Professional Tax Slab in Karnataka: FY 2026-27

The Professional Tax Slab in Karnataka for FY 2026-27 specifies the professional tax payable by salaried employees and other eligible persons engaged in professions, trades, callings and employments in the state. Under the applicable Karnataka Professional Tax law, employees earning a monthly salary or wages of ₹25,000 or more are generally liable to pay professional tax at ₹200 per month, except in February, when the deduction is ₹300. The annual professional tax for an eligible salaried employee is ₹2,500.

This page explains the Karnataka professional tax rates, salary eligibility, monthly deductions, annual professional tax, employer responsibilities, exemptions, registration and payment procedures for the financial year 2026-27.

Karnataka Professional Tax Slab for FY 2026-27

The following table summarises the professional tax applicable to salary and wage earners in Karnataka.

Note: Employees earning less than ₹25,000 per month are generally outside the salary-based professional tax levy. For eligible employees, the February deduction is ₹300 rather than ₹200. These rates are based on the Karnataka Tax on Professions, Trades, Callings and Employments (Amendment) Act, 2025.

How to Calculate Professional Tax in Karnataka

Professional tax in Karnataka is calculated according to the employee's monthly salary or wages and the applicable statutory rate. For an employee whose monthly salary or wages is ₹25,000 or more, the standard deduction is ₹200 per month, with an additional ₹100 collected in February.

Example: If an employee earns ₹30,000 per month throughout the financial year and is liable to pay professional tax, the annual deduction is calculated as follows:

Who Is Liable to Pay Professional Tax in Karnataka?

Professional tax is governed by the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, and the rules and notifications issued under it. Liability depends on the relevant category specified in the Act's Schedule.

The categories covered by the applicable Schedule include:

• Salary and wage earners meeting the prescribed salary threshold.
• Persons registered or liable to be registered under the Karnataka Goods and Services Tax Act, 2017.
• Eligible self-employed professionals and persons engaged in specified professions, trades, callings or employments.
• Companies, firms and other classes of persons covered by the applicable Schedule.
• Employers and other persons specifically covered by the relevant statutory provisions.

The annual professional tax for persons covered by the applicable ₹2,500 annual-rate categories is generally ₹2,500, subject to the relevant statutory conditions and exemptions. The exact liability should be checked against the applicable Schedule.

Professional Tax Rules for Employers in Karnataka

Employers are responsible for deducting and paying professional tax for employees who are liable under Karnataka law. The requirement applies to eligible employees working in Karnataka, even if the employer's head office or payroll processing department is located in another state.

• Check each employee's monthly salary or wages against the applicable threshold.
• Deduct ₹200 per eligible employee in the applicable months and ₹300 in February.
• Deduct professional tax from salary and deposit it with the Karnataka authorities within the applicable due date.
• Complete the required registration, return filing and electronic payment formalities.
• Maintain salary records, deduction details, payment challans and returns.

The Karnataka Professional Tax Department's FAQ states that an employer with even one employee may have a deduction and payment obligation where professional tax applies. Employers should verify the applicable filing frequency and due date on the official portal.

Professional Tax Exemptions in Karnataka

Exemptions are subject to the Karnataka Professional Tax Act, the applicable Schedule and government notifications. Certain categories of persons may qualify for an exemption or a specific compliance concession, provided they satisfy the prescribed conditions and submit the required documents.

Relevant categories identified in Karnataka government notifications include:

• Salaried individuals earning less than ₹25,000 per month for the salary-based levy.
• Eligible senior citizens aged 60 years or above under the applicable exemption notification.
• Specified persons with qualifying permanent disabilities, subject to the prescribed medical certificate.
• Eligible individuals with a single child who have undergone sterilisation, subject to the prescribed certificate.
• Certain ex-servicemen and other specifically notified categories.
• Other eligible classes covered by applicable government exemption notifications.

Important: Eligibility conditions and documentation requirements vary by category. The notification dated 1 April 2026 specifies documents for certain enrolled persons claiming exemption from furnishing returns. An exemption from filing a return should not automatically be interpreted as an exemption from paying professional tax.

Professional Tax Registration in Karnataka

Eligible employers, professionals and other taxable persons can use the Karnataka Commercial Taxes Department's official professional tax portal for registration and compliance.

The general online process includes:

1. Visit the official Karnataka Professional Tax portal.
2. Select the appropriate registration or enrolment option.
3. Provide the required PAN, TAN or other applicable details.
4. Complete the required verification and registration steps.
5. Log in to access the applicable professional tax return and payment facilities.

Registration requirements differ between employers, self-employed professionals and other enrolled taxpayers. Select the appropriate category and follow the latest portal instructions.

How to Pay Professional Tax Online in Karnataka

Professional tax payments and applicable returns can be managed through the Karnataka Commercial Taxes Department's online portal.

1. Open the official Karnataka Professional Tax portal.
2. Log in using the applicable registered credentials.
3. Select the relevant return period and professional tax category.
4. Enter the required information and verify the amount payable.
5. Make the payment using an available payment method.
6. Submit the return, where required, and retain the payment receipt and return acknowledgement.

Always check the current payment schedule, return requirements and any extensions announced by the department before making a payment.

Frequently Asked Questions About Karnataka Professional Tax

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

Employees earning ₹25,000 or more per month are generally liable to pay ₹200 per month, except in February, when ₹300 is payable. The annual total is ₹2,500. Employees earning below ₹25,000 per month are generally not liable under the salary-based levy.

2. What is the minimum salary for professional tax in Karnataka?

The salary threshold for the salary-based professional tax levy is ₹25,000 per month. Employees earning less than this amount are generally exempt from the salary-based levy, subject to applicable law.

3. Is professional tax ₹200 or ₹300 in Karnataka?

The regular deduction is ₹200 per month for eligible employees. The deduction for February is ₹300. This special February amount brings the annual total to ₹2,500.

4. What is the annual professional tax in Karnataka?

The annual professional tax for an eligible salaried employee earning ₹25,000 or more per month throughout the financial year is ₹2,500.

5. Who deducts professional tax from salary in Karnataka?

The employer generally deducts professional tax from the salary of eligible employees and deposits it with the state government according to the applicable rules.

6. Is professional tax applicable to self-employed professionals in Karnataka?

Yes, certain self-employed professionals and persons engaged in specified professions, trades, callings or employments may be liable to pay professional tax. Liability depends on the applicable Schedule, eligibility conditions and exemptions.

7. Is professional tax applicable to companies and GST-registered persons?

Certain companies, GST-registered or liable-to-be-registered persons and other specified categories are covered by the applicable Schedule. Their registration and payment obligations should be verified separately from the salary-based slab.

8. Where can I check the official Karnataka professional tax rates?

You can check the latest Acts, rules, notifications, registration facilities and professional tax information on the official Karnataka Commercial Taxes Department website and its professional tax portal.

Official Source for Karnataka Professional Tax

The rates and compliance information on this page are based on the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, its applicable amendments and relevant government notifications.

Official Professional Tax Portal: Karnataka Professional Tax Portal

Official Commercial Taxes Department: Karnataka Professional Tax Acts and Notifications

Official Professional Tax FAQ: Karnataka Professional Tax Frequently Asked Questions

Contact Email: info@taxfra.com

Disclaimer: The professional tax rates, exemptions and compliance information provided on this page are for general informational purposes. They are based on the applicable statutory provisions and government notifications available at the time of preparation. Rates, filing requirements, exemptions and due dates may change. Readers should verify their individual liability and the latest requirements with the Karnataka Commercial Taxes Department or a qualified tax professional before making compliance decisions.