Introduction
If you are employed in Sri Lanka and receive a monthly salary, you have probably noticed deductions labeled as APIT on your payslip. Many employees search online for answers like:
- What is APIT?
- How is salary tax calculated in Sri Lanka?
- What is the tax-free salary amount?
- How much tax do I pay monthly?
At TaxCalculator.lk, we help Sri Lankan employees calculate their monthly salary tax instantly using updated APIT tax rates for 2025/2026.
What Is APIT?
APIT stands for Advance Personal Income Tax.
It is a monthly income tax deducted by employers from employee salaries under Sri Lanka’s Inland Revenue regulations.
The employer deducts the tax before paying your salary and sends it directly to the Inland Revenue Department (IRD).
Many people still search for “PAYE tax,” but APIT is the current system used in Sri Lanka.
Who Needs to Pay APIT?
Employees earning above the tax-free threshold are generally liable for APIT deductions.
The current tax-free threshold is:
If your monthly taxable income exceeds this amount, your employer may deduct APIT from your salary.
What Income Is Taxable?
Taxable employment income may include:
- Basic salary
- Overtime payments
- Bonuses
- Incentives
- Transport allowances
- Fuel allowances
- Commissions
- Certain company benefits
Sri Lanka APIT Tax Rates 2025/2026
Sri Lanka uses progressive tax slabs.
| Annual Taxable Income | Tax Rate |
|---|---|
| First Rs. 1.8 million | 0% |
| Next slab | 6% |
| Next slab | 18% |
| Higher slab | 24% |
| Higher slab | 30% |
| Highest slab | 36% |
Higher earners pay higher tax percentages.
Example APIT Calculation
Suppose:
- Gross salary = Rs. 250,000
- Employee EPF = 8%
- Taxable income calculated after deductions
Your monthly APIT will depend on the applicable tax slab.
Instead of complicated manual calculations, use:
Common APIT Questions
Is EPF taxable?
Employee EPF deductions are generally considered when calculating taxable salary.
Are bonuses taxed?
Yes. Bonuses are taxable employment income.
Can employers make mistakes?
Yes. Incorrect payroll calculations happen frequently.
This is why employees increasingly use independent salary calculators.
Why Use TaxCalculator.lk?
Benefits include:
- Updated APIT tax tables
- Instant salary calculations
- Mobile-friendly access
- Net salary estimation
- Bonus tax calculations
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