Karnataka Professional Tax Calculator – FY 2026-27
Karnataka professional tax is ₹200 per month for a monthly gross salary of ₹25,000 or more, and ₹300 in February. No professional tax applies below ₹25,000 per month. The annual maximum is ₹2,500. This calculator computes your monthly and annual Karnataka PT deduction for FY 2026-27.
Updated for FY 2026-27, reflecting the Karnataka threshold increase from ₹15,000 to ₹25,000 effective 1 April 2025. Last reviewed: September 2026.
What is Karnataka professional tax?
Karnataka professional tax (PT) is a state-level tax deducted from your monthly salary under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. If you earn ₹25,000 or more per month, your employer deducts ₹200 monthly — ₹300 in February — giving a maximum of ₹2,500 a year. This Karnataka professional tax calculator converts your monthly salary into the exact monthly and annual PT deduction.
How to use this Karnataka PT calculator
- Select Karnataka in the State field (it is one of the available schedules).
- Why this matters: PT is a state levy, so each state has its own slab table. Selecting Karnataka applies the ₹25,000 threshold and the ₹200/₹300 rates.
- Enter your monthly gross salary in rupees.
- Why this matters: Karnataka PT depends only on monthly gross salary — allowances and other income do not change the bracket.
- Leave gender as-is. Gender affects only Maharashtra's schedule, not Karnataka's.
- Why this matters: Entering a gender value will not alter a Karnataka result, and the calculator makes that explicit.
- Press "Calculate professional tax".
- Why this matters: The tool builds a twelve-month schedule so you can see the February ₹300 month and the annual ₹2,500 total separately.
- Compare with your payslip.
- Why this matters: A payroll deduction that does not match usually means the employer is using an outdated ₹15,000 threshold.
- Enter a manual override if your state differs. If you are on a state or local-body schedule that is not preset, type the verified monthly amount.
- Why this matters: The tool never assumes a nil liability where no schedule is embedded — it asks for the verified figure instead.
How is Karnataka professional tax calculated?
Karnataka professional tax is calculated on monthly gross salary using the state's slab table, and it is capped annually. The rates for FY 2026-27 are:
- Monthly salary up to ₹24,999: no tax (exempt).
- Monthly salary ₹25,000 and above: ₹200 per month.
- February only: ₹300 instead of ₹200.
- Annual maximum: ₹2,500 (₹200 × 11 months + ₹300 in February).
There is no intermediate ₹150 band in Karnataka — the earlier intermediate slab was removed along with the threshold change. Karnataka PT is levied under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, and the threshold was raised to ₹25,000 by the 2025 amendment effective 1 April 2025.
Karnataka PT slab table for FY 2026-27
| Monthly gross salary | PT per month | PT per year |
|---|---|---|
| Up to ₹24,999 | ₹0 (exempt) | ₹0 |
| ₹25,000 and above | ₹200 (₹300 in February) | ₹2,500 |
What changed from FY 2025-26 to FY 2026-27
| Item | Before April 2025 | FY 2025-26 onward |
|---|---|---|
| Monthly exemption threshold | ₹15,000 | ₹25,000 |
| Intermediate ₹150 slab | Applied | Removed |
| Standard monthly rate | ₹200 | ₹200 |
| February rate | ₹200 | ₹300 |
| Annual maximum | ₹2,400 | ₹2,500 |
Worked examples
Example 1: ₹24,000 monthly salary — below the threshold
A monthly gross salary of ₹24,000 is below Karnataka's ₹25,000 threshold, so no professional tax is deducted in any month.
- Monthly PT: ₹0
- February PT: ₹0
- Annual PT: ₹0
Key takeaway: below ₹25,000 per month, Karnataka professional tax is nil — the ₹300 February month does not apply either.
Example 2: ₹30,000 monthly salary — standard rate
At ₹30,000 per month the threshold is crossed, so ₹200 is deducted each month except February, when ₹300 is deducted.
- Monthly PT (11 months): ₹200
- February PT: ₹300
- Annual PT: ₹2,500
- Annual gross salary: ₹3,60,000 → PT is about 0.69% of gross pay
Key takeaway: ₹30,000 and ₹50,000 salaries attract the same ₹2,500 annual Karnataka PT — the tax is a flat cap, not a percentage.
Example 3: ₹50,000 monthly salary — capped
Even at ₹50,000 per month, Karnataka professional tax stays at the ₹2,500 annual maximum. There is no higher slab above ₹25,000.
- Monthly PT (11 months): ₹200
- February PT: ₹300
- Annual PT: ₹2,500
- Annual gross salary: ₹6,00,000 → PT is about 0.42% of gross pay
Key takeaway: the professional tax percentage falls as salary rises, because the amount is fixed at ₹2,500 per year once you cross ₹25,000 a month.
Quick facts: Karnataka professional tax FY 2026-27
- Monthly threshold: ₹25,000 (raised from ₹15,000 effective 1 April 2025)
- Standard rate: ₹200 per month for salaries of ₹25,000 and above
- February rate: ₹300 — the only month above ₹200
- Annual maximum: ₹2,500 per employee per year
- Intermediate ₹150 slab: removed, no longer applies
- Legislation: Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (amended 2025)
- Constitutional basis: Article 276 permits states to levy a tax on professions, capped at ₹2,500 per year
Frequently asked questions
What is the Karnataka professional tax for a ₹30,000 monthly salary?
For a ₹30,000 monthly gross salary, Karnataka professional tax is ₹200 per month and ₹300 in February, totalling ₹2,500 for the year. The ₹25,000 monthly threshold is crossed, so the full rate applies from April to January and March, with the higher February rate.
What is the professional tax threshold in Karnataka?
The Karnataka professional tax threshold is ₹25,000 per month. Employees earning up to ₹24,999 per month pay no professional tax. The threshold was raised from ₹15,000 to ₹25,000 with effect from April 2025.
Why is professional tax ₹300 in February in Karnataka?
February carries a ₹300 professional tax rate under the Karnataka schedule, while every other month is ₹200. This single higher month is what makes the Karnataka annual maximum ₹2,500 (₹200 × 11 months + ₹300) rather than ₹2,400. Employers must budget for the higher deduction in February payroll.
How is professional tax calculated in Karnataka?
Karnataka professional tax is based only on monthly gross salary and ignores allowances, deductions and other income. Salary up to ₹24,999 is exempt; from ₹25,000 the deduction is ₹200 per month, rising to ₹300 in February, giving an annual maximum of ₹2,500.
Is professional tax mandatory in Karnataka?
Yes. Professional tax is a compulsory state levy under Article 276 of the Constitution and the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. Employers must deduct it from salary and remit it to the Karnataka state government.
Who is exempt from professional tax in Karnataka?
Employees whose monthly gross salary is below ₹25,000 are exempt. Certain categories such as persons with disability and specific low-income groups may also be exempt under the Act. Employers should confirm current exemption rules with the Karnataka Commercial Taxes Department before payroll runs.
What is the maximum professional tax payable in Karnataka per year?
The maximum professional tax payable in Karnataka is ₹2,500 per employee per year. This is made up of ₹200 per month for eleven months plus ₹300 in February. No employee pays more than this regardless of salary level — the rate does not rise further above ₹25,000, so a ₹50,000 salary and a ₹5,00,000 salary both attract the same ₹2,500 in the year.
Who pays professional tax — employer or employee?
The employer deducts professional tax from the employee's monthly salary and remits it to the state. The economic burden falls on the employee, while the compliance and payment obligation rests with the employer as the enrolled deductor under the Act. Employers must remit the deducted amount to the Karnataka government by the prescribed due date each month. Employers must remit the deducted amount to the Karnataka government by the prescribed due date.
Does professional tax change if I change jobs mid-year in Karnataka?
Each employer deducts professional tax independently based on the salary they pay, and the ₹2,500 annual maximum applies per employer. Changing jobs mid-year can therefore lead to a slightly higher total deduction across the year than staying with one employer for the full year, because the cap does not carry across employers.
Is Karnataka professional tax different from income tax?
Yes, they are entirely separate. Professional tax is a state-level levy capped at ₹2,500 per year, while income tax is a central levy based on annual taxable income and slabs. Professional tax paid is deductible from gross salary when computing your income-tax liability.
Sources and basis
The rates on this page reflect the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 as amended in 2025, which raised the monthly exemption threshold from ₹15,000 to ₹25,000 with effect from 1 April 2025. State schedules can change; confirm the current notification with the Karnataka Commercial Taxes Department before relying on a payroll figure.
States amend slabs and exemptions. Confirm the payroll rule before relying on this result.