Karnataka Tax Guide | Updated August 2026

Karnataka Professional Tax 2026: Rates, Registration & Online Payment

Professional Tax in Karnataka continues under the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976. The law applies to specified salaried persons, employers, professionals, traders and other enrolled persons, subject to the statutory schedule and exemptions.

2026 legal update: Karnataka Act No. 22 of 2026 amended Section 10 with effect from 1 April 2026. An enrolled person who has paid the tax payable for a year is deemed to have furnished the return for that year. The Commissioner may also exempt specified classes of enrolled persons from furnishing returns subject to notified conditions.
Portal update: The Karnataka Commercial Taxes Department announced that its upgraded Professional Tax portal became operational from 1 July 2026. Use the current official Professional Tax portal rather than relying on old VAT-era e-payment screens.

Karnataka Professional Tax rates

The official rate schedule published by the Karnataka Commercial Taxes Department prescribes Professional Tax according to the class of person. Important commonly applicable entries include:

Class of personPublished rate
Salary or wage earners receiving ₹25,000 or more in a month ₹200 per month
Persons registered or liable to be registered under the Karnataka GST Act, 2017 ₹2,500 per annum
Specified self-employed professionals with more than two years' standing, including legal practitioners, consultants, chartered accountants, engineers and healthcare professionals ₹2,500 per annum
Specified businesses and establishments covered by the statutory Schedule Generally ₹2,500 per annum for the listed classes

Always check the latest statutory Schedule and notifications for the exact category applicable to you. Exemptions may apply to specified persons or circumstances.

Who is liable for Professional Tax?

The Act covers professions, trades, callings and employments listed in the Schedule. Liability can arise for employees through salary deduction, for employers who must deduct and remit tax, and for enrolled professionals, traders or other persons who pay tax directly.

Employees

Where an employee falls within a taxable salary or wage category, the employer is generally responsible for deducting Professional Tax and paying it to the State in accordance with the Act and Rules.

Employers and enrolled persons

Employers may require registration, while persons liable to pay tax directly generally require enrolment. The applicable registration, enrolment, return and payment obligations depend on the taxpayer's category.

How to pay Karnataka Professional Tax online

  1. Open the official Karnataka Professional Tax portal.
  2. Choose the relevant facility for enrolment/registration, payment, return or taxpayer services.
  3. Enter the Professional Tax registration or enrolment details requested by the portal.
  4. Select the applicable tax period and confirm the tax, interest, penalty or other amount, where applicable.
  5. Complete payment using an available authorised payment mode.
  6. Save or print the acknowledgement/challan generated by the portal for your records.

Open Professional Tax Portal

Note: Online interfaces can change. If the menu names or screens differ, follow the current options displayed on the official portal rather than an old screenshot or archived VAT-era guide.

Employer registration, deduction and payment

An employer responsible for paying salary or wages should determine whether employees fall within the taxable slab, deduct tax where required and comply with the registration, payment and return provisions applicable under the Act and Rules.

Persons who are independently liable under the Schedule should verify whether they require enrolment and whether annual payment applies to their class.

Karnataka Professional Tax Amendment Act, 2026

The Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2026 - Karnataka Act No. 22 of 2026 received the Governor's assent on 27 March 2026 and took effect from 1 April 2026.

The amendment inserted provisos in Section 10(1). In practical terms, an enrolled person who pays the Professional Tax payable for the year is deemed to have furnished the return for that year. It also authorises the Commissioner, by notification, to exempt a class of enrolled persons from furnishing a return subject to specified safeguards and conditions.

Frequently asked questions

Is Professional Tax still applicable in Karnataka in 2026?

Yes. Unlike several pre-GST State levies, Karnataka Professional Tax continues under the Karnataka Tax on Profession, Trades, Callings and Employments Act, 1976, as amended.

What is the Professional Tax for salaried employees?

The currently published Schedule states ₹200 per month for salary or wage earners whose salary or wage is ₹25,000 or more for a month.

What is the annual Professional Tax for many professionals and GST-registered persons?

The currently published Schedule specifies ₹2,500 per annum for several listed categories, including persons registered or liable to be registered under the Karnataka GST Act and specified self-employed professionals. Check the Schedule to ensure the category applies to you.

Do enrolled persons have to file a separate annual return after paying tax?

Under the 2026 amendment, an enrolled person who has paid the tax payable for the year is deemed to have furnished the return for that year, subject to the law and applicable notifications.

Last reviewed: 28 August 2026. This guide is for general information. Tax liability depends on the statutory category, period, exemptions and current notifications applicable to the taxpayer.