Tools · Tax calculators

Sri Lankan tax, quickly counted.

Free calculators for the taxes that touch Sri Lankan salaries and businesses most often. Numbers refreshed the moment a new budget lands.

01 · Context

How Sri Lanka's income tax stack actually works.

If you earn a salary in Sri Lanka, the tax bill you actually see is the result of several separate rules stacked on top of each other. APIT (formerly PAYE) deducts personal income tax progressively from your monthly pay. Withholding tax removes a slice at source from interest, dividends, rent, and service payments. And when a job ends, a different concessionary regime applies to your gratuity, provident-fund lump sum, and any compensation for loss of employment.

These calculators cover the three most common, updated to the 2025/26 Year of Assessment rates published by the IRD.

APIT (Advance Personal Income Tax) is the successor to PAYE. Employers deduct it monthly under the progressive-rate table. For 2025/26 the tax-free threshold sits at LKR 150,000 per month and the top marginal rate is 36% on income above LKR 4.1 million per year. The APIT calculator handles employment income, rental income, business income, and foreign service income, netting off any prior WHT or APIT credits.

Withholding tax (WHT) applies whenever a Sri Lankan payer sends money to a supplier of goods or services. From 2025/26 the standard rate on bank interest and dividends is 10%, service fees 5%, and cross-border payments carry DTAA-aligned rates. The WHT calculator is aimed at both the payee (checking what should be deducted) and the payer (calculating what to remit).

Terminal benefits (retirement gratuities, EPF or ETF lump sums, and compensation for loss of employment) sit under a separate concessionary regime. The first LKR 10 million paid over a service period longer than 20 years is tax-free; amounts above are taxed at a flat 6%, or 12% for shorter service. The terminal benefits calculator applies the correct band based on years of service and payment type.

VAT, SSCL, and corporate income tax calculators are on the way. All three will follow the same principle: enter the numbers, get the answer, no sign-up.

01 · Personal

Local income tax (APIT)

Progressive-rate personal income tax — salary, rental, business, and foreign service income, with WHT and APIT credits. Y/A 2025/26 and 2024/25.

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02 · Withholding

Withholding tax (WHT)

Tax withheld at source on interest, dividends, service fees, and rent.

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03 · Retirement

Terminal benefits

Tax on retirement gratuities, provident fund lump sums, and compensation-for-loss-of-employment.

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04 · ConsumptionComing soon

Value added tax (VAT)

Standard 18% VAT computation with input/output offset. Coming soon.

05 · SocialComing soon

Social security contribution levy

SSCL calculation for VAT-registered businesses. Coming soon.

06 · CorporateComing soon

Corporate income tax

Standard 30% + concessionary rates by sector. Coming soon.

A note on these tools. (IMPORTANT) These calculators are estimation tools only. They are not connected to the Inland Revenue Department's systems, do not produce filed-return figures, and should not be treated as your final tax liability. Use them to size up personal or business tax exposure — then talk to us when you're ready to file.

02 · Questions

Sri Lanka tax, in plain answers.

The questions we get asked most, answered against the 2025/26 IRD rules.

What is APIT and how does it work?

APIT (Advance Personal Income Tax) is Sri Lanka's employer-deducted personal income tax. It replaced PAYE in 2023. Your employer applies the progressive-rate table each month against your salary and you receive a credit for the total deducted at year-end. Anyone earning under LKR 150,000 per month owes no APIT. Above that, six bands apply, topping out at 36% on income above LKR 4.1 million per year. Try our APIT calculator to see the exact monthly deduction on your salary.

When is my personal income tax return due for YA 2025/26?

The Year of Assessment 2025/26 covers 1 April 2025 to 31 March 2026. Two deadlines fall this year: 30 September 2026 for the final tax payment, and 30 November 2026 for the annual return. Miss either and penalties start at 10 to 20 percent plus 1.5 percent monthly interest. See our personal tax deadlines guide for the full filing timeline.

How much withholding tax should I deduct from a service payment?

Under the 2025/26 schedule, standard WHT on service fees paid to a Sri Lankan resident is 5%. Bank interest and dividends are withheld at 10%. Rent paid to a non-Sri Lankan owner is 14%. Cross-border payments follow the applicable Double Tax Avoidance Agreement, which is usually 5 to 15 percent. The WHT calculator applies the correct rate once you pick the payment type.

How is a retirement gratuity taxed in Sri Lanka?

Under the concessionary regime, the first LKR 10,000,000 of gratuity paid after 20 or more years of service is tax-free. Amounts above the exempt tier are taxed at 6%. If the service period is under 20 years, the concessionary rate is 12% and the exempt tier is proportionally smaller. Our terminal benefits calculator handles the arithmetic, including the years-of-service tier.

Do I still need to file a return if my employer already deducts APIT?

In most cases, yes. APIT is only a monthly estimate against your annual liability. If you have any other income (rental, business share, freelance earnings, foreign income, or bank interest above LKR 1 million per year), you must file a return by 30 November 2026 to reconcile. Employees whose sole income is one salary below LKR 1.8 million per year and who have no rental or investment income can be exempt from filing, but should still hold documentation showing this. Our step-by-step filing guide walks through the process.

How is foreign service income taxed under the 2025/26 rules?

The blanket exemption for foreign service income ended on 31 March 2025. From YA 2025/26, foreign salaries brought into Sri Lanka are taxed at a 15% concessionary rate for personal services rendered abroad and 30% for other foreign income. See our foreign service income article for the full breakdown and worked examples.

Is the calculator's number what I actually owe?

The calculator gives a technically correct answer for the inputs you enter. It does not factor in the credits, reliefs, and prior-year balances that appear on your final IRD assessment. Treat it as an estimate. For actual filing, we handle the full return end-to-end, including verifying your APIT credits with the IRD portal. Talk to a consultant.

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