Professional Tax Slab in Gujarat: FY 2026-27

The Professional Tax Slab in Gujarat for FY 2026-27 explains the professional tax payable by eligible salaried employees, professionals, traders, businesses and other persons covered under the applicable state law. Professional tax in Gujarat is governed by the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976, together with applicable rules, schedules and government notifications.

Gujarat follows a monthly salary-based professional tax slab for employees. Under the published rate schedule, salary or wages up to ₹12,000 per month attract no professional tax, while salary or wages above ₹12,000 attract ₹200 per month. Separate annual rates apply to specified professionals, firms, establishments, dealers and other categories.

This guide covers the Gujarat professional tax slab for FY 2026-27, salary-wise rates, business turnover-based rates, registration, payment, exemptions and compliance requirements.

Important: The rates for salary and wages shown below have been effective since 1 April 2022. The official rate schedule for other categories is marked as updated on 27 June 2024. Check subsequent notifications and the applicable designated authority before relying on these rates for compliance.

Gujarat Professional Tax Slab for FY 2026-27

The following table shows the published monthly professional tax rates for eligible salaried employees and wage earners.

Note: The salary slab applies to the government and non-government salary and wage categories specified in the published schedule. Where salary or wages are payable for a period other than a month, the monthly amount is determined according to the applicable statutory explanation.

How to Calculate Professional Tax in Gujarat

For eligible salary and wage earners, the professional tax amount depends on the monthly salary or wages under the applicable slab. The following examples illustrate the published rates.

Example 1: Monthly salary of ₹10,000

Example 2: Monthly salary of ₹12,000

Example 3: Monthly salary of ₹15,000

Example 4: Monthly salary of ₹30,000

The annual amount in these examples assumes liability for all 12 months. The actual amount may differ if the employee's period of liability is shorter or another statutory provision applies.

Professional Tax Rates for Professionals and Businesses in Gujarat

The Gujarat professional tax schedule includes separate categories for specified professionals, companies, partnership firms, factory occupiers, establishment employers, dealers, GST suppliers, transport vehicle permit holders and other persons.

For entries where the State Government is the designated authority, the department's published schedule includes the following rates. These rates should not automatically be treated as the rates fixed by every municipal corporation, municipality or panchayat.

Important: The annual rates above reflect the published schedule where the State Government is the designated authority. Certain categories have separate statutory maximum rates, and a municipal corporation, municipality or panchayat may fix the rate applicable to its jurisdiction within the statutory framework. Always verify the relevant entry and local authority's current requirements.

Professional Tax Slab in Gujarat Based on Business Turnover

The published Gujarat schedule provides turnover-based annual rates for specified dealers under the Gujarat Value Added Tax Act, 2003. These rates should be applied only where the relevant statutory category and conditions are satisfied.

The turnover year for this category is determined under the applicable provisions of the Gujarat Value Added Tax Act, 2003. Do not apply these rates to every business merely because it operates in Gujarat.

Professional Tax for GST Suppliers in Gujarat

The published schedule also contains a separate entry for suppliers as defined under the Gujarat Goods and Services Tax Act, 2017. The applicable annual amount depends on turnover in the State and, for one turnover band, GST registration status.

Note: These rates are based on the published schedule for the supplier category, effective from 2 December 2021. Confirm the current notification and your classification before determining liability.

Who Is Liable to Pay Professional Tax in Gujarat?

Professional tax liability depends on the relevant category under the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976, and the rate fixed by the designated authority.

The following groups should check whether they are covered:

• Salaried employees and wage earners.
• Legal practitioners, medical practitioners and specified consultants.
• Specified agents, brokers, contractors and service providers.
• Partnership firms engaged in professions, trades or callings.
• Covered companies, banking companies and co-operative societies.
• Factory occupiers and employers of specified establishments.
• Eligible dealers and GST suppliers meeting the applicable turnover conditions.
• Specified transport vehicle permit holders and licensed money lenders.
• Other persons covered by a valid notification under the Act.

A person's liability must be checked against the applicable entry, rate notification and designated authority. The fact that a person carries on a business or profession in Gujarat does not, by itself, establish the exact amount payable.

Employer Responsibilities for Professional Tax in Gujarat

Employers covered by the Gujarat professional tax law must follow the applicable registration, deduction and payment requirements.

• Identify employees who are liable under the applicable salary slab.
• Calculate the tax using the relevant salary or wage amount.
• Deduct professional tax from employees' salaries where required.
• Obtain the appropriate employer registration.
• Pay the tax to the designated authority within the prescribed period.
• Maintain payroll records and payment receipts.
• File applicable returns and comply with current departmental instructions.

Under the Act, an employer may be responsible for paying tax deducted or required to be deducted from employees. Employers should check the current rules and official portal for registration, payment and return procedures.

Professional Tax Registration in Gujarat

Employers and eligible professionals, traders or other persons may need to obtain registration or enrolment, depending on their category and the applicable statutory requirements.

To check the registration process:

1. Visit the official Gujarat Commercial Tax Department website.
2. Open the Professional Tax section.
3. Choose the relevant employer or professional registration service.
4. Review the eligibility and documentation requirements.
5. Complete the prescribed application process.
6. Save the acknowledgement and registration details for future reference.

Official website: Gujarat Commercial Tax Department

How to Pay Professional Tax Online in Gujarat

Use the official departmental portal or the payment process prescribed by the designated authority for your area and taxpayer category.

1. Visit the official Gujarat Commercial Tax Department website.
2. Open the Professional Tax section or relevant PT dashboard.
3. Check your registration or enrolment details.
4. Confirm the applicable rate and amount payable.
5. Follow the portal's current payment instructions.
6. Complete payment using an available authorised method.
7. Save the receipt or challan as proof of payment.
8. Complete any required return-filing or record-keeping formalities.

Some taxpayers may need to pay through their designated municipal corporation, municipality or panchayat rather than through a single state-level process. Confirm the correct payment channel with the authority responsible for your category.

Professional Tax Exemptions in Gujarat

Exemptions depend on the applicable law and category. The published Act provides exemptions for specified entities, including certain companies subject to winding-up orders, certain co-operative societies under liquidation and a specified primary co-operative society whose members carry on its activity through their own labour.

The salary slab also specifies Nil professional tax for monthly salary or wages up to ₹12,000. This is a salary slab, not a universal exemption for every professional, business or other category.

Before claiming an exemption, check:

• Whether the person falls within a category listed in the applicable schedule.
• Whether the relevant salary, turnover or other conditions are satisfied.
• Whether a specific statutory exemption or government notification applies.
• Whether registration or enrolment is still required despite no tax being payable.
• Whether the designated authority has issued any applicable instructions.

Maximum Professional Tax Payable in Gujarat

Section 3(2) of the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976, provides that the tax payable in respect of one person must not exceed ₹2,500 in a year. The applicable amount depends on the person's category and the relevant rate notification.

For salary and wage earners whose monthly salary or wages exceed ₹12,000, the published rate is ₹200 per month, equivalent to ₹2,400 for 12 months of liability.

Gujarat Professional Tax Act and Rules

The principal legislation is the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976. The applicable rules are known as the Gujarat Tax on Professions, Trades, Callings and Employment Rules, 1976.

The designated authority may be a municipal corporation, municipality, panchayat or the State Government, as applicable under the Act and relevant notifications. Rates for categories other than salary and wage earners may therefore differ according to the authority and jurisdiction.

Official sources:

• Official Gujarat Professional Tax Rate Schedule (PDF)
• Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976
• Gujarat Professional Tax Rules
• Gujarat Commercial Tax Department

Frequently Asked Questions About Gujarat Professional Tax

1. What is the professional tax slab in Gujarat for FY 2026-27?

The published salary slab is Nil for monthly salary or wages up to ₹12,000 and ₹200 per month for salary or wages above ₹12,000. The salary rate has been effective since 1 April 2022.

2. Is professional tax applicable to a salary of ₹12,000 in Gujarat?

No professional tax is payable under the published salary slab when monthly salary or wages are exactly ₹12,000.

3. How much professional tax is payable on a salary of ₹25,000?

Under the published salary slab, the tax is ₹200 per month. If the employee is liable for all 12 months, the annual amount is ₹2,400.

4. Do professionals and businesses pay professional tax in Gujarat?

Specified professionals, firms, companies, factory occupiers, establishment employers, dealers, GST suppliers and other listed categories may be liable. The applicable rate depends on the statutory entry and designated authority.

5. What is the annual professional tax rate for specified dealers in Gujarat?

The published schedule lists Nil tax for eligible dealers with turnover up to ₹5,00,000, ₹1,250 for turnover above ₹5,00,000 up to ₹10,00,000, and ₹2,400 for turnover above ₹10,00,000. These rates apply only to the relevant statutory category.

6. What is the professional tax rate for GST suppliers in Gujarat?

The published schedule lists rates based on turnover in Gujarat and GST registration status. The amount can be Nil, ₹1,250 or ₹2,400 per year, depending on the applicable turnover band and registration condition.

7. What is the maximum professional tax in Gujarat?

The Act provides an annual maximum of ₹2,500 per person. The applicable amount depends on the relevant category and rate notification.

8. How can I register for professional tax in Gujarat?

Visit the official Gujarat Commercial Tax Department website and open the Professional Tax section to check the current employer or professional registration process.

9. Where can I check the official Gujarat professional tax rates?

Refer to the official Gujarat Professional Tax Rate Schedule and check any subsequent notifications issued by the relevant designated authority.

Official Sources for Gujarat Professional Tax

For current rates, registration, payment procedures and compliance requirements, consult these official resources:

Gujarat Commercial Tax Department:
Visit the official website

Professional Tax Rate Schedule:
View the official rate schedule

Professional Tax Rules:
View the rules published by the department

Contact Email: info@taxfra.com

Disclaimer: This article provides general information about professional tax in Gujarat for FY 2026-27. Rates and categories are based on the published Gujarat Commercial Tax Department schedule, which is marked as updated on 27 June 2024. This page does not establish that no later amendment has been issued. Rates for certain non-salary categories may be fixed by the relevant designated authority within the statutory framework. Verify the latest applicable notification, eligibility criteria, registration requirements, payment procedures and deadlines with the responsible authority before making compliance decisions.