Sri Lanka APIT / PAYE Tax Tables
Every band and rate for the 2025/2026 and 2026/2027 years of assessment, shown both monthly and annually, with EPF and ETF alongside. Built to be printed or sent to payroll.
By Dr. Dulan DiasLast reviewed against IRD publications on
Sri Lanka income tax rates at a glance (2026/2027)
The first LKR 150,000 a month (LKR 1,800,000 a year) is tax-free. Income above that is taxed progressively at 6%, 18%, 24%, 30% and 36%, each rate applying only to the slice of income inside its band.
Separately, EPF takes 8% from your salary with 12% added by your employer, and ETF adds a further 3% paid entirely by the employer.
Year of assessment 2026/2027
1 Apr 2026 to 31 Mar 2027Personal relief LKR 1,800,000 a year (LKR 150,000 a month). Income at or below that is not taxed.
The Inland Revenue Department has not published separate APIT tables for 2026/27. The tables in force from 1 April 2025 apply, because the Commissioner General specified them “for every subsequent years of assessment unless other tables are specified for such subsequent years” (APIT tables index, 25 March 2025).
Annual taxable income
| Annual income (LKR) | Rate | Tax on this band |
|---|---|---|
| 0 to 1,800,000 | 0% | Nil |
| 1,800,000 to 2,800,000 | 6% | 60,000 |
| 2,800,000 to 3,300,000 | 18% | 90,000 |
| 3,300,000 to 3,800,000 | 24% | 120,000 |
| 3,800,000 to 4,300,000 | 30% | 150,000 |
| Above 4,300,000 | 36% | On the balance |
Monthly, as the IRD tables present it
Applied to monthly income after the LKR 150,000 relief.
| Monthly taxable income (LKR) | Rate |
|---|---|
| First 83,333.33 | 6% |
| Next 41,666.67 | 18% |
| Next 41,666.67 | 24% |
| Next 41,666.67 | 30% |
| Balance | 36% |
Table 01 as the IRD writes it
The same bands as a formula on the whole monthly salary, relief included. Multiply by the rate and subtract the fixed sum.
| Monthly regular profits (LKR) | Monthly APIT |
|---|---|
| Up to 150,000 | Relief from tax |
| 150,000 to 233,333 | 6% of monthly profits less 9,000 |
| 233,333 to 275,000 | 18% of monthly profits less 37,000 |
| 275,000 to 316,667 | 24% of monthly profits less 53,500 |
| 316,667 to 358,333 | 30% of monthly profits less 72,500 |
| Above 358,333 | 36% of monthly profits less 94,000 |
Year of assessment 2025/2026
1 Apr 2025 to 31 Mar 2026Personal relief LKR 1,800,000 a year (LKR 150,000 a month). Income at or below that is not taxed.
Annual taxable income
| Annual income (LKR) | Rate | Tax on this band |
|---|---|---|
| 0 to 1,800,000 | 0% | Nil |
| 1,800,000 to 2,800,000 | 6% | 60,000 |
| 2,800,000 to 3,300,000 | 18% | 90,000 |
| 3,300,000 to 3,800,000 | 24% | 120,000 |
| 3,800,000 to 4,300,000 | 30% | 150,000 |
| Above 4,300,000 | 36% | On the balance |
Monthly, as the IRD tables present it
Applied to monthly income after the LKR 150,000 relief.
| Monthly taxable income (LKR) | Rate |
|---|---|
| First 83,333.33 | 6% |
| Next 41,666.67 | 18% |
| Next 41,666.67 | 24% |
| Next 41,666.67 | 30% |
| Balance | 36% |
Table 01 as the IRD writes it
The same bands as a formula on the whole monthly salary, relief included. Multiply by the rate and subtract the fixed sum.
| Monthly regular profits (LKR) | Monthly APIT |
|---|---|
| Up to 150,000 | Relief from tax |
| 150,000 to 233,333 | 6% of monthly profits less 9,000 |
| 233,333 to 275,000 | 18% of monthly profits less 37,000 |
| 275,000 to 316,667 | 24% of monthly profits less 53,500 |
| 316,667 to 358,333 | 30% of monthly profits less 72,500 |
| Above 358,333 | 36% of monthly profits less 94,000 |
EPF and ETF rates
Calculated on gross earnings, not on taxable income. Personal relief does not apply.
| Contribution | Rate | Paid by |
|---|---|---|
| EPF, employee | 8% | You (deducted from your salary) |
| EPF, employer | 12% | Employer (on top of your salary) |
| ETF, employer | 3% | Employer (on top of your salary) |
Only the employee 8% reduces your take-home pay. The employer's 12% and 3% are a cost to the employer; counting them as deductions is the most common error in salary calculations. The EPF and ETF calculator works them out for any salary.
Total tax at each band threshold
The tables above give the marginal rate on each slice of income. This shows what that adds up to: the total tax owed by someone whose annual income lands exactly on each band ceiling, for 2026/2027.
| Annual gross | Monthly gross | Annual tax | Monthly tax | Effective rate |
|---|---|---|---|---|
| 2,800,000 | 233,333 | 60,000 | 5,000 | 2.1% |
| 3,300,000 | 275,000 | 150,000 | 12,500 | 4.5% |
| 3,800,000 | 316,667 | 270,000 | 22,500 | 7.1% |
| 4,300,000 | 358,333 | 420,000 | 35,000 | 9.8% |
Gross figures here assume all income is employment income with no other reliefs. The calculator works out any salary, not just these thresholds.
What is the APIT percentage in Sri Lanka?
There is no single percentage, which is why the question is harder to answer than it looks. APIT is progressive: rates run from 6% to 36%, and which one applies depends on how much of your income falls into each band.
Two different numbers get called “your tax rate”, and confusing them is the usual source of alarm:
- Marginal rate: the rate on your next rupee earned. This is the headline number, and the highest one that applies to you.
- Effective rate: total tax as a share of total salary. Always lower, because your first LKR 1,800,000 is untaxed and the bands beneath your top one are charged at lower rates.
Someone on LKR 275,000 a month has a marginal rate of 18% but an effective rate of only 4.5%. When someone says they are “in the 36% bracket”, they almost never pay 36% of their salary.
What changed on 1 April 2025
The Inland Revenue (Amendment) Act No. 2 of 2025 rewrote the table. If you are comparing against an older payslip, or against a calculator that has not been updated, this is why the numbers differ.
| What | Until 31 Mar 2025 | From 1 Apr 2025 |
|---|---|---|
| Personal relief | LKR 1,200,000 | LKR 1,800,000 |
| Monthly tax-free | LKR 100,000 | LKR 150,000 |
| First band width | LKR 500,000 at 6% | LKR 1,000,000 at 6% |
| 12% band | Applied | Removed |
| Rate progression | 6, 12, 18, 24, 30, 36% | 6, 18, 24, 30, 36% |
The net effect was a meaningful tax cut, and the biggest proportional saving lands in the middle of the range:
- LKR 150,000 a month: 3,500 → no tax (saving LKR 3,500 a month)
- LKR 200,000 a month: 10,500 → 3,000 (saving LKR 7,500 a month)
- LKR 300,000 a month: 35,000 → 18,500 (saving LKR 16,500 a month)
- LKR 500,000 a month: 104,000 → 86,000 (saving LKR 18,000 a month)
If a calculator still shows a 12% band, it is using the pre-2025 table and will overstate what you owe by roughly these amounts.
Previous years
Kept for reference, for checking an old payslip or an amended return. Do not use these for current payroll.
Year of assessment 2024/2025 (superseded)
Personal relief LKR 1,200,000 a year (LKR 100,000 a month).
All eight APIT tables, and which applies to you
Everything above is Table No. 01, the common case: a resident employee's regular monthly pay from their primary employment. The Inland Revenue Department publishes eight tables in force from 1 April 2025, because different payments and different employees are deducted differently.
- 01Regular monthly pay from your primary employment, for residents and for non-resident citizens. Calculator · IRD instructions
- 02Lump sums such as a bonus, leave encashment, salary arrears or shares under an employee share scheme. Calculator · IRD instructions
- 03Terminal benefits on leaving or retiring: gratuity, commuted pension, compensation for loss of office and ETF payouts. Calculator · IRD instructions
- 04All pay of non-resident employees who are not Sri Lankan citizens. No personal relief. IRD instructions
- 05Cumulative deduction for people who join or retire mid-year, or whose monthly pay is under Rs. 150,000 but whose cumulative pay passes Rs. 1,800,000 during the year. IRD instructions
- 06Tax-on-tax, where the employer pays the employee's tax instead of deducting it. IRD instructions
- 07Secondary employment, and anyone who has not given a primary employment declaration. IRD instructions
- 08Residents in Sri Lanka working for an employer wholly outside Sri Lanka, paid in foreign currency through a bank. You pay it yourself each month. Calculator · IRD instructions
If you hold two jobs, your second employer uses Table 07 and does not apply the personal relief again, because it has already been used against your primary salary. If your situation is not covered by a calculator here, the IRD's instructions for each table include worked examples, or ask your payroll team.
Using these tables for payroll
Two details cause most of the discrepancies between a payslip and a calculator:
- Annualise first, then divide. Tax is computed on annual income and divided by twelve, not computed on one month's pay. The two give different answers near a band boundary.
- Gross means everything. Taxable employment income includes allowances, overtime and the value of non-cash benefits, not just basic salary. A calculator fed only the basic figure will understate the deduction.
APIT deducted in a month is payable to the Inland Revenue Department by the 15th of the following month. Tax years run 1 April to 31 March, so a rate change announced in a budget normally takes effect at the start of a year of assessment rather than immediately.
Saving or printing these tables
This page is laid out to print cleanly. Use your browser's print dialog and choose “Save as PDF” if you need a copy to keep or send to payroll. Navigation and buttons are hidden in the printed version, leaving the tables and the rates. It is deliberately a live page rather than a PDF download, because a PDF goes stale the moment the rates change and there is no way to tell whoever downloaded it. This page is updated in place, and the 2026/2027 and 2025/2026 figures above are current as published by the Inland Revenue Department.
Sources
Every rate and rule on this page comes from the documents below, checked on 25 October 2026. Where they and this page differ, they are right.
- Advance Personal Income Tax TablesInland Revenue Department of Sri Lanka
- Advance Personal Income Tax (APIT) Tables, applicable with effect from 01.04.2025 (index)Inland Revenue Department of Sri Lanka, 25 March 2025
- Guideline for employers on deducting Advance Personal Income Tax (APIT) from employment income, SEC/2025/E/01Inland Revenue Department of Sri Lanka, 25 March 2025
- Tax Table No. 01: Monthly Tax Deductions from Regular Profits from Primary EmploymentInland Revenue Department of Sri Lanka
- Tax Table No. 02: Rates for the Deduction of Tax from Lump-sum PaymentsInland Revenue Department of Sri Lanka
- Tax Table No. 03: Rates for the Deduction of Tax from Once-and-for-all Payments (Terminal Benefits, All Employees)Inland Revenue Department of Sri Lanka
- Tax Table No. 04: Rates for the deduction of Tax from any Profits from Employment made to Non-resident Employees who are Non-citizens in Sri LankaInland Revenue Department of Sri Lanka
- Tax Table No. 05: Deduction of Tax on Cumulative Gains and Profits from EmploymentInland Revenue Department of Sri Lanka
- Tax Table No. 06: Tax-on-Tax RatesInland Revenue Department of Sri Lanka
- Tax Table No. 07: Rates for the Deduction of Tax from the Secondary EmploymentInland Revenue Department of Sri Lanka
- Tax Table No. 08: Rate for the deduction of tax from the employment income received from foreign employerInland Revenue Department of Sri Lanka
Questions about the APIT tables
- What is the tax-free threshold in Sri Lanka?
- LKR 150,000 a month, or LKR 1,800,000 a year. If your gross monthly salary from a single primary employment is at or below LKR 150,000, no APIT is deducted. This threshold rose from LKR 1,200,000 to LKR 1,800,000 a year on 1 April 2025 under the Inland Revenue (Amendment) Act No. 2 of 2025, and the 12% band was removed at the same time.
- What is the difference between PAYE and APIT?
- They are the same deduction. PAYE (Pay As You Earn) was renamed APIT (Advance Personal Income Tax) in 2020. Most employers, payslips and employees still say PAYE, and the Inland Revenue Department's own tables are titled APIT. Nothing about how it is calculated differs.
- What are the APIT tax rates for 2026/2027?
- The same as 2025/26. The IRD has not published separate APIT tables for 2026/2027, and the index to the tables in force from 1 April 2025 specifies them for every subsequent year of assessment unless other tables are specified. That means LKR 1,800,000 of personal relief, then 6% on the first LKR 1,000,000 of taxable income, 18%, 24% and 30% on each subsequent LKR 500,000, and 36% above LKR 4,300,000 of gross income.
- How many APIT tables does the IRD publish?
- Eight, for the year of assessment 2025/26 onwards. Table 01 covers regular monthly pay from a primary employment, 02 lump sums such as bonuses, 03 terminal benefits, 04 non-resident employees who are not citizens, 05 cumulative deductions for people who join or leave mid-year, 06 tax paid by the employer on the employee's behalf, 07 secondary employment, and 08 residents paid by a foreign employer. Each has its own instructions on the IRD website.
- What does “18% of monthly regular profits less Rs. 37,000” mean in Table 01?
- It is a shortcut for the progressive bands. Multiply your whole monthly salary by the rate for its row and subtract the fixed sum, and you get the same answer as taxing each slice separately. On a salary of LKR 250,000: 18% is 45,000, less 37,000, gives 8,000 of APIT a month. The fixed sum already allows for the tax-free LKR 150,000 and the cheaper 6% slice below.