Editorial Note: Forbes Advisor may earn a commission on sales made from partner links on this page, but that doesn't affect our editors' opinions or evaluations. Introduced in 1949, professional tax ...

Professional tax is charged by a state's commercial tax department on persons earning a wage in that particular state. Employers have the right to deduct tax before paying their employees' salaries.

Professional tax is levied on people engaged in any type of profession or business based on income. The state government collects this tax on employees and businessmen, including freelancers and ...