Professional Tax
Professional Tax in Madhya Pradesh — Slabs & How to Calculate
Madhya Pradesh charges no professional tax below ₹18,750/month, then a three-tier scale rising to ₹208/month — with one month a year at ₹212 to reach the ₹2,500 annual cap.
Madhya Pradesh's threshold and band figures come out to slightly unusual numbers (₹18,750, ₹33,333) rather than round ones — a three-tier structure similar in spirit to Maharashtra's, stepping from ₹125 to ₹208 a month.
Like Maharashtra and Karnataka, the annual total is capped at ₹2,500 under Article 276(2) — since ₹208 × 12 comes to ₹2,496, one month a year is adjusted slightly upward to ₹212 to close the ₹4 gap and hit exactly ₹2,500.
Employers deduct this monthly and deposit it with Madhya Pradesh's Commercial Tax Department. Self-employed professionals above the threshold register and pay directly.
Worked example
A standard month works out to ₹208.00. A ₹40,000-a-month salary is in the top band — ₹208/month for most months, ₹212 in the adjustment month, ₹2,500 for the year.
Frequently asked questions
Why is one month's amount ₹4 higher than the rest?
₹208 × 12 comes to ₹2,496 — ₹4 short of the ₹2,500 constitutional cap. Madhya Pradesh adjusts one month a year to ₹212 to close that gap exactly.
Why are the thresholds odd numbers like ₹18,750 and ₹33,333?
These are the state's own notified figures — confirm the exact current thresholds against Madhya Pradesh's official notification if you're close to a band boundary.
Who administers this in Madhya Pradesh?
The Madhya Pradesh Commercial Tax Department. Employers deduct and deposit it monthly; self-employed professionals register and pay directly.