Professional tax in Kerala: slabs, rules and deadlines for 2026
Kerala, like Tamil Nadu, does not run professional tax through a state commercial-tax department at all. It is a local body levy, collected half-yearly by the corporation, municipality or panchayat in whose area you work — which is why Kerala has the longest slab table in the country.
| Monthly salary | Professional tax |
|---|---|
| Up to ₹1,999 / month | Nil |
| ₹2,000 – ₹2,999 / month | ₹20/month |
| ₹3,000 – ₹4,999 / month | ₹30/month |
| ₹5,000 – ₹7,499 / month | ₹50/month |
| ₹7,500 – ₹9,999 / month | ₹75/month |
| ₹10,000 – ₹12,499 / month | ₹100/month |
| ₹12,500 – ₹16,666 / month | ₹125/month |
| ₹16,667 – ₹20,833 / month | ₹166/month |
| Above ₹20,833 / month | ₹208/month |
Kerala levies PT half-yearly through local bodies (max ₹1,250 per half-year). Monthly figures shown are half-yearly amounts averaged over 6 months and can vary by panchayat/municipality.
The law that applies in Kerala
Professional tax in Kerala is levied under the Levied by local self-government institutions under the Kerala Municipality Act, 1994 and the Kerala Panchayat Raj Act, 1994, administered by the Municipal corporations, municipalities and grama panchayats. Article 276 of the Constitution caps what any state may charge a person under this head at ₹2,500 a year, which is why no slab anywhere in India exceeds that figure.
Who must register in Kerala
Employers register with the local self-government institution covering the establishment. An employer operating in Kochi, Thiruvananthapuram and a rural panchayat deals with three separate authorities.
Self-employed professionals register with the local body where they practise.
When it must be paid
Collection is half-yearly, for the periods April–September and October–March. Payment is due after the close of each half; the precise date is set by the local body, so confirm it locally rather than relying on a statewide figure.
Nine bands, because the levy is local
Kerala's scale has nine steps, running from around ₹20 a month at the bottom to about ₹208 at the top — far more granular than any other state. The reason is historical: the amounts are set in half-yearly terms by local bodies under the municipal and panchayat legislation, and the fine gradation reflects a levy designed for a wide range of local trades and callings, not just salaried employment.
The statutory maximum remains ₹1,250 per half-year, or ₹2,500 a year. As with Tamil Nadu, the monthly figures shown here are the half-yearly amount divided by six, and can vary by a small margin between one panchayat and another.
Who is exempt in Kerala
- Persons earning below the lowest notified band, currently around ₹2,000 a month.
- Exemptions notified by the individual local body.
- Standard relief for persons with disabilities.
If you pay late
Local bodies apply their own interest and penalty provisions for late payment, and recovery is pursued by the local authority.
How it affects your income tax
Professional tax paid is fully deductible from salary income under Section 16(iii) of the Income-tax Act, in both the old and the new regime. Your employer normally accounts for it when computing TDS, so it reduces taxable salary rather than being claimed separately. If you are enrolled and pay directly, keep the challans — the deduction is still available to you.
On a payslip the line usually reads "PT", "Prof. Tax" or "Professional Tax", and sits with provident fund and income tax under deductions. Our free salary slip generator includes it automatically for Kerala.
Common questions about professional tax in Kerala
Is professional tax in Kerala paid monthly?
No. Kerala collects half-yearly, for April–September and October–March. Payslips usually show a monthly figure that is the half-yearly amount divided by six.
Who levies professional tax in Kerala?
Local self-government institutions — municipal corporations, municipalities and grama panchayats — under the Kerala Municipality Act and Panchayat Raj Act, not a state commercial-tax department.
What is the maximum in Kerala?
₹1,250 per half-year, so ₹2,500 a year.
Why does Kerala have so many slabs?
Because the levy is set locally and historically covered a broad range of trades and callings, the scale is graded far more finely than the two or three bands most states use.
Professional tax in other states
Slabs, thresholds and filing cycles differ substantially between states. If you employ people in more than one, you will generally need a registration in each.
The maths behind this calculator is open source and tested — try it in the interactive reference, where the edge cases most calculators get wrong are worked through with real numbers, or read the source on GitHub.