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United Kingdom vs Sri Lanka
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇬🇧 United Kingdom
vs
🇱🇰 Sri Lanka
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–45%
Thresholds remain frozen; fiscal drag continuing
No change
6–36%
Post-IMF program stabilization; rates held
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–20%
Standard 20% maintained
No change
18%
18% stable; debt servicing requires revenue
No change

Corporate Tax Rate

Corporate Tax Rate
19–25%
25% main rate; possible future reform discussions
No change
30%
30% maintained
No change

Capital Gains Tax

Capital Gains Tax
18–24%
Post-Oct 2024 rates in full effect
No change
10%
10% CGT maintained
No change

Social Security & Payroll

Social Security / Payroll
~28.3%
15% employer NI; lower secondary threshold remains
No change
~12%
EPF reform; adequacy improving
No change
State, Regional & Local Taxes

🇬🇧 United KingdomDevolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically £1,200–£4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

🇱🇰 Sri LankaProvincial & 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 2022–23; significant IMF-backed tax reforms dramatically raised income tax rates and broadened the tax base.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

United Kingdom vs Sri Lanka: Key Tax Differences (2026)

💰 Income Tax: 🇬🇧 United Kingdom has a higher top income tax rate (0–45% vs 6–36%). 🇱🇰 Sri Lanka is more favourable for high earners.

🛒 VAT/Sales Tax: United Kingdom has a higher consumption tax (0–20% vs 18%).

🏢 Corporate Tax: 🇬🇧 United Kingdom offers a lower corporate rate (25% vs 30%), which can influence business location decisions.

📈 Capital Gains: 🇱🇰 Sri Lanka taxes investment gains at a lower rate (10% vs 24%), benefiting investors.

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All 🇬🇧 United Kingdom comparisons →All 🇱🇰 Sri Lanka comparisons →