Professional Tax
Professional Tax in Karnataka — Slabs & How to Calculate
Karnataka charges no professional tax below ₹25,000/month, then a flat ₹200/month — ₹300 in February — for a ₹2,500 annual total.
Professional tax is a state-level deduction, not a central one, so Karnataka sets its own threshold and rate independent of the Income Tax Act. Since 1 April 2025, the Karnataka Professional Tax (Amendment) Act, 2025 raised the exemption threshold from ₹15,000 to ₹25,000 a month — anyone earning below ₹25,000 now pays nothing.
Above that threshold, Karnataka charges a flat ₹200 a month for eleven months, plus ₹300 in February, which adds up to exactly ₹2,500 for the year — the constitutional cap on professional tax under Article 276(2). It isn't graduated the way some other states' slabs are; once you reach ₹25,000, the rate is the same whether you earn ₹25,000 or ₹2,50,000 a month.
For salaried employees, the employer deducts this every month and deposits it with Karnataka's commercial tax department. Self-employed professionals register and pay it themselves, typically as an annual or half-yearly lump sum depending on how they're registered.
Worked example
A standard month works out to ₹200.00. A ₹40,000-a-month salary in Karnataka: ₹200 deducted in each of April through January, ₹300 deducted in February, ₹200 again in March — ₹2,500 for the full financial year. A salary below ₹25,000 would owe nothing at all — but exactly ₹25,000 is taxed.
To see how Karnataka compares with other states, including what the same salary costs in each, read our state-wise professional tax slabs guide.
Frequently asked questions
What is the professional tax slab in Karnataka in 2026?
Nil below ₹25,000 a month. From ₹25,000 a month, ₹200 a month, with ₹300 in February, so ₹2,500 a year. The threshold rose from ₹15,000 to ₹25,000 on 1 April 2025.
Why is February different from every other month?
Karnataka structures its slab so the annual total lands on exactly ₹2,500 — the maximum professional tax any state is constitutionally allowed to charge under Article 276(2). Eleven months at ₹200 comes to ₹2,200, so February carries the remaining ₹300 to reach the ₹2,500 cap.
Does the ₹25,000 threshold apply to gross or net salary?
Gross salary — before deductions like PF, professional tax itself, or TDS. Check your specific salary structure against Karnataka's official notification if you're near the threshold, since what counts as "salary" for this purpose can include certain allowances.
Is professional tax deducted even if I'm not a salaried employee?
Yes, if you're a self-employed professional, trader, or business owner in Karnataka above the threshold — you register and pay it directly rather than having an employer deduct it, usually as a lump sum rather than monthly.