Professional Tax
Professional Tax in Odisha — Abolished from 1 April 2026
Odisha repealed its professional tax from 1 April 2026, so no deduction applies to FY 2026-27 salary. What the old slabs were and what still has to be paid.
Odisha used to levy professional tax under the Odisha State Tax on Professions, Trades, Callings and Employments Act, 2000. The state repealed that Act by an ordinance published in the Odisha Gazette on 21 April 2026, with effect from 1 April 2026. The stated reason was to end the overlap with income tax that salaried people and professionals already pay.
In practice, no professional tax should be deducted from salary for April 2026 onward, and the old registration is no longer needed for new periods. A payslip that still shows an Odisha professional tax deduction for FY 2026-27 is worth raising with payroll.
The repeal has a savings clause. Tax that fell due for earlier periods, up to 31 March 2026, and any assessment, notice or proceeding already under way, stay valid. If you have unpaid Odisha professional tax or returns for FY 2025-26 or before, they do not disappear.
Worked example
A standard month works out to ₹0.00. A ₹50,000-a-month salary in Odisha: ₹0 professional tax from 1 April 2026. Under the old slab the same salary would have paid ₹200 a month, ₹2,500 for the year.
To see how Odisha compares with other states, including what the same salary costs in each, read our state-wise professional tax slabs guide.
Frequently asked questions
Does Odisha still charge professional tax in 2026?
No. Odisha repealed its professional tax with effect from 1 April 2026, so nothing is deducted for FY 2026-27. The repeal came by ordinance, and press reports say the state gives up roughly ₹320 crore a year in revenue.
What was the Odisha professional tax slab before it was repealed?
Nil up to ₹13,304 a month, ₹125 a month from ₹13,305 to ₹25,000, and ₹200 a month above ₹25,000, with ₹300 in the last month so the year totals ₹2,500. That applied to salary up to 31 March 2026.
Do I still owe Odisha professional tax for earlier years?
Yes, if it was due. The ordinance keeps tax, assessments and proceedings for periods before 1 April 2026 enforceable, so pending dues and returns for FY 2025-26 and earlier still have to be cleared.
Should my employer have stopped deducting it from April 2026?
Yes. From April 2026 salaries there is no Odisha professional tax to deduct. If your payslip still shows it, ask payroll to confirm it has been removed, and check whether any amount deducted since April will be refunded.