India vs Sri Lanka
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฎ๐ณ India โ State, Professional & GST Variation
India's 28 states levy professional tax (up to โน2,500/year), stamp duty on property (3%โ8%), and state excise on alcohol. GST has largely unified indirect taxes but petroleum products remain state-controlled. Property tax (nagar nigam) varies by city. Maharashtra, Karnataka, and Tamil Nadu have higher professional taxes.
๐ฑ๐ฐ Sri Lanka โ Provincial & Local Authority Taxes
Sri Lanka's 9 provincial councils have some tax powers including turnover tax, certain business taxes, and stamp duties within their provinces. Local authorities (municipal councils, urban councils, pradeshiya sabhas) levy property tax (Assessment rate) at 25% of annual value and various service fees. The Inland Revenue Department (IRD) administers national taxes. Sri Lanka went through a severe debt crisis in 2022โ23; significant IMF-backed tax reforms dramatically raised income tax rates and broadened the tax base.
India vs Sri Lanka: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฑ๐ฐ Sri Lanka has a higher top income tax rate (0โ30% vs 6โ36%). ๐ฎ๐ณ India is more favourable for high earners.
๐ VAT/Sales Tax: India has a higher consumption tax (0โ28% vs 18%).
๐ข Corporate Tax: ๐ฎ๐ณ India offers a lower corporate rate (25% vs 30%), which can influence business location decisions.
๐ Capital Gains: ๐ฑ๐ฐ Sri Lanka taxes investment gains at a lower rate (10% vs 20%), benefiting investors.