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Employers in Karnataka deduct ₹200 a month from employees who earn ₹25,000 or more a month, and ₹300 in February, so ₹2,500 a year. Employees who earn less than ₹25,000 a month pay nothing. The ₹25,000 threshold applies from 1 April 2023 and the February amount from 1 April 2025.
| Monthly gross salary | Tax a month |
|---|---|
| Up to ₹24,999 | Nil |
| Above ₹24,999 | ₹200 |
Set by the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976, as amended in 2023 and 2025.
The employer. It deducts the tax from the salary of each employee who works in Karnataka and pays it to the Karnataka Commercial Taxes Department. What matters is where the employee works, not where the company is registered, so a company with staff in several states deducts each state’s tax for its own team there.
The employer pays what it has deducted to the Karnataka Commercial Taxes Department. Check the current due date on the Karnataka Commercial Taxes Department: professional tax before you file.
The salary calculator takes out Karnataka’s professional tax along with PF, ESI and income tax. Peoplo.ai payroll is designed to support professional tax for every state and shows it on each payslip.
Sources · checked 2 November 2026
General information, not legal or tax advice. Check the state’s notification before you file.
Questions
Short answers about professional tax in Karnataka.
Employers in Karnataka deduct ₹200 a month from employees who earn ₹25,000 or more a month, and ₹300 in February, so ₹2,500 a year. Employees who earn less than ₹25,000 a month pay nothing. The ₹25,000 threshold applies from 1 April 2023 and the February amount from 1 April 2025.
The employer deducts it from the salary of each employee who works in Karnataka and pays it to the Karnataka Commercial Taxes Department. It follows the state where the employee works, not where the company is registered.
The employer pays what it has deducted to the Karnataka Commercial Taxes Department. Check the current due date on the official portal linked on this page before you file.
Under the old regime, yes: professional tax paid is deducted from salary income. Under the new regime it is not.
Peoplo.ai payroll is designed to support professional tax for every state. It applies the slab for the state each employee works in and shows the deduction on the payslip.