🇮🇳 India · FY 2025-26

Kerala PT ₹208/mo HRA40%

Kerala Take-Home & Professional Tax.

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Quick context

Kerala levies Professional Tax of ₹208/month (~₹2496/year) on income above the slab threshold. Kerala cities qualify for 40% HRA exemption (tier-2 status under Section 10(13A)). Use the calculator below to compare Old vs New regime for your salary.

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India Income Tax Calculator, Kerala

FY 2025-26

Annual Gross Income

₹

₹15.00 L per year

Age Group

Professional Tax (Kerala)

₹208/mo · ₹2496/yr

Old Regime deductions (only used if Old Regime is selected)+ Toggle

Section 80C (max ₹1.5L)

Section 80D Medical (max ₹1L)

HRA Exemption (yearly)

Home Loan Interest 24(b) (max ₹2L)

NPS Extra 80CCD(1B) (max ₹50K)

Old Regime

₹1,30,261

Taxable: ₹10.43 L

Deductions: ₹4.57 L

✓ Better

New Regime (default)

₹97,111

Taxable: ₹14.23 L

Deductions: ₹77,496 (auto)

💡 Recommendation

The New Regime saves you ₹33,150 in tax this year. New regime wins. You don't have enough deductions to beat the default lower slabs.

✨ Live · FY 2025-26 (AY 2026-27) slabs · Includes 4% cess and surcharge · Not legal/tax advice. Consult a CA for filings.

About Kerala

Kerala economic profile.

Capital

Thiruvananthapuram

Avg Mid-Career Salary

₹11.0L

per year

Cost of Living

vs Mumbai = 100

Market overview

Kerala has India's highest human development index but mid-tier industrial output. The state's economy is heavily remittance-dependent (Gulf earnings ~30% of GSDP). Technopark (Thiruvananthapuram) and Infopark (Kochi) are the major IT clusters. Kerala has India's highest literacy rate and healthcare access.

Top industries

Remittances & BankingTourismIT (Technopark, Infopark)Spices & AgricultureHealthcare

Kerala-specific tax notes

Kerala uses half-yearly PT collection (like Tamil Nadu): ₹1,250 in September and March. Cochin and Trivandrum are HRA tier-2 (40% exemption). The state has zero state-level income tax additions but mandates higher minimum wages than most states.

Professional Tax slab

Kerala PT: Half-yearly slabs. ₹1,250 every 6 months for income above ₹50,001/half-year. Maximum ₹2,500/year.

❓ Kerala FAQ

Common questions.

Why are Kerala IT salaries lower than other Indian states?

Kerala salaries run 20-30% below Bangalore for equivalent roles. Reasons: smaller IT employer base (Technopark + Infopark vs Electronic City + Whitefield + ORR), more locally-oriented economy (remittance + tourism), and lower commercial real estate density. Cost of living offset is significant. Kochi/Trivandrum rents run 40-50% of Bangalore.

How do Gulf remittances affect Kerala's tax landscape?

Personal income tax: NRI Kerala residents face Indian tax rates if Indian resident (180+ days). True non-residents are not taxed in India on foreign income. This creates a unique Kerala tax planning ecosystem. Many families optimize between India-based salary income and Gulf-based NRI status. Most middle-class Kerala families have at least one NRI earner.

Is the Kerala Professional Tax different in its mechanics?

Kerala (like Tamil Nadu) collects PT half-yearly (₹1,250 in September, ₹1,250 in March) rather than monthly. The annual total matches the ₹2,500 cap. This affects cash-flow timing but not total burden. Most Kerala employers handle this automatically through payroll.

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