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APIT calculator Sri Lanka (2025/26)
Enter a monthly salary and this calculator applies the IRD 2025/26 APIT rules: the first LKR 150,000 a month (LKR 1,800,000 a year) is relief, then tax runs at 6%, 18%, 24%, 30% and 36% in bands. It shows the monthly deduction, the annual tax and the bracket breakdown.
How it is calculated
- AnnualiseMonthly remuneration × 12 (add any non-cash benefits you enter).
- ReliefSubtract the personal relief of LKR 1,800,000 for 2025/26.
- BandsFirst LKR 1,000,000 at 6%, next LKR 500,000 at 18%, next LKR 500,000 at 24%, next LKR 500,000 at 30%, balance at 36%.
- MonthlyAnnual tax ÷ 12 is the APIT the employer deducts each month for an employee with one employment and no other declared income (IRD Table 1).
Applies to regular monthly remuneration (IRD Table 1). Lump sums, terminal benefits, non-resident employees and secondary employment use other IRD tables. Cumulative Table 5 applies once an employee's cumulative pay in the year crosses the thresholds set by the IRD.
Rates used
| Item | Rate or amount | Applies to |
|---|---|---|
| APIT personal relief | LKR 1,800,000 per year (LKR 150,000 per month) | Resident employees, IRD Table 1 |
| APIT band | Next LKR 1,000,000 at 6% | Annual taxable income after relief |
| APIT band | Next LKR 500,000 at 18% | Annual taxable income after relief |
| APIT band | Next LKR 500,000 at 24% | Annual taxable income after relief |
| APIT band | Next LKR 500,000 at 30% | Annual taxable income after relief |
| APIT band | Balance at 36% | Annual taxable income after relief |
| EPF employee | 8% | EPF-liable earnings, deducted from employee |
| EPF employer | 12% | EPF-liable earnings, paid by employer |
| ETF employer | 3% | EPF-liable earnings, paid by employer |
| Gratuity | Half a month’s salary per completed year | After 5 years; employers with 15+ staff |
Sources: IRD APIT tax tables 2025/26, EPF, ETF Board, Payment of Gratuity Act No. 12 of 1983. Last reviewed 3 September 2026.
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See Humanised payroll softwareFrequently asked questions
What is APIT in Sri Lanka?
APIT (Advance Personal Income Tax) is the income tax an employer deducts from an employee’s monthly pay and remits to the Inland Revenue Department, using the IRD’s APIT tables. It replaced PAYE. The employer files monthly schedules and an annual T10 statement per employee.
What is the APIT tax-free threshold for 2025/26?
The personal relief is LKR 1,800,000 a year, or LKR 150,000 a month. Regular monthly remuneration at or below LKR 150,000 attracts no APIT under Table 1.
What are the APIT tax rates for 2025/26?
After the LKR 1,800,000 relief, annual taxable income is taxed at 6% on the first LKR 1,000,000, 18% on the next LKR 500,000, 24% on the next LKR 500,000, 30% on the next LKR 500,000, and 36% on the balance.
How is APIT calculated on a monthly salary?
Annualise the monthly remuneration (× 12), subtract the relief, apply the bands, then divide the annual tax by 12. For LKR 250,000 a month the monthly APIT is LKR 8,000.
Does APIT apply to allowances and non-cash benefits?
Yes. Regular allowances are part of remuneration, and non-cash benefits such as vehicles and housing are valued under the IRD’s rules and added to taxable pay. Enter their monthly value in the benefits field.
What is APIT Table 5?
Table 5 is the cumulative table the IRD applies once an employee’s cumulative remuneration in the year passes the thresholds in the guideline, so that tax on bonuses and increments is caught up over the year. This calculator shows the regular Table 1 deduction only.
When must the employer pay APIT?
APIT deducted in a month is remitted to the IRD by the 15th of the following month, with the monthly schedule; the annual T10 statement goes to each employee after the year ends.
Is the employer liable if APIT is under-deducted?
Yes. Under the Inland Revenue Act the withholding obligation sits with the employer, and it is not reduced by outsourcing payroll. Payroll software with the current tables removes the calculation risk.