Quick answer: Professional tax in Karnataka is nil below ₹25,000 a month and ₹200 a month at ₹25,000 and above, with ₹300 in February, for a total of ₹2,500 a year. There is no separate limit for women. Employers deposit the tax and file Form 5-A by the 20th of the next month on the e-PRERANA portal, and businesses and professionals pay their own ₹2,500 by 30 April. Late payment carries interest at 1.5% a month.
Karnataka levies professional tax under the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976, administered by the Commercial Taxes Department. The State has amended the law three times in four years: the exemption limit rose to ₹25,000 and interest went up in 2023, the February top-up to ₹300 came in 2025, and from 2026 enrolled persons who pay on time are treated as having filed their return. Many older guides still show the earlier figures. This guide gives the current slab, due dates, how to pay online and the penalties, for both employers and enrolled persons. For how PT works across states, see our professional tax guide.
Professional tax slab in Karnataka (2026-27)
| Monthly salary or wages | PT a month | PT a year |
|---|---|---|
| Below ₹25,000 | Nil | Nil |
| ₹25,000 and above | ₹200 (₹300 in February) | ₹2,500 |
The same slab applies to men and women. Two amendments shaped it:
- From 1 April 2023 (Karnataka Act 14 of 2023), the threshold was raised from ₹15,000 to ₹25,000 a month (Khaitan & Co on the 2023 amendment).
- From 1 April 2025 (Karnataka Act 33 of 2025), February's deduction became ₹300 instead of ₹200, taking the yearly total from ₹2,400 to the constitutional maximum of ₹2,500 (text of the 2025 amendment).
If your payroll still deducts ₹200 in February or deducts PT from employees earning between ₹15,000 and ₹24,999, it is working on old rates. Check any salary with our professional tax calculator.
Example
An employee in Bengaluru earns a gross salary of ₹40,000 a month. PT is ₹200 from April to January and in March, and ₹300 in February: 11 × ₹200 + ₹300 = ₹2,500 for the year. A colleague earning ₹24,000 pays nothing. If the colleague's salary rises to ₹26,000 from October, PT starts at ₹200 from October, and the year's total is 5 × ₹200 + ₹300 = ₹1,300 (October to March, with February at ₹300).
What counts as salary
The slab is applied to the salary or wages paid for the month, which in practice is gross monthly pay including allowances. A month with heavy loss of pay can therefore fall below ₹25,000 and attract no PT for that month.
Who pays professional tax in Karnataka
| Point | Registration Certificate (RC) | Enrolment Certificate (EC) |
|---|---|---|
| Who needs it | Every employer with an employee liable to PT | Companies, firms, directors, GST-registered dealers, self-employed professionals and others in the Schedule |
| What is paid | Tax deducted from employees | Own tax, usually ₹2,500 a year |
| Return | Monthly statement Form 5-A; annual return Form 5 | Deemed filed on payment from 1 April 2026 |
| Due date | 20th of the next month | 30 April (or within a month of new enrolment) |
Employers apply for the RC within 30 days of becoming liable, usually when the first employee crosses ₹25,000 a month. A company with such employees therefore holds both an RC for its staff and an EC for itself. PT follows the place of work: an employee working in Karnataka pays under the Karnataka Act even if the employer is registered elsewhere.
Due dates for professional tax in Karnataka
| Compliance | Who | Due date |
|---|---|---|
| Payment of tax deducted + Form 5-A statement | Employer (RC) | Within 20 days of the end of the month (by the 20th) |
| Annual return Form 5 | Employer (RC) | Within 60 days of the end of the year |
| Annual tax | Enrolled person (EC), enrolled before the year | 30 April |
| Annual tax | Newly enrolled during the year | Within one month of enrolment |
| RC application | New employer | Within 30 days of becoming liable |
Under section 6A of the Act the monthly statement is due within 20 days of the end of the month, so PT deducted from October salary is paid and reported by 20 November. The annual Form 5 reconciles the year and is paid net of the amounts already paid with the monthly statements. Add these dates to our payroll compliance calendar.
How to pay professional tax in Karnataka online
Employers (RC)
- Calculate: from the month's payroll, count employees at ₹25,000 and above and total the PT deducted (₹300 each in February).
- Log in: open the professional tax system of the Commercial Taxes Department (ptax.karnataka.gov.in; the e-PRERANA system is also reached at pt.kar.nic.in) and sign in with the RC credentials and OTP.
- File the return: choose File Return, select the period type, month, year and original or revised, and enter the number of employees and tax.
- Pay: make the e-payment against the return online through Khajane-II using the payment modes the portal offers.
- Download: verify and print the Form 5-A and challan receipt, and keep them with the month's payroll.
Enrolled persons (EC): paying the annual fee
A company, director or professional logs in with the EC number, selects the enrolment payment for the year and pays ₹2,500 online. Under the Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2026, in force from 1 April 2026, an enrolled person who has paid the tax for the year is deemed to have filed the return for that year, and the Commissioner can exempt classes of enrolled persons from filing (Lexplosion on the notified 2026 amendment). A Commissioner's notification of 1 April 2026 (PT/CR/09/2025-26) has also exempted specified classes of enrolled persons from filing, subject to supporting documents. The 30 April payment date did not change. For 2026-27 only, the Removal of Difficulties Order 01/2026 (2 May 2026) allowed payment before 5 May 2026 because of portal problems. Employers still file their monthly statements and annual return.
Interest and penalties
- Interest (section 11): simple interest at 1.5% of the tax due for each month or part of a month it remains unpaid, from 1 April 2023 (it was 1.25% earlier). This applies both to late payment and to tax the employer failed to deduct.
- Penalty for non-payment (section 12): where tax is not paid within the time allowed in a demand notice, a penalty equal to 10% of the tax due, after an opportunity to be heard; the 2023 amendment replaced the earlier "up to 50%" and removed the reasonable-cause defence.
- Wilful non-disclosure or evasion: a penalty equal to 100% of the tax assessed, in addition to the tax.
- Late registration and returns: penalties can also apply for not obtaining an RC or EC, or not filing returns, on time. Figures such as ₹1,000 and ₹250 appear on compliance websites, but check the current Act and Rules before relying on them.
Many websites still quote 1.25% interest and a 50% penalty, which were the pre-2023 rates. For how this compares with PF, ESI and TDS penalties, see our payroll penalties guide.
Karnataka vs Maharashtra professional tax
- Threshold: Karnataka exempts everyone below ₹25,000; Maharashtra charges men from ₹7,501 and exempts women up to ₹25,000.
- Due date: Karnataka by the 20th of the next month; Maharashtra by the 15th.
- Interest: Karnataka 1.5% a month; Maharashtra at its prescribed rate.
- Same cap: both total ₹2,500 a year with ₹300 in February.
Full details for Maharashtra are in our Maharashtra professional tax guide.
Common mistakes employers make
- Old threshold: deducting PT from employees earning ₹15,000 to ₹24,999, which stopped from 1 April 2023.
- Missing the February top-up: deducting ₹200 instead of ₹300 in February leaves ₹100 per employee unpaid, which then attracts interest.
- Wrong State: applying the head-office State's rules to staff who actually work in Karnataka, or Karnataka rules to staff based elsewhere.
- Paying without the statement: the Form 5-A statement and the annual Form 5 are still required from employers, even though enrolled persons no longer file once they have paid.
- Forgetting the company's own EC: the ₹2,500 enrolment tax for the company and each director is separate from the tax deducted from staff.
PT in payroll
- PT is a statutory deduction on the payslip each month; see payroll deductions.
- Under the old income-tax regime, PT paid is deductible from salary income; the new regime does not allow it.
- On exit, deduct PT for the final month on the salary paid for that month, including the February ₹300 if the exit falls in February.
Related reading: Professional tax in India · State minimum wages tracker · Payroll compliance
Get PT, PF, ESI and TDS right every month. The Indian Salary & Payroll Management e-Book explains every statutory deduction with worked examples, due dates and checklists.
Frequently asked questions
What is the PT slab in Karnataka?
Karnataka has a single slab for salaried employees, with no difference for men and women. Monthly salary or wages below 25,000 rupees attract no professional tax. At 25,000 rupees and above, the tax is 200 rupees a month and 300 rupees in February, which totals 2,500 rupees a year.
Who is eligible for PT in Karnataka?
Every employee whose monthly salary or wages are 25,000 rupees or more pays professional tax through the employer. Companies, firms, directors, GST-registered dealers and self-employed professionals pay their own professional tax, usually 2,500 rupees a year, under an enrolment certificate. Every employer with an employee liable to PT must also obtain a registration certificate and deposit the tax deducted.
What is the due date for PT payment in Karnataka?
Employers must pay the tax deducted and file the monthly statement in Form 5-A within 20 days of the end of the month, that is, by the 20th of the next month. Enrolled persons who were enrolled before the start of the year pay their annual tax by 30 April; those enrolled during the year pay within one month of enrolment.
How do I pay the PT annual fee in Karnataka?
Log in to the Karnataka Commercial Taxes e-PRERANA professional tax portal with your enrolment certificate number, choose the enrolment payment option for the year, generate the challan and pay online through Khajane-II using the payment modes the portal offers. From 1 April 2026, an enrolled person who has paid the full tax for the year is deemed to have filed the return for that year.
What is the penalty for late professional tax payment in Karnataka?
From 1 April 2023, late payment attracts simple interest at 1.5% of the tax due for each month or part of a month. The authority may also impose a penalty equal to 10% of the tax due, and a higher penalty applies where tax is evaded by wilful non-disclosure. Separate penalties apply for late registration and late returns.
Is there professional tax for women in Karnataka?
Yes. Unlike Maharashtra, Karnataka does not have a separate exemption limit for women. Women and men both pay professional tax only when monthly salary or wages are 25,000 rupees or more.
Position as of 15 November 2026. Based on the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976, as amended by Karnataka Act 14 of 2023, Act 33 of 2025 and the Amendment Act of 2026, and the Rules, 1976. General information, not legal or tax advice.