Income Tax Calculator Sri Lanka 2026/2027

Sri Lanka taxes resident individuals on a progressive scale administered by the Inland Revenue Department (IRD), for each Year of Assessment running 1 April to 31 March. For Y/A 2026/2027 (Apr 1, 2026 – Mar 31, 2027), the first Rs. 1,800,000 of annual income is tax-free (the personal relief), with income above that taxed in bands from 6% up to 36%.

Your assessable income isn't limited to your local-currency salary. It generally includes worldwide income, foreign currency salary or freelance earnings, rental income from land or property, and interest from fixed deposits and savings all count toward your total. Employed individuals typically have tax withheld monthly by their employer through the Advance Personal Income Tax (APIT) scheme, while self-employed professionals and business owners generally file and pay directly with the IRD.

Foreign currency income gets special treatment. Under IRD Notice PN/IT/2025-01, "service export" income (work for a client outside Sri Lanka) and other foreign-sourced income are taxed at a maximum of 15% (just 6% on the first Rs. 1,000,000), instead of the normal bands up to 36%, as long as it's remitted to Sri Lanka through a licensed bank. This calculator applies that concessional rate automatically wherever it applies.

This calculator gives you a fast, free estimate across all of these income types, for full IRD registration, VAT, PAYE and annual return filing, our tax consultancy service handles the compliance work for you.