Professional Tax in Telangana — Rules & Rates 2026

Professional tax in Telangana is deducted monthly from salaries, with a maximum of ₹2,400 per year. ₹0 upto ₹15,000/mo; ₹150/mo ₹15,001–20,000; ₹200/mo above ₹20,000. It applies to Salaried. Follows similar slabs as Andhra; Hyderabad employers deduct monthly. Professional tax is fully deductible from gross salary under Section 16(iii) of the Income Tax Act.

Last updated: 2026-04-07

Professional Tax Rates & Rules — Telangana

Annual Maximum

₹2,400

Applicable To

Salaried

Slab Structure

₹0 upto ₹15,000/mo; ₹150/mo ₹15,001–20,000; ₹200/mo above ₹20,000

Notes

Follows similar slabs as Andhra; Hyderabad employers deduct monthly

Professional Tax Calculator

Gross Monthly

₹1,00,000

Monthly Tax (est.)

₹20,000

Net Take-Home

₹80,000

Annual Breakdown

Annual CTC₹12,00,000
Estimated Tax (20%)- ₹2,40,000
Annual Take-Home₹9,60,000

This is an estimate using a flat 20% tax rate. Actual tax depends on your deductions (80C, HRA, etc.) and tax regime choice.

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Frequently Asked Questions

What is the professional tax rate in Telangana in 2026?+
In Telangana, the maximum professional tax is ₹2,400 per year. Slabs: ₹0 upto ₹15,000/mo; ₹150/mo ₹15,001–20,000; ₹200/mo above ₹20,000. It applies to: Salaried. Follows similar slabs as Andhra; Hyderabad employers deduct monthly.
How to pay professional tax in Telangana?+
Employers in Telangana are responsible for deducting professional tax from employees' salaries and depositing it with the state government. Self-employed individuals must register and pay directly. Payment is made through the Telangana state tax department portal or designated banks. Failure to deduct/deposit attracts penalties.
Is professional tax deductible from income tax in Telangana?+
Yes. Professional tax paid in Telangana (up to ₹2,400/yr) is fully deductible from gross salary under Section 16(iii) of the Income Tax Act, 1961. This applies under both the old tax regime and the new tax regime. The deduction is available for tax year 2025-26 (Assessment Year 2026-27).

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Disclaimer: The rates, rules, and data shown for Telangana are approximate and for informational purposes only. Tax laws, stamp duty rates, and government regulations change frequently. Always verify current rates with the official Telangana government portal or a qualified professional before making financial or legal decisions. CalcCrack is not responsible for any decisions made based on this information. Last updated: April 2026.