Karnataka professional tax slab rates
Karnataka levies professional tax under the Karnataka Tax on Professions, Trades,
Callings and Employments Act, 1976, with one of the simplest slab structures in the
country: a single exemption threshold, then a flat monthly rate.
| Monthly salary (₹) | Professional tax (₹) |
|---|---|
| Below 25,000 | Nil |
| 25,000 and above | ₹200/month (₹300 in February) |
Annual maximum: ₹2,500. Rates are for reference only; verify the latest state notification
before publishing.
Who needs to pay professional tax in Karnataka?
Professional tax applies to anyone earning ₹25,000/month or more in Karnataka through employment, trade, calling or profession. Employers deduct the tax and remit it to the Commercial Taxes Department; several categories are exempt regardless of income.
Employer responsibility
Employers register, deduct, deposit and file on behalf of their workforce
- Register for a PTRC within 30 days of becoming liable
- Deduct professional tax from employees earning ₹25,000/month or more
- Deposit the deducted amount by the due date
- File monthly or quarterly returns, and the annual return (Form 5) by 30 May
- Maintain records for audit
Due date and filing
Monthly filers pay by the 20th of the following month; quarterly filers pay by the 30th of the month after the quarter ends. The annual return is filed via Form 5, due 30 May each year.
Registration process in Karnataka
Employers must register for a Professional Tax Registration Certificate (PTRC) within 30 days of becoming liable, via the Karnataka Commercial Taxes Department eportal. The registration number is used for all subsequent deductions, payments and filings.
The 2023 vs. 2025 amendments
These two changes are often conflated; they affected different things.
| Amendment | Effective | What changed |
|---|---|---|
| 2023 amendment | 1 April 2023 | Raised exemption threshold from ₹15,000 to ₹25,000/month — changed who pays |
| 2025 amendment | 1 April 2025 | Raised annual total from ₹2,400 to ₹2,500, via ₹200/month × 11 + ₹300 in February — changed how much |
Common payroll mistakes to avoid
- Still exempting employees below ₹15,000/month instead of the current ₹25,000/month threshold set in 2023
- Deducting a flat ₹200 every month and skipping the ₹300 February top-up introduced in 2025
- Reporting ₹2,400 as Karnataka's annual maximum instead of the current ₹2,500
- Missing the 20th-of-the-month due date for monthly filers
- Missing the 30 May deadline for the annual Form 5 return
Let HONO apply Karnataka professional tax in every payroll run
HONO applies state specific payroll rules, including the February top-up, based on employee location and payroll configuration.