Professional Tax in Karnataka (2026): Slab, Registration, Online Payment and Due Dates

If you run payroll in Bengaluru, Mysuru, Mangaluru or Hubballi, own a GST-registered business in Karnataka, or practise as a doctor, lawyer, CA or consultant in the state, professional tax is one of the first state levies you meet. This guide sets out the current Karnataka slab (including why February costs more), who pays the flat annual tax, how registration and enrolment work on ptax.karnataka.gov.in, the monthly and annual due dates, the 2026 change to returns, the penalties as amended in 2023, and worked payroll examples in rupees.

Quick answer

In Karnataka, salaried employees earning ₹25,000 or more a month pay ₹200 a month and ₹300 in February — ₹2,500 a year a year. Below ₹25,000, the tax is nil. Businesses and professionals pay ₹2,500 a year. Employers file Form 5-A and pay within 20 days after the month ends; enrolled persons pay before 30 April.

• The ₹300 February deduction applies from 1 April 2025 (Karnataka Act 33 of 2025)

• Register or enrol on ptax.karnataka.gov.in within 30 days of starting; pay by net banking, card or UPI

• From 1 April 2026, an enrolled person who pays is treated as having filed the return

• Late payment: interest 1.5% a month plus a penalty of 10% of the tax due

Karnataka professional tax slab for 2026

Karnataka levies professional tax under the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976. The rates sit in the Schedule to the Act, and for salaried people only the first entry matters. It has changed twice in recent years: the 2023 amendment (Karnataka Act 14 of 2023) lifted the starting point from ₹15,000 to ₹25,000 a month, and the 2025 amendment (Karnataka Act 33 of 2025) added the higher February deduction. Nothing in the salary slab changed for 2026-27.

The reason for the odd February figure is constitutional. Article 276(2) caps professional tax at ₹2,500 a year per person per year. A flat ₹200 a month only reaches ₹2,400, so the state's 2025-26 Budget (paragraph 476 of the Budget Speech) proposed raising the annual take to the ceiling. The Bill did it by keeping ₹200 for eleven months and setting ₹300 for February. Maharashtra uses the same trick.

"Salary or wage" means the monthly figure paid, not only basic pay. The Act has two rules that payroll teams often miss. A bonus is spread over the twelve months (or the months it relates to) before you apply the ₹25,000 test, and arrears of salary are spread over the months they belong to. So a ₹40,000 Diwali bonus paid to someone on ₹22,000 a month does not push October above the threshold on its own; spread over twelve months it adds about ₹3,333 a month, which still leaves the person below ₹25,000.

Who pays the ₹2,500 annual tax

Everyone other than a salaried employee pays a flat ₹2,500 a year under entries 2 to 12 of the Schedule, as substituted from 1 April 2023. The main groups are:

• Anyone registered, or liable to be registered, under the Karnataka GST Act — so every GST-registered shop, trader, manufacturer and service provider in the state.
• Self-employed professionals with more than two years' standing — lawyers, consultants, agents, CAs and actuaries, engineers, health-care professionals, estate agents, beauty parlours, dry cleaners, interior decorators, journalists, advertising agencies, training and driving institutes, astrologers and vaastu consultants.
• Owners of nursing homes, hospitals, diagnostic centres, clinical labs, gyms and fitness centres, fuel and EV charging stations, plus directors, actors and others named in entry 4.
• Private educational institutions and tutorial colleges.
• Employers of establishments under the Karnataka Shops and Commercial Establishments Act with more than five employees.
• Companies, banks and co-operative societies engaged in any profession, trade or calling.
• Transport vehicle owners (other than autorickshaws), goods transport agencies, licensed liquor dealers, money lenders and chit funds.
• A residual entry for anyone else paying income tax on income from a profession, trade or calling, and another for anyone else with two years' standing who is not exempt.

Five explanations shape how this works in practice. If you fall under more than one entry, you pay under only one. If you lease the business, the lessee pays. Partners of a firm pay nothing separately when the firm pays. And every additional place of business counts as a separate person, unless it is used only as a godown. A Bengaluru retailer with three showrooms in the state therefore owes three lots of ₹2,500 a year, plus the deductions for its staff.

Exemptions in Karnataka

Section 3 of the Act and the portal's FAQ give the main exemptions:

• Salary below ₹25,000 a month — no deduction at all.
• Senior citizens — individuals aged 60 years or more. The 2018 amendment lowered the age from 65 to 60 and made clear that it applies to individuals only; a firm, company, HUF, society or club cannot claim it because its proprietor or partner is over 60.
• Persons with disabilities, as listed in state notifications. The FAQ points to the notifications for the exact conditions, so ask for the disability certificate and keep a copy.
• The 120-day rule — no tax is payable for a year in which a person carries on the profession or employment for 120 days or less.

The state can also exempt or reduce the tax for any class by notification under section 29. Before marking an employee exempt, keep the age proof or certificate in the personnel file, because an assessing officer will ask for it.

Registration (PTRC) vs enrolment (PTEC)

Karnataka uses the same two certificates as other states, though payroll teams often borrow Maharashtra's labels PTRC and PTEC.

Registration certificate vs enrolment certificate in Karnataka

	Certificate of Registration (employer, 'PTRC')	Certificate of Enrolment (own tax, 'PTEC')
Who needs it	Every employer, other than a government officer, with staff liable to PT	Companies, GST-registered businesses, professionals and others in entries 2–12
What you pay	Tax deducted from each employee's salary	Your own ₹2,500 a year
Apply within	30 days of starting business or becoming liable	30 days of starting, or of becoming liable at a different rate
Pays	Monthly with Form 5-A (quarterly if ≤ ₹5,000 a month)	Once a year, before 30 April
Return	Annual Form 5 within 60 days of the year end	Deemed filed once paid (from 2026-27)

Who needs it

Certificate of Registration (employer, 'PTRC')

Every employer, other than a government officer, with staff liable to PT

Certificate of Enrolment (own tax, 'PTEC')

Companies, GST-registered businesses, professionals and others in entries 2–12

What you pay

Certificate of Registration (employer, 'PTRC')

Tax deducted from each employee's salary

Certificate of Enrolment (own tax, 'PTEC')

Your own ₹2,500 a year

Apply within

Certificate of Registration (employer, 'PTRC')

30 days of starting business or becoming liable

Certificate of Enrolment (own tax, 'PTEC')

30 days of starting, or of becoming liable at a different rate

Pays

Certificate of Registration (employer, 'PTRC')

Monthly with Form 5-A (quarterly if ≤ ₹5,000 a month)

Certificate of Enrolment (own tax, 'PTEC')

Once a year, before 30 April

Return

Certificate of Registration (employer, 'PTRC')

Annual Form 5 within 60 days of the year end

Certificate of Enrolment (own tax, 'PTEC')

Deemed filed once paid (from 2026-27)

Section 5(3) requires the application within 30 days of commencing the profession, trade or employment, and the assessing authority should grant the certificate within 30 days of an application that is in order. A private limited company with staff in Bengaluru needs both: registration to deduct from salaries, and enrolment for its own ₹2,500 a year. A sole proprietor with no employees needs only enrolment.

On the current portal, enrolment is a one-time online process. Self-employed professionals register with their PAN; GST-registered taxpayers register with their GSTIN. You verify a mobile OTP, set a password, complete the profile, and the system shows a probable demand based on your Schedule entry, which you can correct before paying. The enrolment certificate is digitally signed, carries a QR code that anyone can scan to verify it, and is emailed if you have given an email address. Older enrolment numbers and payment history were carried over, but existing taxpayers still need to complete the one-time enrolment on the new portal.

Is there an enrolment fee? We found no fee for registration or enrolment in the Act or on the portal; the only payment is the tax itself. Agents may charge for doing the paperwork, which is a service charge, not a government fee.

How to pay professional tax online in Karnataka

Paying Karnataka PT on ptax.karnataka.gov.in

1. 1

   Open the portal

   Go to ptax.karnataka.gov.in. Employers choose Employer Login; businesses and professionals choose Enrolment Login, or New Enrolment if they have never enrolled on the new system.

   Open the Karnataka PT portal
2. 2

   Enrol with PAN or GSTIN (first time only)

   Self-employed professionals enrol with PAN; GST-registered businesses with GSTIN. Enter the name exactly as on the PAN card — extra spaces cause a mismatch — and verify the OTP sent to your mobile.

3. 3

   Check the demand

   The portal shows the tax for your Schedule entry (₹2,500 a year for most). Employers enter the month's salaries, the number of employees at or above ₹25,000 and the tax deducted in the Form 5-A statement.

   Tip: If you have more than one place of business, each one is a separate person — enrol and pay for each.

4. 4

   Pay online

   Pay by net banking, debit card, credit card or UPI. Add interest separately if you are late.

5. 5

   Save the proof

   Download the receipt and, for enrolled persons, the digitally signed enrolment certificate. Employers keep payroll registers and challans for five years.

If anything fails, the Commercial Taxes Department runs a helpdesk at 1800 425 6300 (toll free) and [email protected], both listed on the portal's contact page.

Due dates in Karnataka

Karnataka professional tax calendar

Within 30 days of starting

Apply for registration (employer) or enrolment (own tax)

within 20 days after the month ends

Employer files Form 5-A and pays the month's deductions — September PT by 20 October

20 days after 31 May, 31 Aug, 30 Nov, end-Feb

Quarterly option when monthly deductions are ₹5,000 or less

Before 30 April

Enrolled persons pay the year's tax (2026-27 extended to 5 May 2026)

within 60 days of the year end (30 May)

Employer's annual return in Form 5 for the year to 31 March

Within one month of enrolment

Tax for persons who enrol after the year has begun

Employers. Section 6A requires a monthly statement in Form 5-A, with proof of payment, within 20 days after the month ends. A statement without payment is not treated as filed. Where the tax deducted in a month is ₹5,000 or less — that is, 25 or fewer employees at ₹200 — you may file quarterly instead. Karnataka's quarters are unusual: they end on 31 May, 31 August, 30 November and the last day of February, so the quarterly dates are 20 June, 20 September, 20 December and 20 March. Most employers simply pay monthly to keep things in step with payroll. The annual return under section 6 is due within 60 days of the year end (30 May), with any balance paid first.

Enrolled persons. Section 10(2) sets the date: before 30 April for anyone enrolled before the year begins, and within one month of enrolment for anyone who enrols later. For 2026-27 the portal carried a notice extending the last date to 5 May 2026. The 30 April date dates back to 1986, when the state moved it from 30 September so traders could pay alongside their annual sales-tax fee.

The 2026 change. Karnataka Act 22 of 2026, in force from 1 April 2026, added two provisos to section 10(1). An enrolled person who has paid the tax for a year is now deemed to have filed the return for that year, and the Commissioner can exempt classes of enrolled persons from filing by notification. The Statement of Objects and Reasons says the old rule made people who had already paid the full tax file a return anyway, with no revenue gain. In practice, a company or professional who pays ₹2,500 a year on time has nothing more to file for 2026-27.

Worked payroll examples in ₹

Example 1 — one employee, a full year. Priya earns ₹48,000 a month at a Bengaluru firm. April 2026 to January 2027 is ten months at ₹200 = ₹2,000; February 2027 is ₹300; March is ₹200. Total: ₹2,500, exactly the constitutional cap.

Example 2 — a 12-person startup in HSR Layout. Three staff earn ₹18,000–₹24,000, seven earn ₹30,000–₹80,000 and two founders draw ₹1.5 lakh each as salaried directors.

• Monthly deduction (April–January, March): 3 × nil + 9 × ₹200 = ₹1,800
• February deduction: 9 × ₹300 = ₹2,700
• Because the monthly tax (₹1,800) is under ₹5,000, the startup could file quarterly; it chooses monthly. September's ₹1,800 is due with Form 5-A by 20 October 2026.
• The company also owes its own ₹2,500 a year as a company and GST-registered person — once, not twice, because a person covered by more than one entry pays under only one.
• Annual PT outgo: 9 employees × ₹2,500 = ₹22,500 deducted from salaries, plus ₹2,500 of the company's own.

Example 3 — a joiner crossing the threshold. Ravi joins on 1 July at ₹24,000 and gets a raise to ₹27,000 from November. July to October: nil. November to January: 3 × ₹200 = ₹600. February ₹300, March ₹200. Total for the year: ₹1,100.

Example 4 — arrears. Meena earns ₹23,500. In December she receives ₹9,000 of arrears for a pay revision backdated to April (₹1,000 a month for nine months). Spread over the months they relate to, April to December become ₹24,500 each — still below ₹25,000. No deduction. Had the arrears been added to December alone, the month would have shown ₹32,500 and attracted ₹200 that the Act doesn't require.

Example 5 — a dentist with two clinics. A dentist with more than two years' practice runs clinics in Jayanagar and Whitefield. Each additional place of business is a separate person, so the dentist pays ₹2,500 a year for each clinic, before 30 April. If the dentist employs a receptionist on ₹26,000, the clinic also registers as an employer and deducts ₹200 a month.

Our free salary slip generator lets you show the PT line on each payslip, including the February ₹300.

Penalties, interest and how mistakes get fixed

The 2023 amendment rewrote the money penalties, so pages quoting "1.25% interest" or "penalty up to 50%" are out of date.

Karnataka PT penalties (as amended from 1 April 2023)

1.5% a month

Interest on late tax

per month or part, s.11

10% of the tax due

Penalty for non-payment

s.12, on top of interest

100%

Penalty on escaped tax

wilful non-disclosure, s.9(2)

₹1,000

False information

maximum, s.5(6)

Interest. An employer who fails to deduct, or deducts and fails to pay, owes simple interest of 1.5% a month of the tax for each month or part of a month it stays unpaid. The same rate applies to an enrolled person, or someone liable to enrol, who pays late.

Penalty for non-payment. Under section 12, the assessing authority can impose a penalty equal to 10% of the tax due if tax isn't paid by the due date or the date in the demand notice. Before 2023 the penalty was up to 50% and only "without reasonable cause"; both qualifications are gone.

Escaped assessment. Where tax escaped assessment because of wilful non-disclosure, the authority can reassess within four years and add a penalty equal to 100% of the tax.

Not deducting is not a defence. An employer who did not deduct from salary is still treated as an assessee in default for the tax. If you missed deductions for a few months, pay the tax and interest from the business and recover from employees only going forward, after telling them.

Prosecution. Failing to comply with the Act or rules without sufficient cause can lead, on conviction, to a fine up to ₹5,000 (plus ₹50 a day if continuing). Directors and managers in charge can be proceeded against when the offence is the company's.

Common fixes. Forgetting the February ₹300: deduct the missing ₹100 in March and pay it with interest. Deducting from someone below ₹25,000: refund it in the next payslip and adjust the next Form 5-A. Paying for one branch when you have three: enrol the other places of business and pay their tax with interest.

Karnataka professional tax checklist

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• Set the payroll slab: nil below ₹25,000, ₹200 a month, ₹300 in February
• Spread bonus and arrears over the months they relate to before applying the threshold
• Hold a registration certificate for staff and an enrolment certificate for the business — one per place of business
• File Form 5-A and pay within 20 days after the month ends
• Pay the business's ₹2,500 a year before 30 April
• File the employer's annual return within 60 days of the year end (30 May)
• Keep age and disability proofs for exempt employees
• Keep payroll records and challans for five years

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Employees in more than one state

Professional tax follows the place of work, not the head office. A Bengaluru company with a sales team in Pune deducts Maharashtra PT for them and registers in Maharashtra; one with staff in Kolkata applies West Bengal's new slabs from October 2026; one with staff in Chennai deals with half-yearly tax paid to the local body. An employee in Bhubaneswar pays nothing, because Odisha abolished professional tax from 1 April 2026. Remote employees are taxed where they actually work, so update their state in payroll when they move.

The ₹2,500 a year cap applies per person across all levies, so a person who changes job mid-year in Karnataka should not end up paying more than ₹2,500 a year in total. If an employee shows payslips proving the full year's tax already deducted by a previous employer, you can stop deducting for the rest of the year.

Income tax treatment

Salaried employees can deduct the professional tax they pay from salary income only under the old income-tax regime; the new default regime does not allow it. A business or professional can claim its own enrolment tax as a business expense. Our TDS calculator helps with the other salary deductions.

Official links

• Karnataka Professional Tax portalEmployer login, enrolment, e-payment, notices
• Karnataka PT FAQEnrolment, payment modes, exemptions
• PT Schedule (2023 substituted Schedule)
• Amendment Bill 2025 — ₹300 for February
• Amendment Bill 2026 — deemed return
• Karnataka PT Act, 1976 with amendments

What to do next

Check that your payroll applies ₹300 in February 2027, confirm every place of business is enrolled, and diarise the 20th of each month for Form 5-A. If you have staff in several states, our professional tax due dates table puts every state's deadline together and the state-wise professional tax guide compares slabs. Setting pay for new hires? Check the Karnataka minimum wages first, and if you are about to cross the GST threshold, the GST registration guide explains why that also brings you into Karnataka PT.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What is the professional tax slab in Karnataka for 2026-27?

Salaried employees in Karnataka pay nothing if their monthly salary is below ₹25,000. At ₹25,000 or more, the employer deducts ₹200 a month and ₹300 in February, which adds up to ₹2,500 a year. The February rate came in from 1 April 2025 under Karnataka Act 33 of 2025, and nothing about the salary slab changed for 2026-27.

Why is professional tax ₹300 in February in Karnataka?

The Constitution caps professional tax at ₹2,500 a year a person per year. Karnataka used to charge a flat ₹200 a month, or ₹2,400 a year. The 2025 amendment, announced in the 2025-26 Budget, kept ₹200 for eleven months and set ₹300 for February, so a full year now reaches the ₹2,500 ceiling.

What is the last date for professional tax payment in Karnataka?

Employers file the Form 5-A statement and pay the tax within 20 days after the month ends, so September deductions are due by 20 October. Enrolled persons — companies, GST-registered businesses and professionals — pay their annual tax before 30 April. For 2026-27 the portal extended that date to 5 May 2026. Anyone enrolling mid-year pays within one month of enrolment.

How do I pay professional tax online in Karnataka?

Go to ptax.karnataka.gov.in. Employers use Employer Login to file the monthly statement and pay. Businesses and professionals use Enrolment Login, or New Enrolment with PAN (self-employed) or GSTIN (GST-registered), check the demand shown for their Schedule entry, and pay by net banking, debit or credit card or UPI. The enrolment certificate is digitally signed and emailed.

Who is exempt from professional tax in Karnataka?

Employees earning less than ₹25,000 a month, individual senior citizens aged 60 years or more, and persons with disabilities listed in government notifications. No tax is payable for a year in which a person works or practises for 120 days or less. Partners need not pay separately when the firm pays. The age exemption does not cover firms, companies or HUFs.

What is the penalty for late payment of professional tax in Karnataka?

Interest runs at 1.5% a month for each month or part of a month the tax stays unpaid, and the assessing authority can add a penalty of 10% of the tax due. An employer who does not deduct or deposit is treated as an assessee in default. Giving false information in an application can cost up to ₹1,000, and conviction for other breaches carries a fine of up to ₹5,000 (plus ₹50 a day if continuing).

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.The Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Bill, 2025 (LA Bill No. 08 of 2025) — Karnataka Legislative Assembly (text via PRS Legislative Research) · accessed 9 October 2026
2. 2.The Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Bill, 2026 (LA Bill No. 08 of 2026) — Karnataka Legislative Assembly (text via PRS Legislative Research) · accessed 9 October 2026
3. 3.Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 with amending Acts to 2026 (Acts 6 of 2018, 14 of 2023, 33 of 2025, 22 of 2026) — Government of Karnataka (compilation via PRS Legislative Research) · accessed 9 October 2026
4. 4.Professional Tax portal — home page, notices and contact — Commercial Taxes Department, Government of Karnataka · accessed 9 October 2026
5. 5.Professional Tax portal — FAQ — Commercial Taxes Department, Government of Karnataka · accessed 9 October 2026
6. 6.PT Schedule (Karnataka Act 14 of 2023 — substituted Schedule) — Commercial Taxes Department, Government of Karnataka · accessed 9 October 2026
7. 7.Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2025 — greytHR · accessed 9 October 2026
8. 8.Karnataka notifies the PT (Amendment) Act, 2026 to simplify compliance — Lexplosion · accessed 9 October 2026