Professional Tax in Karnataka
Current as of May 2026. Professional tax rates are set by Karnataka and can change by notification; confirm against the state portal before relying on them for payroll.
Karnataka levies professional tax on salaried employees and professionals working in the state, under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. Effective FY 2023-24 the state raised its exemption threshold sharply: anyone earning up to ₹25,000 a month now pays nothing, and above that the tax is a flat ₹200 a month. That single change took most junior and mid-level employees in Bengaluru out of the PT net entirely. Employers still have to register, deduct PT for employees over the threshold, and file. Registration runs through the e-PRERANA portal with Form 1 for the employer and Form 2 for employees. Monthly PT is paid by the 20th of the following month, and an annual return (Form 5A) is due by 30 April. A Bengaluru office of a company headquartered elsewhere must register in Karnataka for its Karnataka-based staff: PT follows the work location, not the registered office. At ₹200 a month for twelve months the annual liability tops out at ₹2,400, comfortably under the ₹2,500 constitutional ceiling.
Karnataka professional tax slabs
| Monthly salary | PT per month |
|---|---|
| Up to ₹25,000 | ₹0 |
| Above ₹25,000 | ₹200 |
Annual liability tops out at ₹2,400 (12 × ₹200), under the ₹2,500 cap.
Registration
- Register the employer on e-PRERANA using Form 1, and enrol employees with Form 2.
- Keep the Enrolment Certificate (EC) and Registration Certificate (RC) numbers on file.
Portal: e-PRERANA (Karnataka Commercial Taxes).
Filing and due dates
- Pay PT deducted by the 20th of the following month.
- File the annual return (Form 5A) by 30 April.
- Late payment attracts interest at 1.25% per month plus a penalty of up to 50% of the tax due.
FAQs
What is the professional tax slab in Karnataka for 2026?
Nil up to ₹25,000 gross salary a month, and a flat ₹200 a month above ₹25,000. The ₹25,000 threshold has applied since FY 2023-24.
When is professional tax due in Karnataka?
PT deducted in a month is paid by the 20th of the following month. The annual return in Form 5A is due by 30 April.
Where do I register for professional tax in Karnataka?
On the e-PRERANA portal of the Karnataka Commercial Taxes Department. The employer files Form 1 and enrols employees with Form 2.
Does a Bengaluru employee of an out-of-state company pay Karnataka PT?
Yes. PT follows the work location, so an employee working in Karnataka triggers Karnataka PT even if the company is registered in another state.
What is the maximum professional tax in Karnataka per year?
At ₹200 a month the annual total is ₹2,400, which stays under the ₹2,500 ceiling set by Article 276(2) of the Constitution.