Income Tax Calculator Sri Lanka 2024-25 β Sinhala / English
Calculate personal income tax in Sri Lanka. See how relief and progressive bands work with examples and verify your liability.
Sri Lanka
2024-25
Income tax payable
LKR 0
Net income (after tax)
LKR 1,000,000
Effective tax rate
0.00%
View the Sri Lanka tax slabs β
| Income range (LKR) | Rate |
|---|---|
| 0 β 500,000 | 6% |
| 500,000 β 1,000,000 | 12% |
| 1,000,000 β 1,500,000 | 18% |
| 1,500,000 β 2,000,000 | 24% |
| 2,000,000 β 2,500,000 | 30% |
| 2,500,000+ | 36% |
Sri Lanka: Income tax slabs per the Inland Revenue (Amendment) Act of Sri Lanka. First LKR 1.2M of annual personal income is tax-free; the slabs above apply to income beyond that threshold.
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How Sri Lanka's Income Tax Relief and Bands Work
Sri Lanka's personal income tax system applies in two distinct steps. First, a personal relief of LKR 1,200,000 is deducted from your total annual income. If you earn LKR 1,200,000 or less in a tax year, you owe no income tax. Once your income exceeds this relief threshold, the remainder is taxed using a progressive ladder of six bands that climb steeply.
The Tax Ladder Climbs to 36% in Narrow Steps
Sri Lanka's tax structure is notably steep because each band spans only LKR 500,000. After the personal relief is subtracted, this remainder is taxed in six fixed-width bands, each at a progressively higher rate. This narrow band width means you reach the highest marginal rate relatively quickly compared to many countries.
| Taxable Income (After Relief) | Tax Rate |
|---|---|
| LKR 0 to 500,000 | 6% |
| LKR 500,001 to 1,000,000 | 12% |
| LKR 1,000,001 to 1,500,000 | 18% |
| LKR 1,500,001 to 2,000,000 | 24% |
| LKR 2,000,001 to 2,500,000 | 30% |
| Above LKR 2,500,000 | 36% |
The top marginal rate of 36% applies once your post-relief taxable income exceeds LKR 2,500,000. In terms of gross income, you reach this rate at LKR 3,700,000 annually (1,200,000 relief plus 2,500,000 taxable remainder). That is a comparatively modest income at which to meet a top marginal rate, and it is the practical consequence of having only five rungs before the ceiling: the ladder runs out quickly.
Worked Example: LKR 3,000,000 Gross Annual Income
To illustrate, suppose your gross annual income is LKR 3,000,000. Calculate as follows:
- Subtract the personal relief: 3,000,000 β 1,200,000 = LKR 1,800,000 taxable
- Apply the tax bands to this taxable amount:
- First LKR 500,000 at 6% = LKR 30,000
- Next LKR 500,000 at 12% = LKR 60,000
- Next LKR 500,000 at 18% = LKR 90,000
- Remaining LKR 300,000 at 24% = LKR 72,000
- Total tax due: LKR 252,000
This represents an effective tax rate of 8.4% on the gross income of LKR 3,000,000.
What This Calculator Does Not Include
This calculator applies the standard income tax bands and personal relief. It does not account for APIT (Advance Personal Income Tax) withheld by employers, terminal benefits, or the separate taxation of investment income. Always verify your liability with the Inland Revenue Department or a qualified tax professional.
See also the Salary Calculator for Sri Lanka and the VAT Calculator for Sri Lanka.
How to use the Income Tax Calculator Sri Lanka π±π°
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- 1Open the tool. Scroll up to the Income Tax Calculator Sri Lanka π±π° above β it loads instantly in your browser, no install needed.
- 2Enter your values. The fields come pre-filled with realistic defaults so you can see how it works β replace them with your own numbers.
- 3Read the result. The output updates instantly. Copy or share it β nothing is uploaded to a server, everything stays on your device.
Frequently asked questions
Common questions about the Income Tax Calculator Sri Lanka π±π°.
What is the annual tax-free allowance for personal income in Sri Lanka?
The personal income tax relief in Sri Lanka is LKR 1,200,000 per year. If your annual income is LKR 1,200,000 or less, you owe no income tax. Once income exceeds this amount, the remainder is taxed using the progressive band system.
At what gross income do I start paying the 36% top tax rate?
The 36% top rate applies to income exceeding LKR 2,500,000 after the personal relief is deducted. In gross terms, you reach this rate at LKR 3,700,000 annually. This comparatively modest gross income for hitting the top rate reflects the narrow tax bands in Sri Lanka.
How are the tax bands applied after the relief?
After subtracting the LKR 1,200,000 personal relief, the remaining taxable income is divided into six bands of LKR 500,000 each, taxed at 6%, 12%, 18%, 24%, 30%, and 36% respectively. Tax is calculated by applying the rate to each band portionβyou do not pay the top rate on all income.
What is not included in this calculator?
This calculator does not model APIT (Advance Personal Income Tax) withheld by employers, terminal benefits, or separate investment income taxation. Confirm all figures with the Inland Revenue Department or a qualified tax professional before filing.
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