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KL PT Guide 2025-26 Verified

Professional Tax in Kerala 2025-26

Kerala professional tax half-yearly slabs, the August and February due dates, local-body collection, and employer compliance steps for HR and payroll teams.

Source: Kerala Municipality Act, 1994 (Profession Tax). Rates are collected by local bodies; verify with your local municipality before payroll lock.

Kerala PT at a Glance

Rs.1,250

Top rate

per half-year

Rs.2,500

Annual max

per year

Rs.11,999

Exempt up to

per half-year

Half-yearly

Cadence

Aug / Feb

Quick Read

Kerala levies professional tax through local bodies under the Municipality Act 1994, and it is paid half-yearly. PT is based on six-month income, from nil up to Rs.11,999 to Rs.1,250 per half-year (Rs.2,500 a year). The two payments are due by 31 August and 28 February.

Kerala PT is half-yearly, set by local bodies

Employees in Kochi, Thiruvananthapuram, Kozhikode, and across Kerala have PT computed on six-month income and paid twice a year. The top slab is Rs.1,250 per half-year, reaching the Rs.2,500 annual cap. Rates may vary slightly by municipality.

Slab Rates

Kerala Professional Tax Slabs 2025-26

PT is based on six-month (half-yearly) income. The common municipal scale is shown below.

Half-Yearly Income Professional Tax
Up to Rs.11,999 Nil
Rs.12,000 to Rs.17,999 Rs.120 / half-year
Rs.18,000 to Rs.29,999 Rs.180 / half-year
Rs.30,000 to Rs.44,999 Rs.300 / half-year
Rs.45,000 to Rs.59,999 Rs.450 / half-year
Rs.60,000 to Rs.74,999 Rs.600 / half-year
Rs.75,000 to Rs.99,999 Rs.750 / half-year
Rs.1,00,000 to Rs.1,24,999 Rs.1,000 / half-year
Rs.1,25,000 and above Rs.1,250 / half-year

Rates are set by each local body and may vary. Confirm the current slab with the municipality for your workplace before payroll lock.

Compliance Checklist

Kerala PT Compliance, Step by Step

1

Register with the local body

Register the establishment for professional tax with the municipality or panchayat where the workplace is located.

2

Compute half-yearly income

Add up each employee's gross income for the half-year and apply the relevant slab. Apply nil for half-yearly income up to Rs.11,999.

3

Deduct and collect PT

Deduct the half-yearly PT from employees as per the slab, up to Rs.1,250 for Rs.1,25,000 and above.

4

Pay by 31 August and 28 February

Remit the first-half PT by 31 August and the second-half PT by 28 February to the local body. Late payment attracts about 1% per month penalty.

5

Maintain records

Keep registers of employees, half-yearly income, PT deducted, and payment receipts for inspection by the local body.

factoHR India

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factoHR India tracks half-yearly income, applies the Kerala slab, and prepares the August and February PT payments for each work location.

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Half-yearly income tracking

Per local body

Aug & Feb due alerts

PT payment reports

Professional Tax in Other States

TN Tamil Nadu KA Karnataka PY Puducherry AP Andhra Pradesh TG Telangana MH Maharashtra

See all state professional tax rates

FAQ

Kerala Professional Tax FAQ

What is the professional tax rate in Kerala for 2025-26?
Kerala charges PT half-yearly on six-month income. It rises from nil up to Rs.11,999 to Rs.1,250 per half-year at Rs.1,25,000 and above. The top rate works out to Rs.2,500 per year.
How often is professional tax paid in Kerala?
Kerala professional tax is paid twice a year, not monthly. The first half is due by 31 August and the second half by 28 February, to the local municipality or panchayat.
Who collects professional tax in Kerala?
Professional tax in Kerala is levied and collected by local bodies, the municipalities and panchayats, under the Kerala Municipality Act 1994. Rates can vary slightly by local body.
What is the penalty for late professional tax in Kerala?
Late payment attracts a penalty of about 1% per month on the unpaid tax, which can escalate up to Rs.5,000 for persistent non-compliance.
Is Kerala professional tax deductible from income tax?
Yes. Professional tax paid is allowed as a deduction under Section 16(iii) of the Income Tax Act 1961. The amount is deducted from gross salary before computing taxable income and appears in Form 16 Part B.
How does factoHR India handle Kerala professional tax?
factoHR India tracks half-yearly income, applies the Kerala slab, and prepares the August and February PT payments for each work location.

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If you employ staff in Kerala, the same workforce is also covered by minimum wage rates in Kerala, working-hour and overtime rules in Kerala, Labour Welfare Fund rates in Kerala, and the public holiday calendar for Kerala. Keep every Kerala statutory obligation aligned across your payroll.