Annual Income Tax Calculator for Sri Lanka - 2025/26 Bands
Enter a year of employment income to see the income tax, the effective rate and how much falls in each band.
Maintained by Hirantha Sandaruwan Lakshan. Rules checked 13 October 2026 against Inland Revenue Department notice PN/IT/2025-01 and 3 more sources.
About this tool
It uses the rates in force from the 2025/26 year of assessment: the first Rs. 1,800,000 is relieved, then 6 per cent on the next Rs. 1,000,000, then 18, 24 and 30 per cent on three bands of Rs. 500,000 and 36 per cent on the rest. It reads its bands from the net salary calculator's code, so the two always agree. Your figures never leave your browser.
How it works
From the 2025/26 year of assessment the Inland Revenue (Amendment) Act, No. 2 of 2025 gives a personal relief of Rs. 1,800,000 to a resident individual. The Inland Revenue Department's notice PN/IT/2025-01 lists the rates on taxable income: 6 per cent on the first Rs. 1,000,000, 18 per cent on the next Rs. 500,000, 24 per cent on the next Rs. 500,000, 30 per cent on the next Rs. 500,000 and 36 per cent on the balance. Here the relief is treated as a band taxed at 0 per cent, so the tax bands start at Rs. 1,800,000 of income.
The calculator takes the part of each band that your income fills, multiplies it by the band's rate and adds the results. The effective rate is the total tax divided by all of your income. The rate on your next rupee is the rate of the band your top rupee sits in, which is higher than the effective rate once you pass the relief.
The bands are not typed in again. They are the monthly bands of the net salary calculator multiplied by twelve, and the tests check that the yearly tax equals twelve times that calculator's monthly APIT for the same income. If the relief or a rate changes in that one place, both tools change together.
This is an estimate for one resident individual with employment income only. It does not add other income, other reliefs, qualifying payments, non-cash benefits or the credit for arrears, and it does not deduct your EPF share before tax. Your employer's APIT deductions and your own return are what count.
Worked examples
Rs. 3,600,000 a year (Rs. 300,000 a month)
Rs. 1,800,000 is above the relief. 6 per cent of the first Rs. 1,000,000 is Rs. 60,000, 18 per cent of the next Rs. 500,000 is Rs. 90,000 and 24 per cent of the last Rs. 300,000 is Rs. 72,000. The tax is Rs. 222,000, an effective rate of 6.17 per cent, or Rs. 18,500 a month.
Rs. 2,400,000 a year (Rs. 200,000 a month)
Rs. 600,000 is above the relief and all of it is taxed at 6 per cent, so the tax is Rs. 36,000 a year, which is 1.5 per cent of income or Rs. 3,000 a month. The salary calculator shows the same Rs. 3,000 of APIT on Rs. 200,000.
Rs. 6,000,000 a year
The first four bands up to Rs. 4,300,000 add up to Rs. 420,000. The remaining Rs. 1,700,000 is taxed at 36 per cent, which is Rs. 612,000. The tax is Rs. 1,032,000, an effective rate of 17.2 per cent, or Rs. 86,000 a month.
Yearly income tax bands for a resident individual from the 2025/26 year of assessment
| Yearly income | Rate | Tax on a full band | Total tax at the top of the band |
|---|---|---|---|
| Up to Rs. 1,800,000 | 0% (personal relief) | Rs. 0 | Rs. 0 |
| Rs. 1,800,000 to Rs. 2,800,000 | 6% | Rs. 60,000 | Rs. 60,000 |
| Rs. 2,800,000 to Rs. 3,300,000 | 18% | Rs. 90,000 | Rs. 150,000 |
| Rs. 3,300,000 to Rs. 3,800,000 | 24% | Rs. 120,000 | Rs. 270,000 |
| Rs. 3,800,000 to Rs. 4,300,000 | 30% | Rs. 150,000 | Rs. 420,000 |
| Above Rs. 4,300,000 | 36% | No limit | Rs. 420,000 plus 36% of the excess |
Frequently asked questions
How much income tax do I pay on a yearly salary in Sri Lanka?
Nothing up to Rs. 1,800,000 a year. Above that, 6 per cent on the next Rs. 1,000,000, 18 per cent on the next Rs. 500,000, 24 per cent on the next Rs. 500,000, 30 per cent on the next Rs. 500,000 and 36 per cent on the rest. On Rs. 3,600,000 the tax is Rs. 222,000.
What is the tax-free amount?
From the 2025/26 year of assessment the personal relief is Rs. 1,800,000 a year, which is Rs. 150,000 a month, for a resident individual or a non-resident citizen, according to the Inland Revenue Department's notice PN/IT/2025-01.
Are these the rates for 2026/27?
They are the rates in force from the 2025/26 year of assessment, set by the Inland Revenue (Amendment) Act, No. 2 of 2025. I checked on 13 October 2026 and could not confirm any change to the relief or the bands for 2026/27, but I could not rule one out. The Inland Revenue (Amendment) Act, No. 11 of 2026 was certified on 3 June 2026. I read its text and a KPMG summary of it: it changes capital gains tax rates and many compliance rules, and it leaves the personal relief and the progressive rates as they were. A Budget measure or a new Inland Revenue Department notice could still apply to 2026/27. For payroll, use the Inland Revenue Department's current APIT tables.
What is the difference between the effective rate and the rate on my next rupee?
The effective rate is all of your tax divided by all of your income. The rate on your next rupee is the rate of the highest band you reach. On Rs. 3,600,000 the effective rate is 6.17 per cent but the next rupee is taxed at 24 per cent.
Is this the same as the APIT on my payslip?
APIT is the monthly deduction your employer makes from the Inland Revenue Department's tables. This tool works on the year, and the net salary calculator works on the month with the same bands divided by twelve, so they give the same tax. Your payslip is what counts, because it can include benefits, other reliefs or a different treatment of allowances.
Does the tax include EPF, bonuses or other income?
Enter all of your cash employment income for the year, including bonuses and overtime, and the tax is worked out on that total. The EPF share is not deducted before tax here. Other income such as rent or interest, and reliefs other than the personal relief, are not included.
Can I enter a monthly figure?
Yes. Choose Month and the tool multiplies by 12. If your pay changes during the year, add up the months and enter the yearly total instead.
Sources & references
Updated Oct 13, 2026