Sri Lanka Income Tax Calculator
Calculate Sri Lanka personal income tax (APIT) for the 2025-26 year of assessment with a full bracket-by-bracket breakdown, the LKR 1,800,000 personal relief, EPF and ETF contributions, and net monthly take-home pay. Updated for the Inland Revenue (Amendment) Act effective 1 April 2025.
Regional Rule Context
Sri Lanka Rates and Rules
Personal relief LKR 1,800,000/year. Slabs above relief: 6% on next 1,000,000, 18% on next 500,000, 24% on next 500,000, 30% on next 500,000, 36% on balance. EPF: employee 8%, employer 12%. ETF: employer 3% (no employee share). Effective 1 April 2025 under the Inland Revenue (Amendment) Act.
Enter Values
Enter your gross salary before tax and EPF
Rental, interest, dividends, business, or consultation income. Use the same period as your salary. Leave 0 if you have only a salary
Applies to both salary and other income above
EPF and ETF apply to the salary portion only, never to other income
Result
Enter values above and click Calculate to see your result.
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Calculate Sri Lanka personal income tax (APIT) for the Y/A 2025-26 (1 April 2025 to 31 March 2026). Personal relief was raised from LKR 1,200,000 to LKR 1,800,000 under the Inland Revenue (Amendment) Act effective 1 April 2025. Slabs above relief: 6% on the next LKR 1,000,000, then 18%, 24%, 30%, 36% on subsequent LKR 500,000 slabs. APIT is the monthly withholding system that replaced PAYE in 2020. Employees additionally contribute 8% to EPF, while employers contribute 12% EPF and 3% ETF on top of salary. Optional Other Income field handles rental, interest, dividends, business, or consultation income; tax brackets apply to the combined total but EPF stays on salary only.
Disclaimer: This calculator uses publicly available rules effective as of Apr 1, 2025 (version 1.0). Results are for informational purposes only. Always verify with official sources or a qualified professional. Last reviewed: May 7, 2026.
Formula
Sri Lanka uses a progressive personal income tax. The first LKR 1,800,000 of annual income is fully tax-free under the personal relief. Income above the relief is taxed in slabs at 6%, 18%, 24%, 30%, and 36%. Employees separately contribute 8% to EPF, while employers add 12% EPF and 3% ETF on top of the salary.
Sri Lanka Personal Income Tax Slabs (Y/A 2025-26)
Income tax slabs effective 1 April 2025 under the Inland Revenue (Amendment) Act. The first LKR 1,800,000 of annual income is fully relieved.
| Slab | Annual Income Range (LKR) | Tax Rate | Tax on Top of Slab |
|---|---|---|---|
| Personal Relief | 0 to 1,800,000 | 0% | 0 |
| 1st | 1,800,001 to 2,800,000 | 6% | 60,000 |
| 2nd | 2,800,001 to 3,300,000 | 18% | 150,000 |
| 3rd | 3,300,001 to 3,800,000 | 24% | 270,000 |
| 4th | 3,800,001 to 4,300,000 | 30% | 420,000 |
| 5th | Above 4,300,000 | 36% | Varies |
Note: Rates apply to the year of assessment 1 April 2025 to 31 March 2026. EPF (8% employee, 12% employer) and ETF (3% employer) are separate from income tax. For reference only; consult the Inland Revenue Department or a chartered accountant for personal advice.
Sri Lanka FAQs
What are the 2025-26 Sri Lanka income tax slabs?
Personal relief LKR 1,800,000 at 0%. Above relief: 6% on the next LKR 1,000,000, 18% on the next LKR 500,000, 24% on the next LKR 500,000, 30% on the next LKR 500,000, and 36% on income above LKR 4,300,000 per year. Effective 1 April 2025 under the Inland Revenue (Amendment) Act.
How much tax do I pay on LKR 300,000 per month?
On LKR 300,000 per month (LKR 3,600,000 per year), taxable income after the LKR 1,800,000 relief is LKR 1,800,000. Tax is LKR 60,000 (6% slab) plus LKR 90,000 (18% slab) plus LKR 72,000 (24% slab on the remaining LKR 300,000) for a total of LKR 222,000 per year, or LKR 18,500 per month.
When does the LKR 1.8M personal relief save me from paying tax?
If your annual gross income (salary plus any other income) is LKR 1,800,000 or less, you pay zero income tax. That works out to LKR 150,000 per month for salaried earners. The relief replaced the previous LKR 1,200,000 threshold from 1 April 2025.
Is APIT the same as PAYE?
APIT (Advance Personal Income Tax) replaced PAYE in 2020 and uses the same progressive bracket structure as the annual income tax. Your employer deducts APIT each month and remits it to the Inland Revenue Department. Most employees still need to file an annual tax return to reconcile.
Do I add EPF to my taxable income?
No. Income tax is calculated on your gross salary before EPF. The 8% employee EPF contribution is then deducted from your post-tax pay separately. Employer EPF (12%) and ETF (3%) are not part of your taxable income, they are paid on top by the employer.
I have rental and interest income. Where do I add it?
Use the Other Income field. The IRD treats your total assessable income as one number, so combine rental, business profit, consultation fees, untaxed dividends, and similar sources into one figure. Use the same period (monthly or annually) you chose for salary. Personal relief and slabs then apply once to the combined total. EPF still applies only to your salary.
Are dividends with 15% withholding tax taxable again?
No. Dividends that have already had 15% Withholding Tax deducted at source are treated as final tax and are excluded from your assessable income. Do not add them to Other Income. Only include other dividends, interest without final WHT, rental, business profit, and similar untaxed income.
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