Kerala Professional Tax

 

PROFESSIONAL TAX – KERALA

Professional Tax is a local statutory levy ( under Municipality Act/ Panchayat Raj Act) applicable in Kerala to persons engaged in employment, profession, trade or calling, subject to the applicable provisions and income/salary slabs.

For Company Owners

A company employing staff in Kerala should check its Professional Tax registration/enrolment and employee deduction requirements with the concerned Municipality, Corporation or Grama Panchayat.

• The number of employees does not by itself determine exemption from Professional Tax compliance.

• Where employees fall within the applicable taxable salary slab, the prescribed Professional Tax should generally be deducted from salary and remitted to the concerned local authority.

• Professional Tax is generally assessed on a half-yearly basis.

• The company should maintain appropriate records and complete the applicable payment and return/statement requirements.

• Certain categories of persons may be exempt under the applicable Kerala provisions.

Important: Professional Tax is separate from Income Tax, GST, EPF and ESI. Therefore, even a small company should verify its Professional Tax obligations based on its location, employees and nature of business.

As of FY 2026–27, Kerala Professional Tax is generally levied half-yearly, based on income for the six-month period. The current revised slabs came into effect from 1 October 2024. (Kerala State Archives Directorate)

Kerala Professional Tax – Current Rates

Half-yearly income	Professional Tax / half-year
Up to ₹11,999	Nil
₹12,000 – ₹17,999	₹120
₹18,000 – ₹29,999	₹180
₹30,000 – ₹44,999	₹300
₹45,000 – ₹59,999	₹450
₹60,000 – ₹74,999	₹600
₹75,000 – ₹99,999	₹750
₹1,00,000 – ₹1,24,999	₹1,000
₹1,25,000 and above	₹1,250

Thus, the maximum Professional Tax is ₹2,500 per year (₹1,250 × 2). (Kerala Finance)

For employees

The calculation is based on the employee's aggregate income for the relevant half-year, rather than simply applying a monthly rate. The two periods are generally:

• April–September

• October–March

The employer deducts the applicable amount from the employee and remits it to the relevant Municipality, Corporation or Grama Panchayat. The Kerala Municipality Act specifically provides for half-yearly assessment. (Kerala Government Department of Law)

Example: If an employee earns ₹25,000 per month consistently, half-year income is ₹1,50,000. The applicable Professional Tax is therefore ₹1,250 for that half-year, or ₹2,500 annually.

If you want, a one-page Kerala Professional Tax note for company owners, including who must register, whether a company with only 2 employees needs registration, exemptions, employer obligations and due dates, can be prepared.

Earlier online we could do. But in Kerala now website is not working. We have to do manually.

Contact 8848853865 for all support on professional tax.