Quick answer: Professional tax in Tamil Nadu is half-yearly, not monthly, and is collected by the local body where you work. In Chennai it is nil on half-yearly income up to ₹21,000 and rises in five steps to ₹1,250 per half-year above ₹75,000, so most salaried employees pay ₹2,500 a year. It is due by 30 September (April–September) and 31 March (October–March).
Tamil Nadu works differently from most States with professional tax. There is no State-wide monthly deduction: the tax is levied by urban and rural local bodies (the Greater Chennai Corporation, other municipal corporations, municipalities and panchayats) on income for each half-year. In urban areas the law is now the Tamil Nadu Urban Local Bodies Act, 1998 (as amended in 2022), which makes employers liable to deduct and pay the tax for their employees. This guide covers the Chennai slab, how the half-yearly system works in payroll, the due dates, online payment and penalties. For how professional tax works in other States, see our professional tax guide.
Chennai professional tax slab (2026-27)
| Half-yearly income | Same as a monthly salary of | PT per half-year | Old rate (to Sept 2024) |
|---|---|---|---|
| Up to ₹21,000 | Up to ₹3,500 | Nil | Nil |
| ₹21,001 to ₹30,000 | ₹3,501 to ₹5,000 | ₹180 | ₹135 |
| ₹30,001 to ₹45,000 | ₹5,001 to ₹7,500 | ₹425 | ₹315 |
| ₹45,001 to ₹60,000 | ₹7,501 to ₹10,000 | ₹930 | ₹690 |
| ₹60,001 to ₹75,000 | ₹10,001 to ₹12,500 | ₹1,025 | ₹1,025 |
| Above ₹75,000 | Above ₹12,500 | ₹1,250 | ₹1,250 |
The Greater Chennai Corporation revised the three bands from ₹21,001 to ₹60,000 by about 35% with effect from the half-year starting 1 October 2024, and notified employers by a circular of 20 January 2025 (AscentHR on the GCC revision). The monthly equivalents in the second column are simply the half-yearly bands divided by six. The practical point: anyone earning more than about ₹12,500 a month pays the top rate of ₹1,250 per half-year, which is ₹2,500 a year, the constitutional maximum, for someone employed for the whole half-year. A joiner on ₹40,000 who works one month of the half-year has ₹40,000 of income and pays ₹425.
Other cities and towns
Other local bodies, such as the Coimbatore, Madurai and Tiruchirappalli corporations, municipalities and panchayats, follow the same half-yearly system but may charge different rates; apply the current notice of the local body where the employee works. Rates are revised about once every five years. Check amounts with our professional tax calculator.
How half-yearly PT works in payroll
- Two periods: April to September, and October to March.
- Income for the half-year: the band is based on gross income for the six months, not one month's salary.
- Deduction: employers usually deduct the whole half-yearly amount from one salary in each period, often August and January, though some spread it across the months.
- Joiners and leavers: for someone who works only part of a half-year, apply the band to the income actually earned in that half-year with you. Check whether a minimum-days rule applies to short stints.
- Returns: Greater Chennai Corporation asks employers to send a recovery return (Form 14) and employee-wise deduction details (Form 15) with the payment.
Example
A Chennai company has an employee on ₹40,000 a month. Half-yearly income is ₹2,40,000, above ₹75,000, so PT is ₹1,250 for April–September (deducted from the August salary and paid by 30 September) and ₹1,250 for October–March (deducted from January and paid by 31 March): ₹2,500 a year. A part-time assistant on ₹8,000 a month earns ₹48,000 in the half-year and pays ₹930.
PT due dates in Tamil Nadu
| Half-year | Period | Due date |
|---|---|---|
| First | April to September | 30 September |
| Second | October to March | 31 March |
Every year the Greater Chennai Corporation reminds employers to remit the first half-year's tax before 30 September. Add both dates to your payroll compliance calendar.
Registration and who pays
- Employers: register the establishment with the local body and obtain a Profession Tax New Assessment Number (PTNAN) in Chennai; deduct and pay the tax for every employee working within its limits.
- Companies, firms and the self-employed: pay their own half-yearly tax to the local body.
- Where: the tax goes to the local body in whose area the employee works; staff in different towns may need payments to different local bodies.
How to pay Chennai professional tax online
- Register: obtain the PTNAN through the Greater Chennai Corporation's online services.
- Calculate: work out each employee's half-yearly income and band, and total the tax.
- Pay: pay through the Corporation's website (chennaicorporation.gov.in, Online Services, Professional Tax), or by NEFT to the Corporation's designated profession tax account using the PTNAN as the beneficiary account number (without hyphens).
- Send details: submit Form 14 and Form 15 with the employee-wise deductions, and keep the receipt.
Penalties for late payment
Section 117-F of the Act provides for penalty and interest on late or unpaid tax. The Greater Chennai Corporation warns that missing the deadline "will invite strict penal action" (DT Next on the 2026 GCC notice). Commonly quoted rates are 2% a month plus a further 10% for non-payment, but confirm the current charge with your local body. Because the deadline comes only twice a year, a missed date means six months' tax for every employee is overdue at once. For how this compares with other payroll penalties, see our payroll penalties guide.
Tamil Nadu vs other States
Unlike Karnataka, Maharashtra and Telangana, where PT is a monthly State tax, Tamil Nadu's PT is half-yearly and paid to local bodies. The yearly maximum is the same ₹2,500, but the very low income bands mean almost every full-time employee pays it. Under the old income-tax regime, PT paid is deductible from salary; the new regime, the default under the Income-tax Act, 2025, does not allow it.
Get PT, PF, ESI and TDS right every month. The Indian Salary & Payroll Management e-Book explains every statutory deduction with worked examples, due dates and checklists.
Frequently asked questions
What is the PT slab for Chennai in 2026?
Greater Chennai Corporation charges professional tax on half-yearly income: nil up to 21,000 rupees, 180 rupees for 21,001 to 30,000 rupees, 425 rupees for 30,001 to 45,000 rupees, 930 rupees for 45,001 to 60,000 rupees, 1,025 rupees for 60,001 to 75,000 rupees and 1,250 rupees above 75,000 rupees, per half-year. These rates apply from the half-year starting 1 October 2024.
When do I pay professional tax in Tamil Nadu?
Professional tax in Tamil Nadu is paid twice a year: by 30 September for the half-year April to September, and by 31 March for the half-year October to March. Employers usually deduct it from one salary in each half-year, often August and January, and remit it to the local body by these dates.
What is the professional tax slab for Tamil Nadu in 2026?
Tamil Nadu has no single State slab. Each local body, such as a municipal corporation, municipality or panchayat, follows the same half-yearly system but may charge different rates, up to a maximum of 1,250 rupees a half-year or 2,500 rupees a year. Chennai's rates are the most widely used reference.
Can I pay my Chennai professional tax online?
Yes. Greater Chennai Corporation accepts professional tax online through its online payment portal using the Profession Tax New Assessment Number (PTNAN), and employers can also remit by NEFT to the Corporation's designated profession tax account, using the PTNAN as the beneficiary account number (without hyphens).
What is the penalty for late professional tax in Tamil Nadu?
Section 117-F of the Tamil Nadu Urban Local Bodies Act provides for penalty and interest on late or unpaid tax, and the Greater Chennai Corporation warns of strict penal action for missing the deadline. Commonly quoted rates are 2% a month plus a further 10% for non-payment, but confirm the current charge with your local body.
Position as of 15 November 2026. Based on the Tamil Nadu Urban Local Bodies Act, 1998 (as amended in 2022) and Rules, 2023, and the Greater Chennai Corporation circular of 20 January 2025. Other local bodies may set different rates. General information, not legal or tax advice.