🇱🇰 How tax works
in Sri Lanka.
2025/26 · National income tax guide
The calculation, explained.
The official 2025/26 resident schedule applies five progressive bands after the LKR1.8m personal relief in gross mode.
Retirement contributions, qualifying relief, foreign-currency concessions and withholding credits are excluded. Independent doctor service fees can attract 5% advance withholding under the source rules; this is not necessarily the final annual tax.
Doctors: employment and independent practice
The Sri Lanka comparison is an ordinary resident employment scenario. We have not yet verified a doctor-specific independent-practice regime for this country. Do not apply Indonesia’s NPPN 50% here or enter clinic turnover as salary. Practice deductions, professional contributions and mixed income require additional local research.
Tax brackets · LKR
Each rate applies only to the income inside that band.
| Taxable income slice | Rate |
|---|---|
| 0 – 1,000,000 | 6.0% |
| 1,000,000 – 1,500,000 | 18.0% |
| 1,500,000 – 2,000,000 | 24.0% |
| 2,000,000 – 2,500,000 | 30.0% |
| Above 2,500,000 | 36.0% |
Your worked example
Based on your €100,000 annual gross salary estimate, equivalent to LKR 37,013,024.
- 1. Annual input
- LKR 37,013,024
- 2. Custom deductible expenses
- − LKR 0
- 3. Modeled allowance / base deduction
- − LKR 1,800,000
- 4. Modeled taxable base
- LKR 35,213,024
| Taxed portion | Rate | Tax |
|---|---|---|
| LKR 1,000,000 | 6.0% | LKR 60,000 |
| LKR 500,000 | 18.0% | LKR 90,000 |
| LKR 500,000 | 24.0% | LKR 120,000 |
| LKR 500,000 | 30.0% | LKR 150,000 |
| LKR 32,713,024 | 36.0% | LKR 11,776,689 |
- 5. Modeled tax credits (capped at tax due)
- − LKR 0
- 6. Included additional tax
- LKR 0
- 7. Income tax
- LKR 12,196,689
- Effective rate = tax ÷ annual input
- 33.0%
- After income tax, before other deductions
- LKR 24,816,335
Sources & assumptions
Sources checked 12 October 2026. The schedule's tax year is shown above; checking a source does not make a simplified model a complete payroll calculation.
Assumptions: single, no dependent children, age 30+, full-year resident, ordinary employment income only. No capital gains, dividends, special expatriate relief or double-tax treaty adjustments.