Rental Income Tax Calculator Sri Lanka

Estimate how rental income may affect your annual income tax after rent relief, actual expenses, personal relief, and other income.

Enter your rental income details

Enter your monthly rent, months rented, other annual income, and whether you want to use the simple 25% rent relief or actual expenses.

Monthly rent received ≈ LKR 0.15 million per month Example: enter 150000 for LKR 150,000 per month.

Number of months rented Use 12 if rented for the full year.

Deduction method Most normal users can start with this option. It estimates the standard 25% rent relief.

Annual repair / maintenance / related expenses ≈ LKR 0.02 million Only used if you select actual expenses instead of 25% rent relief.

Other annual taxable income ≈ LKR 3.60 million Add salary, business income, bank interest, or other taxable income if you want a fuller estimate.

Tax already paid / deducted Optional. Add any income tax already paid or deducted during the year.

Annual rent before deductions LKR 1,800,000 ≈ LKR 1.80 million

Rent relief / expenses deducted LKR 450,000 Simple 25% rent relief

Rental income after deduction LKR 1,350,000 ≈ LKR 1.35 million

Other annual income used LKR 3,600,000 Used to estimate total annual tax

Personal relief used LKR 1,800,000 Amount deducted before tax

Taxable income after relief LKR 3,150,000 ≈ LKR 3.15 million

Estimated extra tax from rent LKR 432,000 Compared with tax before adding rent

Monthly tax estimate from rent LKR 36,000 Extra rent tax divided by rented months

Rent left after estimated rent tax LKR 1,368,000 Annual rent minus estimated extra tax

Effective tax rate on rent 24.00% Extra rent tax ÷ annual rent

Based on the details entered, your rental income may add about LKR 432,000 to your annual income tax estimate. Your total annual income tax estimate after adding rent is about LKR 654,000.

This calculator estimates how rental income may affect your income tax. Your actual tax depends on your full tax return, other income, reliefs, exemptions, and IRD treatment.

Calculation breakdown

This table updates instantly while you type. If JavaScript is blocked, it updates after you click Calculate.

Calculation step	Formula / basis	Estimated amount
Annual rent before deductions	Monthly rent × number of months rented	LKR 1,800,000
Rent relief / expenses deducted	25% of annual rent	LKR 450,000
Rental income after deduction	Annual rent minus rent relief / expenses	LKR 1,350,000
Other annual taxable income	Amount entered by user	LKR 3,600,000
Total income before personal relief	Other income + rental income after deduction	LKR 4,950,000
Personal relief used	Up to LKR 1,800,000	LKR 1,800,000
Taxable income after relief	Total income before relief minus personal relief	LKR 3,150,000
Estimated annual tax after adding rent	Progressive individual income tax slabs	LKR 654,000
Estimated annual tax before adding rent	Tax on other income only	LKR 222,000
Estimated extra tax from rent	Tax after adding rent minus tax before adding rent	LKR 432,000
Tax already paid / deducted	Amount entered by user	LKR 0
Balance / credit estimate	Estimated total annual tax minus tax already paid	LKR 654,000 to pay

Understanding rental income tax

Is rental income taxable in Sri Lanka?

Yes. Rental income is generally part of your income for tax purposes. The final tax depends on your total income, available reliefs, and the way the rental property is treated.

What is 25% rent relief?

In simple terms, this means only part of your rental income may be taxed after applying the permitted rent relief. This calculator uses a simple 25% rent relief estimate unless you choose actual expenses instead.

Why does other income matter?

Sri Lanka uses progressive tax slabs. This means rental income can be taxed differently depending on your salary, business income, fixed deposit interest, and other income.

Formula used

Annual Rent = Monthly Rent × Months Rented
Rent Relief = 25% of Annual Rent, unless actual expenses are selected
Rental Income After Deduction = Annual Rent − Relief / Expenses
Total Income = Other Annual Income + Rental Income After Deduction
Taxable Income = Total Income − Personal Relief
Extra Tax From Rent = Tax with rental income − Tax without rental income

Educational estimate only. This calculator does not replace IRD guidance, tax return filing, accounting advice, legal advice, or professional tax advice.

Source note: This calculator uses the 2025/2026 personal relief, progressive individual income tax slabs, and the 25% rent relief treatment published by the Inland Revenue Department of Sri Lanka.