Free Tool
Sri LankaTax Calculator 2026/27
Calculate your income tax liability instantly using the latest APIT rates and IRD tax slabs. Free, accurate, and updated for the 2026/27 assessment year.
Income Tax Calculator
Max LKR 1,200,000 or 1/3 of assessable income
Sri Lanka Income Tax Rates 2025/26
| Taxable Income Slab | Rate |
|---|---|
| First LKR 500,000 | 6% |
| Next LKR 500,000 | 12% |
| Next LKR 500,000 | 18% |
| Next LKR 500,000 | 24% |
| Next LKR 500,000 | 30% |
| Balance | 36% |
Tax-free threshold: LKR 1,200,000 per annum (LKR 100,000/month)
Understanding Your Sri Lanka Income Tax (APIT) for 2026/2027
Calculating your personal or corporate income tax in Sri Lanka can be confusing. Our free APIT (Advance Personal Income Tax) calculator uses the latest Inland Revenue Department (IRD) tax slabs to give you an instant estimate of your monthly tax deductions and net take-home pay.
Frequently Asked Questions About Sri Lanka Income Tax
What is the tax-free allowance in Sri Lanka for 2026?
Currently, the personal tax-free allowance in Sri Lanka is LKR 1.2 Million per year (LKR 100,000 per month). If your total earnings fall below this threshold, you are not liable to pay Advance Personal Income Tax (APIT).
How are the APIT tax slabs structured?
For income exceeding the LKR 1.2M tax-free limit, Sri Lanka applies a progressive tax rate. The next slabs of LKR 500,000 are taxed progressively at 6%, 12%, 18%, 24%, and 30%, and any balance exceeding that is taxed at the highest bracket of 36%.
Do freelancers and IT exporters pay the same tax?
Not always. Depending on your business structure and whether your income is generated in foreign currency, you may qualify for specific IRD tax exemptions. Try our IT Tax Exemption Checker to find out if you qualify.
Can I legally reduce my tax liability?
Yes. Proper corporate structuring, expense tracking, and registering as a PVT LTD company can significantly optimize your tax liabilities compared to operating as an individual. Qualifying payments such as donations and approved investments also reduce your assessable income.
Stop Overpaying the IRD.
Is your calculated tax bill higher than expected? Jaffna Business Advisory connects you with elite, vetted Chartered Accountants who specialize in legal tax optimization, APIT filing, and corporate restructuring.
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