How APIT (PAYE) Income Tax Works in Sri Lanka

APIT (Advance Personal Income Tax) is the system employers use to deduct income tax directly from your salary in Sri Lanka, replacing the older PAYE scheme. The mechanics are very similar — tax is withheld each month before you are paid.

The first 150,000 LKR of monthly income (1,800,000 LKR per year) is tax-free. Income above that is taxed in progressive bands, starting at 6% and rising in steps up to 36% for the highest band.

Because the system is progressive, only the portion of your income that falls inside each band is taxed at that band's rate. This means a small pay rise never reduces your take-home pay.

To see exactly how much tax applies to your salary, use our income tax calculator below — it shows the deduction for each band so you can see where your money goes.