If you run payroll in Bengaluru, a small February difference can turn into a year-end reconciliation problem. Your software may deduct ₹200 from each qualifying employee every month. That looks right until February arrives: Karnataka now requires ₹300 for that month, bringing a full year's professional tax to ₹2,500 for an employee liable throughout the year.
The rate isn't the only thing to check. An employer's monthly Registration Certificate (RC) obligation is different from the business's own annual Enrolment Certificate (EC) liability. Karnataka also made two changes in 2026 that matter for enrolled persons: a special FY 2026–27 payment-date extension and a rule deeming the return filed after the year's tax has been paid.
This guide explains the 2026–27 Karnataka professional tax (PT) slab, who must register, when payments are due, how to file online, and what to do when salary or employee location changes. Rates and procedures are cross-checked with the Karnataka Commercial Taxes Department and its published legislation.
Karnataka professional tax slab for 2026–27
For an employee within the taxable salary band, PT is calculated month by month, not as a flat yearly charge regardless of employment history.
| Monthly salary or wages | April–January and March | February | Full-year amount if liable all 12 months |
|---|---|---|---|
Below ₹25,000 | Nil | Nil | Nil if below threshold throughout |
₹25,000 and above | ₹200 per liable month | ₹300 | ₹2,500 |
The schedule applies at ₹25,000 exactly, not only when salary exceeds ₹25,000. Its February exception was introduced by the Karnataka Tax on Professions, Trades, Callings and Employments (Amendment) Act, 2025 (Act 33 of 2025), effective from 1 April 2025. The government's official amendment PDF and employer-portal FAQ confirm the treatment.
Karnataka salary PT at a glance
Threshold
₹25,000
The taxable salary band begins at this monthly figure
Ordinary month
₹200
Deduct for each eligible employee except February
February
₹300
Special monthly rate under the 2025 amendment
Full liable year
₹2,500
11 × ₹200 plus 1 × ₹300
Why does Karnataka deduct ₹300 in February?
The constitutional ceiling for professional tax is ₹2,500 per person per year. At the old ₹200-a-month payroll rate, twelve months gave ₹2,400. The amendment sets the February deduction at ₹300, making 11 × ₹200 + ₹300 = ₹2,500 for a person liable every month.
This is not a separate ₹300 annual charge. It replaces February's normal ₹200 deduction; payroll should not deduct both ₹200 and ₹300 for the same month.
Does ₹25,000 refer to basic pay or gross salary?
Do not test basic pay alone. Under the Karnataka PT Act, the definition of salary or wages includes remuneration such as dearness allowance, certain allowances, arrears, bonuses and specified perquisites. The treatment of a bonus may involve allocation across the period to which it relates. Use the legally relevant salary/wage amount and maintain a calculation sheet rather than assuming any one payslip line decides liability. See the Karnataka PT Act text .
Example: Neha's monthly taxable salary/wages are ₹24,800. Ordinarily there is no employee PT. When her regular salary becomes ₹26,000 in October, PT starts with the October payroll, assuming no exemption and that the relevant definition is met. If an unusual month includes bonus or arrears, assess the statutory treatment rather than automatically taxing that month using the gross payment figure.
Who pays Karnataka professional tax: employees, employers and businesses?
There are two related obligations that payroll teams sometimes put in the same account by mistake.
| Responsibility | Certificate | What is paid | Frequency |
|---|---|---|---|
Employer withholding PT from liable employees | RC (Registration Certificate) | Amount deducted from qualifying salaries | Monthly statement, return and payment workflow |
Business, professional or other person within the enrolment schedule | EC (Enrolment Certificate) | Own professional tax, ordinarily ₹2,500 for covered categories | Annual, subject to statutory exceptions |
A Bengaluru company can need both: one payment for its own enrolment and separate payroll deductions remitted for eligible employees. The fact that the entity has an EC does not settle its staff deductions.
When must an employer get RC registration?
If even one employee is liable to Karnataka professional tax, the employer must address registration, deduction and payment. The Karnataka employer portal FAQ expressly refers to employers with one employee and the next-month 20th deadline. Registration can be initiated using PAN or TAN through the official employer PT portal .
A company with ten workers, nine earning ₹20,000 and one earning ₹40,000, should not assume it is outside employer PT simply because most workers are below the slab.
Who requires EC enrolment?
The statutory schedule includes various classes, among them GST-registered or registrable persons, covered companies, specified professionals and establishments, subject to applicable conditions and exemptions. For example, certain self-employed professional entries are tied to a minimum standing in the profession. Not every newly started individual business automatically owes the same annual amount.
Use the actual category in the Karnataka PT schedule and the department's enrolment FAQ to determine if and when liability begins. The portal explains that separate partners do not necessarily pay again when tax has been paid against the firm; do not duplicate an EC payment without checking the facts.
Karnataka professional tax due dates for 2026–27
The employee deduction and the entity's own enrolment tax have different clocks.
| Filing or payment | Standard due date | Important 2026–27 position |
|---|---|---|
Employer monthly statement and PT payment (RC) | 20th of the succeeding month | February 2027 payroll is generally handled by 20 March 2027 |
Annual EC tax for a person enrolled before the financial year starts | Before 30 April of that financial year under the normal provision | Extended to before 5 May 2026 for FY 2026–27 by a special government order; see exact order wording |
Annual EC tax for a newly enrolled person after the year begins | Within one month of enrolment, subject to the Act | The separate May 2026 extension was for persons enrolled before FY 2026–27 began |
The exceptional date comes from Karnataka's Removal of Difficulties Order (01/2026), dated 2 May 2026 . That order refers to payment before 5 May 2026. For day-sensitive late-payment questions, use the precise legal wording and the period-specific portal notice instead of silently assuming the deadline was an ordinary 30 April date.
The 5 May 2026 extension was specific to FY 2026–27 and covered the stated class of existing enrolled taxpayers. Do not describe it as the permanent April/May due date for all future years.
An additional 2026 amendment affects EC returns
Karnataka Act 22 of 2026, effective 1 April 2026, changed Section 10: an enrolled person who pays the annual PT is deemed to have furnished the return for that year. The Commissioner may also exempt categories of enrolled persons from filing subject to conditions. See the 2026 amendment gazette .
This does not eliminate the employer's RC payroll statement/return duties. It concerns enrolled persons' annual returns, not the routine reporting of employee salary deductions.
How to register and pay Karnataka professional tax online
Karnataka operates separate employer and enrolment journeys. Start from a government portal instead of a third-party lookalike.
Employer RC: registration and monthly payment
Employer professional tax workflow
-
Open the official employer portal
Visit Karnataka employer PT and select the PAN- or TAN-based RC option that applies to your entity
-
Register or sign in
Verify PAN/TAN and the required contact details; existing users should recover their login rather than opening duplicate accounts
-
Prepare the monthly payroll calculation
Identify workers with taxable salary/wages of at least ₹25,000, review exemptions and compute ₹200 or February's ₹300 for each eligible worker
-
Select the salary month and complete the statement
Follow the employer portal's return/payment workflow for the relevant period and confirm the amount
-
Make the e-payment
Choose a supported payment mode, check success and submit the return as the portal requires
-
Save the records
Download the submitted PT return/Form 5-A and payment receipt; reconcile with salary slips and the payroll ledger
The official employer FAQ describes this sequence and lists banking and other payment modes. If the bank has debited the amount but the website shows a failed transaction, use the portal's Verify e-payment option before paying again.
EC: annual enrolment and payment
- Open the official Karnataka PT enrolment website .
- Choose the applicable route, such as Self Employed Professional (PAN) or GST Enrolled Taxpayer (GSTIN).
- Complete PAN/GSTIN verification, mobile OTP, account setup and business profile.
- Check the correct statutory schedule entry, tax liability and any legally available exemption.
- Make the payment using the mode provided and retain the electronic receipt and digitally signed EC certificate.
The department's EC FAQ explains these steps and notes that pre-existing enrolment holders may need one-time onboarding in the newer system. It also provides certificate verification by QR code.
Karnataka professional tax calculation: Bengaluru payroll example
Consider a hypothetical Bengaluru firm with ten employees throughout FY 2026–27. None belongs to an exempt class, and their liable salary bands remain unchanged all year.
| Employees | Monthly salary per employee | Ordinary month PT | February PT |
|---|---|---|---|
2 | ₹22,000 | ₹0 | ₹0 |
3 | ₹25,000 | 3 × ₹200 = ₹600 | 3 × ₹300 = ₹900 |
5 | ₹46,000 | 5 × ₹200 = ₹1,000 | 5 × ₹300 = ₹1,500 |
Total | ₹1,600 | ₹2,400 |
The annual employer remittance is 11 × ₹1,600 + ₹2,400 = ₹20,000. That represents ₹2,500 for each of the eight liable employees. If the firm also owes its own ₹2,500 EC tax under the schedule, that is separate, making the illustrated combined annual outflow ₹22,500—not ₹20,000.
These numbers assume every employee remains eligible for all twelve months and the business is liable for its own EC tax. New hires, resignations, changing pay, statutory exemptions and the treatment of arrears may change the result.
What if someone joins in January or leaves in August?
The employee PT is computed for the liable months rather than charging the full ₹2,500 automatically. For example, a qualifying employee paid salary in January, February and March would generally generate ₹200 + ₹300 + ₹200 = ₹700, assuming the conditions apply in each month. For an employee who does not work in February, do not add the February ₹300 simply to reach a yearly total.
Karnataka PT exemptions: what payroll should verify
A salary below ₹25,000 for the relevant month falls outside the taxable employee slab. In addition, the law and notifications provide specific exemptions. The department's employer FAQ and 2026 enrolment exemption notification discuss categories including persons aged 60 or above and prescribed disability categories, with documentary conditions.
Some exemption provisions differ between salary earners and enrolled persons. A 2026 notification about documents supporting EC return exemptions does not by itself establish that every employer can stop deducting employee PT in an equivalent situation.
Before marking an employee exempt, record the exemption category, relevant current provision, required evidence and effective date. Do not rely solely on a staff member's verbal statement or an old payroll flag.
Remote workers and employees paid by a head office elsewhere
For a person ordinarily working in Bengaluru, Karnataka PT cannot be dismissed simply because their salary is sent from a company's Mumbai or Delhi office. The official employer FAQ explains that the employee's work location matters, not merely the location of payroll disbursement.
For permanent work from another state, examine that state's professional-tax law, establishment structure and actual employment location. A multi-state employer should document its approach to avoid double deductions and missed state registrations. Our professional tax slabs across India provides a starting comparison.
Is Karnataka professional tax deductible in income tax?
State professional tax and central income tax are different obligations. For salary income under the old income-tax regime, tax on employment paid by the employee is generally deductible under the corresponding income-tax provision (historically Section 16(iii) of the Income-tax Act, 1961). Under the new regime, that particular salary deduction is generally not available. This does not change the employer's Karnataka PT obligation.
Compare regimes for the applicable income-tax year using official Income Tax Department salary-deduction guidance Official ↗, not merely a PT calculator. You can also review TaxQue's salary calculator.
Common mistakes that create PT notices or payroll differences
- Missing February's ₹300: Payroll keeps ₹200 and underpays the extra ₹100 per liable worker.
- Misreading the threshold: A worker paid ₹25,000 exactly is placed in the nil band, even though that amount is included.
- Treating an annual enrolment payment as payroll tax: The employer's EC does not offset employee deductions under RC.
- Applying the 2026 EC return change to employer RC: The new deemed-return provision is not a general waiver of monthly employer statements.
- Forgetting the FY 2026–27 deadline extension: Repeating the routine date without noting the specific 2026 order makes the article—and potentially compliance advice—outdated.
- Incorrectly treating a bonus or arrears month: The statutory definitions and allocation rules must be checked before deciding whether a salary band changed.
- Double payment after portal trouble: A failed screen does not necessarily mean the bank transaction failed. Verify payment status first.
- Assuming all remote workers follow the registered-office state: The location where services are performed is relevant to the state-law analysis.
Monthly payroll and annual EC checklist
- ○ Confirm which employees fall in the taxable band and retain the calculation.
- ○ Review employee exemption documents and effective dates.
- ○ Confirm the February rate is ₹300, not ₹200 or ₹500.
- ○ File the employer statement and remit PT by the applicable next-month deadline.
- ○ Save Form 5-A, payment receipts and monthly payroll reconciliation.
- ○ Check whether the entity itself requires EC and which schedule entry applies.
- ○ Apply the correct annual EC payment deadline, including specific amendments or extensions.
- ○ Confirm the 2026 EC deemed-return provision without overlooking separate employer obligations.
Where to get official help
For rates, exemptions, return formats and portal changes, rely on the Karnataka Commercial Taxes Department , the employer FAQ and the enrolment FAQ . TaxQue's professional tax filing service can assist with registration, payroll reconciliation, returns and compliance reviews if those services are applicable to your business.
Explore professional tax filing support
Official sources used for this guide
- Karnataka PT Act and schedule — taxable salary band and covered enrolment categories.
- Karnataka Act 33 of 2025 — ₹300 February PT amendment.
- Karnataka employer PT FAQ — registration, payroll return, payment and work-location guidance.
- Karnataka EC FAQ — enrolment, e-payment and digital certificate verification.
- Karnataka Act 22 of 2026 — deemed annual return for enrolled persons who have paid tax.
- Removal of Difficulties Order (01/2026) — one-time FY 2026–27 EC deadline adjustment.
- 1 April 2026 EC exemption documentation notification — specific categories and supporting documents.
Last reviewed: 18 October 2026. This guide explains the published rules generally. For a disputed exemption, salary component or missed due date, verify the exact notification and facts before filing.
