Karnataka has changed how much Professional Tax employers deduct in February. The Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Act, 2025 came into force from 1 April 2025.
What changed
For salary or wage earners whose salary for a month is ₹25,000 or more, the schedule now reads:
- ₹200 a month, except February;
- ₹300 for February.
That raises the yearly total from ₹2,400 to ₹2,500 — the maximum any state can charge under the Constitution. The Bill's statement of objects says the change gives effect to the 2025-26 Budget proposal to increase the tax "from rupees 2400 to rupees 2500 per annum".
| Monthly salary | April–January | February | Year |
|---|---|---|---|
| Below ₹25,000 | Nil | Nil | Nil |
| ₹25,000 and above | ₹200 | ₹300 | ₹2,500 |
What employers should do
- Set Karnataka's February deduction to ₹300 in payroll for employees earning ₹25,000 or more.
- Check that February 2026 was deducted correctly, and correct any shortfall with the tax department's guidance.
- Remember Maharashtra follows the same pattern (₹200 a month, ₹300 in February) — see all states in our Professional Tax slabs guide.
In SetuWork, Professional Tax slabs include a separate February amount, so the ₹300 is deducted automatically once the slab is set.
Sources
- Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Bill, 2025 — PRS Legislative Research prsindia.org
Published 28 Sept 2026. This update is general information for HR and payroll teams, not legal or tax advice — confirm with the official source before acting on it.