Sri Lanka personal income tax rates
The rates this site uses for individuals, by year of assessment (1 April to 31 March). Each figure links to the Inland Revenue Department document it was taken from and shows when it was last checked.
Calculate your taxYear of assessment 2026/2027
Personal relief
Rs. 1,800,000 is deducted from the assessable income of a resident individual, or a non-resident citizen, before tax is calculated. It cannot be set against gains on investment assets.
Source: Inland Revenue Department, §1 Personal Relief Last verified 6 Oct 2026Verified against an official source
Carried forward from Y/A 2025/2026: the IRD notice states the change applies to years of assessment commencing from 2025/2026, and Act No. 11 of 2026 does not alter it. IRD had not published a 2026/2027 tax chart or APIT tables when this was last verified — confirm on publication (TAX_RULES.md U2).
Tax bands
| Taxable income | Band | Rate |
|---|---|---|
| Rs. 0 – Rs. 1,000,000 | First Rs. 1,000,000 | 6% |
| Rs. 1,000,000 – Rs. 1,500,000 | Next Rs. 500,000 | 18% |
| Rs. 1,500,000 – Rs. 2,000,000 | Next Rs. 500,000 | 24% |
| Rs. 2,000,000 – Rs. 2,500,000 | Next Rs. 500,000 | 30% |
| Above Rs. 2,500,000 | Balance | 36% |
Source: Inland Revenue Department, §2.1(a) Last verified 6 Oct 2026Verified against an official source
Gains on investment assets
10% on assets realised from 1 Apr 2026 to 2 Jun 2026
Source: Inland Revenue Department, Schedule 8(c) Last verified 6 Oct 2026Verified against an official source
15% on assets realised from 3 Jun 2026
Source: Inland Revenue Department, §20 Revision of Capital Gain Tax Rates Last verified 6 Oct 2026Requires verification
Service exports and foreign-currency income remitted through a bank
Taxed at the normal rates, with a maximum rate of 15%.
Source: Inland Revenue Department, Schedule 8(e); Annexure 7; Examples 2, 3, 6 Last verified 6 Oct 2026Requires verification
Carried forward from Y/A 2025/2026; mechanics are an interpretation (TAX_RULES.md U1).
Withholding (AIT / WHT)
| Payment | Rate | Treatment |
|---|---|---|
| AIT on service fees to resident individualsDeducted from the full payment to a non-employee individual in a listed profession where payments exceed Rs. 100,000 in a calendar month. Creditable. | 5% | Credited against your tax |
| WHT on lottery, betting and gambling winningsFinal withholding tax. Lottery winnings with a gross amount not exceeding Rs. 500,000 are exempt. | 14.0% | Final tax; not taxed again |
| WHT on dividendsFinal withholding tax on dividends paid by resident companies. | 15% | Final tax; not taxed again |
| AIT on rent paid to residentsDeducted from the full payment where aggregate rent exceeds Rs. 100,000 in a calendar month. Creditable. | 10% | Credited against your tax |
| AIT on interest and discountsAdvance Income Tax deducted by banks and financial institutions from interest paid to residents. Creditable, not final. | 10% | Credited against your tax |
Year of assessment 2025/2026
Personal relief
Rs. 1,800,000 is deducted from the assessable income of a resident individual, or a non-resident citizen, before tax is calculated. It cannot be set against gains on investment assets.
Source: Inland Revenue Department, Annexure 1(a) Last verified 6 Oct 2026Verified against an official source
Tax bands
| Taxable income | Band | Rate |
|---|---|---|
| Rs. 0 – Rs. 1,000,000 | First Rs. 1,000,000 | 6% |
| Rs. 1,000,000 – Rs. 1,500,000 | Next Rs. 500,000 | 18% |
| Rs. 1,500,000 – Rs. 2,000,000 | Next Rs. 500,000 | 24% |
| Rs. 2,000,000 – Rs. 2,500,000 | Next Rs. 500,000 | 30% |
| Above Rs. 2,500,000 | Balance | 36% |
Source: Inland Revenue Department, Annexure 7 Last verified 6 Oct 2026Verified against an official source
Gains on investment assets
10% on assets realised from 1 Apr 2025
Source: Inland Revenue Department, Schedule 8(c) Last verified 6 Oct 2026Verified against an official source
Service exports and foreign-currency income remitted through a bank
Taxed at the normal rates, with a maximum rate of 15%.
Source: Inland Revenue Department, Schedule 8(e); Annexure 7; Examples 2, 3, 6 Last verified 6 Oct 2026Requires verification
The 15% maximum is verified. How it interacts with the progressive bands is an interpretation that reproduces Annexure 7 and the Guide's worked examples (TAX_RULES.md U1).
Withholding (AIT / WHT)
| Payment | Rate | Treatment |
|---|---|---|
| AIT on rent paid to residentsDeducted from the full payment where aggregate rent exceeds Rs. 100,000 in a calendar month. Creditable. | 10% | Credited against your tax |
| AIT on service fees to resident individualsDeducted from the full payment to a non-employee individual in a listed profession where payments exceed Rs. 100,000 in a calendar month. Creditable. | 5% | Credited against your tax |
| WHT on lottery, betting and gambling winningsFinal withholding tax. Lottery winnings with a gross amount not exceeding Rs. 500,000 are exempt. | 14.0% | Final tax; not taxed again |
| AIT on interest and discountsAdvance Income Tax deducted by banks and financial institutions from interest paid to residents. Creditable, not final. | 10% | Credited against your tax |
| WHT on dividendsFinal withholding tax on dividends paid by resident companies. | 15% | Final tax; not taxed again |
Year of assessment 2024/2025
Personal relief
Rs. 1,200,000 is deducted from the assessable income of a resident individual, or a non-resident citizen, before tax is calculated. It cannot be set against gains on investment assets.
Source: Inland Revenue Department, Personal Relief Last verified 6 Oct 2026Verified against an official source
Tax bands
| Taxable income | Band | Rate |
|---|---|---|
| Rs. 0 – Rs. 500,000 | First Rs. 500,000 | 6% |
| Rs. 500,000 – Rs. 1,000,000 | Next Rs. 500,000 | 12% |
| Rs. 1,000,000 – Rs. 1,500,000 | Next Rs. 500,000 | 18% |
| Rs. 1,500,000 – Rs. 2,000,000 | Next Rs. 500,000 | 24% |
| Rs. 2,000,000 – Rs. 2,500,000 | Next Rs. 500,000 | 30% |
| Above Rs. 2,500,000 | Balance | 36% |
Source: Inland Revenue Department, Tax rates — individuals Last verified 6 Oct 2026Verified against an official source
Gains on investment assets
10% on assets realised from 1 Apr 2024
Source: Inland Revenue Department, Investment asset gains Last verified 6 Oct 2026Verified against an official source
Service exports and foreign-currency income remitted through a bank
Exempt for this year of assessment.
Source: Inland Revenue Department, §3 (exemptions removed from 1 April 2025) Last verified 6 Oct 2026Based on a secondary source
Exemption before 2025-04-01 inferred from the notice removing it (TAX_RULES.md U9).
Withholding (AIT / WHT)
| Payment | Rate | Treatment |
|---|---|---|
| AIT on interest and discountsAdvance Income Tax deducted by banks and financial institutions from interest paid to residents. Creditable, not final. | 5% | Credited against your tax |
| WHT on dividendsFinal withholding tax on dividends paid by resident companies. | 15% | Final tax; not taxed again |
| AIT on rent paid to residentsDeducted from the full payment where aggregate rent exceeds Rs. 100,000 in a calendar month. Creditable. | 10% | Credited against your tax |
| WHT on lottery, betting and gambling winningsFinal withholding tax. Lottery winnings with a gross amount not exceeding Rs. 500,000 are exempt. | 14.0% | Final tax; not taxed again |
| AIT on service fees to resident individualsDeducted from the full payment to a non-employee individual in a listed profession where payments exceed Rs. 100,000 in a calendar month. Creditable. | 5% | Credited against your tax |