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Compliance

Professional Tax in Karnataka 2026: Slab Rates, Due Dates & Registration

Professional Tax in Karnataka is levied under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. Employers deduct it from monthly salaries and remit it to the Commercial Taxes Department, within the ₹2,500 annual cap.

Karnataka has a simple two-band structure: nothing up to ₹24,999 a month, and ₹200 a month above that (with ₹300 in one month to total ₹2,500 a year).

Professional Tax slabs (as of July 2026)

Monthly salaryProfessional Tax / month
Up to ₹24,999Nil
₹25,000 and above₹200/month (₹300 in one month; ₹2,500/year)
  • A high nil threshold (₹25,000) means only higher earners pay.
  • Employers must register for an EC and RC and file monthly returns.
  • PT is paid via the Karnataka Commercial Taxes e-payment portal.

Due dates

Employers deduct PT monthly and file monthly returns, with payment due by the 20th of the following month. Confirm on the Karnataka Commercial Taxes portal.

Penalties

Delayed payment attracts interest (around 1.25% per month) and a penalty. Verify current figures on the Karnataka Commercial Taxes portal.

Source: Karnataka Commercial Taxes Dept / ClearTax. Verify against the official portal before filing.

FAQ

Frequently asked questions

What is the professional tax in Karnataka?
Professional tax in Karnataka is a state levy on salaried employees and professionals, deducted monthly by the employer and remitted to the state. It is capped at ₹2,500 per person per year, as it is across India.
Who deducts and pays professional tax?
The employer deducts professional tax from each employee's monthly salary and deposits it with the state, after registering for a PT Enrolment Certificate (EC) and Registration Certificate (RC). Self-employed professionals pay it directly.
Is professional tax the same in every state?
No. Professional tax is a state subject, so the slabs, amounts and due dates differ by state. The one common rule is the ₹2,500 annual ceiling set under Article 276 of the Constitution. Kredily computes the right state PT for every employee automatically.

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