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KA PT Guide 2025-26 Verified

Professional Tax in Karnataka 2025-26

Karnataka professional tax slab, the Rs.25,000 exemption threshold, the Rs.300 February deduction, due dates, and employer compliance steps for HR and payroll teams.

Source: Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. Verify the current slab on the e-PRERANA (Karnataka Commercial Taxes) portal before payroll lock.

Karnataka PT at a Glance

Rs.200

Top rate

per month

Rs.300

Feb month

one-time

Rs.2,500

Annual max

per year

Rs.24,999

Exempt up to

per month

Quick Read

Karnataka levies professional tax under the 1976 Act. Employees earning Rs.25,000 or more pay Rs.200 per month, with Rs.300 in February to total Rs.2,500 per year. Salaries up to Rs.24,999 are exempt. Employers deduct PT each pay run and remit through the e-PRERANA portal.

Maximum professional tax in Karnataka is Rs.2,500 a year

Most salaried employees in Bengaluru, Mysuru, Mangaluru, and across Karnataka pay Rs.200 per month and Rs.300 in February once gross salary reaches Rs.25,000. The annual figure can never exceed Rs.2,500 under Article 276 of the Constitution.

Slab Rates

Karnataka Professional Tax Slabs 2025-26

PT is based on gross monthly salary. Slabs apply equally to men and women in Karnataka.

Monthly Salary Professional Tax
Up to Rs.24,999 Nil
Rs.25,000 and above Rs.200 / month (Rs.300 in February)

Slab revised w.e.f. 1 April 2025. Confirm the current slab on the Karnataka Commercial Taxes portal before payroll lock.

Compliance Checklist

Karnataka PT Compliance, Step by Step

1

Register on e-PRERANA

Obtain the employer Enrolment Certificate and the Registration Certificate to deduct PT from employees, through the Karnataka Commercial Taxes e-PRERANA portal.

2

Deduct PT each pay run

Deduct Rs.200 per month from employees earning Rs.25,000 or more. Apply nil for salaries up to Rs.24,999. Add the Rs.300 deduction in February.

3

Remit PT monthly

Remit the PT deducted to the Karnataka government through e-PRERANA. Pay on time to avoid interest of 1.25% per month and penalty up to 50% of the amount due.

4

File PT returns

File the monthly and annual PT returns, reconciling PT deducted with remittances. Keep month-wise records of salary, PT deducted, and challans.

5

Maintain records

Keep registers of employees, gross salary, PT deducted, and payment challans for inspection by the Karnataka Commercial Taxes Department.

factoHR India

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Professional Tax in Other States

MH Maharashtra TG Telangana AP Andhra Pradesh TN Tamil Nadu KL Kerala GJ Gujarat

See all state professional tax rates

FAQ

Karnataka Professional Tax FAQ

What is the professional tax rate in Karnataka for 2025-26?
Karnataka charges Rs.200 per month for employees earning Rs.25,000 or more, with Rs.300 deducted in February to total Rs.2,500 per year. Employees earning up to Rs.24,999 per month pay nil professional tax.
When did the Karnataka professional tax slab change?
The Karnataka professional tax slab was revised with effect from 1 April 2025. The exemption threshold is Rs.25,000 per month, and the annual cap rose to Rs.2,500 with the Rs.300 February deduction.
Why is Rs.300 deducted in February in Karnataka?
To reach the Rs.2,500 annual cap, Karnataka deducts Rs.200 for eleven months and Rs.300 in February. This totals Rs.2,500 across the financial year for employees above the Rs.25,000 threshold.
How is professional tax paid in Karnataka?
Employers deduct PT monthly and remit it through the e-PRERANA portal of the Karnataka Commercial Taxes Department. Late payment attracts interest of 1.25% per month, with penalty capped at 50% of the amount due.
Is Karnataka 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 Karnataka professional tax?
factoHR India applies the Karnataka slab automatically, including the Rs.25,000 exemption threshold and the Rs.300 February deduction, deducts PT each pay run, and generates e-PRERANA remittance and return reports.

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