Rental Income Tax Calculator Sri Lanka

Rental Income Tax Calculator Sri Lanka

Estimate how much income tax may apply to rental income in Sri Lanka after rental relief, expenses, and personal relief.

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.

Example: 150000 for LKR 150,000 per month.
Use 12 if rented for the full year.
Most normal users can start with the simple 25% rent relief estimate.
Only used if you select actual expenses instead of 25% rent relief.
Add salary, business income, FD interest, or other income if you want a fuller estimate.
Enter your rental income details and click Calculate.
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 after you click Calculate.

Calculation step Formula / basis Estimated amount
Click Calculate to see the breakdown.

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 the 25% rent relief?

A resident individual with rental income from an investment asset may generally deduct 25% of total rental income as rent relief, unless actual repair, maintenance, and depreciation expenses are claimed 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, FD interest, and other income.

Formula used

  1. Annual Rent = Monthly Rent × Months Rented
  2. Rent Relief = 25% of Annual Rent, unless actual expenses are selected
  3. Rental Income After Deduction = Annual Rent − Relief / Expenses
  4. Total Income = Other Annual Income + Rental Income After Deduction
  5. Taxable Income = Total Income − Personal Relief
  6. Extra Tax From Rent = Tax with rental income − tax without rental income
This calculator is for educational estimates only. It does not replace IRD guidance, a tax return, accounting advice, legal advice, or professional tax advice.
Source note: This calculator uses the 25% rental relief and current individual income tax relief/slab approach published by the Inland Revenue Department for 2025/2026.