Sri Lanka Income Tax
Calculator
Calculate your monthly APIT (Advance Personal Income Tax) deduction and net take-home salary using the latest IRD tax brackets.
APIT / PAYE Calculator
Enter your monthly gross salary
Deduct EPF Employee Contribution (8%)
Employee EPF (8% of gross) is deductible from taxable income per IRD rules. Toggle off if your employer already excludes it.
APIT Tax Brackets — Y/A 2025/26
Personal relief: LKR 1,800,000/year · EPF (8%) deductible from taxable income
| Annual Taxable Income Slab | Tax Rate |
|---|---|
| Up to LKR 1,800,000 (Personal Relief) | 0% (Exempt) |
| First LKR 1,000,000 of taxable income | 6% |
| Next LKR 500,000 | 18% |
| Next LKR 500,000 | 24% |
| Next LKR 500,000 | 30% |
| Balance above LKR 2,500,000 | 36% |
How to Calculate Your APIT Tax in Sri Lanka (2025/26)
Under the Inland Revenue (Amendment) Act No. 02 of 2025, all employers in Sri Lanka are required to deduct Advance Personal Income Tax (APIT) from employee salaries monthly. This calculator automates the full IRD formula — deducting EPF, applying the personal relief threshold, and running your income through each progressive bracket — so you get an accurate take-home figure in seconds.
Step-by-Step: How Your APIT Is Calculated
- Start with gross monthly salary — your total pay before any deductions
- Deduct EPF employee contribution (8%) — allowable as a deduction per IRD rules
- Multiply by 12 to get your annual assessable income
- Deduct personal relief of LKR 1,800,000 — income below this is fully exempt
- Apply progressive APIT slabs (6% → 18% → 24% → 30% → 36%)
- Divide annual tax by 12 to get your monthly APIT deduction
EPF & ETF: What Employees Need to Know
In addition to APIT, Sri Lankan employees contribute to the Employees' Provident Fund (EPF) and benefit from employer-paid Employees' Trust Fund (ETF) contributions:
- Employee EPF: 8% of gross salary — deducted from pay and deductible for APIT
- Employer EPF: 12% of gross salary — paid by employer, not deducted from your salary
- Employer ETF: 3% of gross salary — paid by employer
Frequently Asked Questions
Who needs to pay APIT in Sri Lanka for 2025/26?
Any resident employee whose annual assessable income (gross minus EPF 8%) exceeds LKR 1,800,000 is liable for APIT. This is equivalent to a gross monthly salary of approximately LKR 163,050 or more.
Are bonuses and lump-sum payments taxed differently?
Yes. Regular monthly employment income uses the APIT Table 01 brackets. Lump-sum payments such as gratuity, EPF/ETF retirement withdrawals, and severance pay are taxed separately using IRD Tables 02 and 03. Use our Sri Lanka Lump Sum Tax Calculator for those scenarios.
Can I claim a refund if my employer over-deducts APIT?
Yes. File your annual income tax return with the IRD and claim a refund for any excess APIT deducted. Keep your APIT/T10 certificate (issued by your employer annually) as proof of deductions.
Does this apply to self-employed individuals?
No. This tool covers employment income (APIT) only. Self-employed individuals file income tax returns directly with the IRD under a separate assessment process. If you run a business in Sri Lanka and need a stronger digital presence to grow your revenue, explore web design services by Lakion or learn how SEO can bring you more customers.
Disclaimer: This tool provides estimated calculations for general informational purposes only, based on the Inland Revenue (Amendment) Act No. 02 of 2025 (Y/A 2025/26). Tax laws are subject to change. Consult a certified tax advisor or the official IRD Sri Lanka website for authoritative guidance. Lakion is a digital agency, not a tax firm.