |
|---|---|
| Up to ₹15,000 / month | Nil |
| ₹15,001 – ₹20,000 / month | ₹150/month |
| Above ₹20,000 / month | ₹200/month |
₹150/month between ₹15,001–20,000 and ₹200/month above ₹20,000.
The law that applies in Telangana
Professional tax in Telangana is levied under the Telangana Tax on Professions, Trades, Callings and Employments Act, 1987, administered by the Telangana Commercial Taxes Department. Article 276 of the Constitution caps what any state may charge a person under this head at ₹2,500 a year, which is why no slab anywhere in India exceeds that figure.
Who must register in Telangana
Employers obtain a registration certificate; professionals and traders in business on their own account obtain an enrolment certificate. Both are handled through the Telangana Commercial Taxes portal.
Telangana enrols a wide range of self-employed categories explicitly — medical practitioners, legal practitioners, chartered accountants, engineers, contractors and commission agents among them — each with its own notified annual amount that may differ from the salary slabs below.
When it must be paid
Employers remit monthly, by the 10th of the following month — one of the earliest deadlines in the country, and noticeably tighter than the 20th or 21st used elsewhere. Enrolled persons pay annually.
The middle slab that most states do not have
Telangana uses a genuine three-step scale: nothing up to ₹15,000, ₹150 between ₹15,001 and ₹20,000, then ₹200 above. Karnataka and Gujarat jump straight from zero to the full amount.
The practical consequence is that a Telangana employee crossing ₹20,000 sees their deduction change from ₹150 to ₹200 — a step that payroll configured with a single flat rate will miss entirely.
Who is exempt in Telangana
- Anyone earning ₹15,000 a month or less.
- Senior citizens above 65.
- Persons with a permanent physical disability or blindness.
- Parents or guardians of a child with a mental disability.
If you pay late
Interest accrues on late remittance and penalties may follow for non-filing. Given the 10th-of-month deadline, Telangana leaves less slack than most states for a payroll run that closes late.
How it affects your income tax
Professional tax paid is fully deductible from salary income under Section 16(iii) of the Income-tax Act, in both the old and the new regime. Your employer normally accounts for it when computing TDS, so it reduces taxable salary rather than being claimed separately. If you are enrolled and pay directly, keep the challans — the deduction is still available to you.
On a payslip the line usually reads "PT", "Prof. Tax" or "Professional Tax", and sits with provident fund and income tax under deductions. Our free salary slip generator includes it automatically for Telangana.
Common questions about professional tax in Telangana
What is the professional tax on a ₹18,000 salary in Hyderabad?
₹150 a month. The ₹150 band runs from ₹15,001 to ₹20,000; the ₹200 rate begins above ₹20,000.
Are Telangana and Andhra Pradesh slabs the same?
Yes, currently identical, because both derive from the 1987 Act of undivided Andhra Pradesh. They are separate states with separate registrations, so you must register in each state where you have staff.
When is Telangana professional tax due?
By the 10th of the following month for employers — earlier than most states.
Does professional tax apply to contract workers?
If you pay them salary or wages and they cross the threshold, yes. Genuine independent professionals invoicing you enrol and pay on their own account instead.
Professional tax in other states
Slabs, thresholds and filing cycles differ substantially between states. If you employ people in more than one, you will generally need a registration in each.
The maths behind this calculator is open source and tested — try it in the interactive reference, where the edge cases most calculators get wrong are worked through with real numbers, or read the source on GitHub.