Income Tax Calculator

Income Tax Calculator serves as a resource, aiding individuals in calculating their tax liabilities. You can enter the basic monthly salary in below and tax liabilities in Sri Lanka.

What is an Income Tax Calculator?

An Income Tax Calculator is a digital tool designed to assess an individual’s tax liability based on their monthly salary. Specifically tailored to the Sri Lankan tax system, this calculator provides a convenient means for taxpayers to determine their obligations accurately.

How Does it Work?

• Input Monthly Salary: Users input their monthly salary into the calculator. This serves as the primary determinant for tax calculation.
• Assessment of Liability: The calculator evaluates whether the monthly income exceeds the threshold for taxation. In Sri Lanka, taxation applies if the monthly income is equal to or greater than 100,001.00 LKR, and the annual income surpasses 1,200,000.00 LKR (100,000 LKR x 12).
• Tax Slabs and Rates: If the income surpasses the threshold, the calculator applies progressive slabs and rates. These slabs are structured based on income levels and range from 6% to 36%. Notably, each tax slab is applicable per additional 500,000 LKR of monthly income. 3,700,000 is the maximum slab.
• Calculation: Using the provided income and tax slab information, the calculator computes the tariff payable by the individual. This ensures an accurate representation of the tax liability based on the user’s financial status.

Importance and Benefits

• Financial Planning: By utilizing the Income Tax Calculator, individuals gain insights into their tariff obligations, enabling better financial planning and budgeting.
• Accuracy and Efficiency: The calculator ensures precise calculations, eliminating the potential for errors commonly associated with manual tax assessments.
• Time-Saving: With its user-friendly interface and automated functionality, the calculator saves valuable time for taxpayers, streamlining the tax assessment process.
• Educational Tool: The calculator serves as an educational resource, fostering a deeper understanding of the Sri Lankan tax system among users.

Note:

• For a more comprehensive assessment that includes tax and EPF deductions, you may check Salary Calculator
• To calculate EPF and ETF contributions effectively, you can check EPF & ETF Calculator that ensures accurate calculations for EPF and ETF.