Professional Tax in Karnataka: Slabs, Calculation & Payment Guide (2025)
Professional Tax (PT) is a small but consistent deduction on every Bangalore employee’s payslip. Here is the complete slab breakdown, the February surprise most employees forget, and everything employers need to know.
What is Professional Tax?
Professional Tax is levied under Article 276 of the Constitution, which allows state governments to tax salaried employees and self-employed professionals. In Karnataka it is governed by the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976. The employer deducts PT and remits it to the state government.
Karnataka PT Slabs (FY 2025–26)
| Monthly Gross Salary | PT per Month | Exception |
|---|---|---|
| Up to ₹24,999 | ₹0 | Nil |
| ₹25,000 and above | ₹200 | ₹300 in February |
PT Calculation Formula
Example: Bangalore Software Engineer, June 2025
| Salary Component | Amount |
|---|---|
| Basic | ₹40,000 |
| HRA | ₹16,000 |
| Special Allowance | ₹12,000 |
| Gross Earned | ₹68,000 |
| Professional Tax (June) | ₹200 |
Who Pays PT in Karnataka?
- Salaried employees earning ₹25,000+ monthly gross
- Self-employed professionals: doctors, lawyers, engineers, consultants
- Business owners and partners of firms
PT Exemptions
- Employees with monthly gross below ₹25,000
- Members of the Armed Forces
- Parents or guardians of children with certified disabilities
Tax Deductibility of PT
PT paid is fully deductible from gross salary under Section 16(iii) of the Income Tax Act, reducing taxable income by ₹2,500/year. On an after-tax basis, the true cost of PT is lower than the headline amount.
Employer Obligations
Employers with 5+ employees must register with the Karnataka Commercial Tax Department. PT deducted must be remitted by the 20th of the following month, with annual returns due by 30th April.
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