Professional Tax in Delhi (NCT)
Delhi (NCT) does not levy professional tax on salaried employees or professionals. Here's what applies to payroll compliance instead.
Updated: 16 August 2026Why Delhi (NCT) Has No Professional Tax
Delhi does not levy professional tax on salaried employees. Payroll compliance in Delhi centers on PF, ESI, TDS, and the Delhi Shops & Establishments Act instead, with no PT challan or filing applicable.
What Applies Instead
Provident Fund (PF)
12% employer + 12% employee contribution to EPFO for eligible employees, the same national structure used across every state.
Employee State Insurance (ESI)
4% combined contribution (3.25% employer, 0.75% employee) for employees earning up to ₹21,000/month, applied uniformly regardless of state.
TDS on Salaries
Deducted per the employee's applicable income tax slab, same computation as any other state and unaffected by the absence of PT.
Delhi Shops & Establishments Act, 1954
Governs working hours, weekly offs, and the public holiday calendar for Delhi establishments, separate from any tax obligation.
Delhi (NCT) does levy the Labour Welfare Fund separately from Professional Tax. See Delhi (NCT) LWF contribution rates.
Frequently Asked Questions: Delhi (NCT) Professional Tax
Is professional tax applicable in Delhi?
What replaces professional tax in Delhi payroll?
Does Delhi levy the Labour Welfare Fund even though it has no Professional Tax?
Could Delhi introduce Professional Tax in the future?
Professional Tax in Other States
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