Professional Tax in Kerala — Rules & Rates 2026

Professional tax in Kerala is deducted monthly from salaries, with a maximum of ₹2,040 per year. Monthly: ₹20–₹208 in 8 slabs from ₹5,000/mo to above ₹20,000/mo. It applies to Salaried employees. Kerala deducts monthly; max ₹2,040/yr is lower than most states. Professional tax is fully deductible from gross salary under Section 16(iii) of the Income Tax Act.

Last updated: 2026-04-07

Professional Tax Rates & Rules — Kerala

Annual Maximum

₹2,040

Applicable To

Salaried employees

Slab Structure

Monthly: ₹20–₹208 in 8 slabs from ₹5,000/mo to above ₹20,000/mo

Notes

Kerala deducts monthly; max ₹2,040/yr is lower than most states

Professional Tax Calculator

Gross Monthly

₹1,00,000

Monthly Tax (est.)

₹20,000

Net Take-Home

₹80,000

Annual Breakdown

Annual CTC₹12,00,000
Estimated Tax (20%)- ₹2,40,000
Annual Take-Home₹9,60,000

This is an estimate using a flat 20% tax rate. Actual tax depends on your deductions (80C, HRA, etc.) and tax regime choice.

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Frequently Asked Questions

What is the professional tax rate in Kerala in 2026?+
In Kerala, the maximum professional tax is ₹2,040 per year. Slabs: Monthly: ₹20–₹208 in 8 slabs from ₹5,000/mo to above ₹20,000/mo. It applies to: Salaried employees. Kerala deducts monthly; max ₹2,040/yr is lower than most states.
How to pay professional tax in Kerala?+
Employers in Kerala are responsible for deducting professional tax from employees' salaries and depositing it with the state government. Self-employed individuals must register and pay directly. Payment is made through the Kerala state tax department portal or designated banks. Failure to deduct/deposit attracts penalties.
Is professional tax deductible from income tax in Kerala?+
Yes. Professional tax paid in Kerala (up to ₹2,040/yr) is fully deductible from gross salary under Section 16(iii) of the Income Tax Act, 1961. This applies under both the old tax regime and the new tax regime. The deduction is available for tax year 2025-26 (Assessment Year 2026-27).

More Calculators for Kerala

Professional Tax in Other States

Disclaimer: The rates, rules, and data shown for Kerala are approximate and for informational purposes only. Tax laws, stamp duty rates, and government regulations change frequently. Always verify current rates with the official Kerala government portal or a qualified professional before making financial or legal decisions. CalcCrack is not responsible for any decisions made based on this information. Last updated: April 2026.