Sri Lanka vs United States
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.
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.
๐บ๐ธ United States โ State & Local Taxes
The U.S. has 50 states each setting their own income tax (0%โ13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.
Sri Lanka vs United States: Key Tax Differences (2026)
๐ฐ Income Tax: ๐บ๐ธ United States has a higher top income tax rate (6โ36% vs 10โ37%). ๐ฑ๐ฐ Sri Lanka is more favourable for high earners.
๐ VAT/Sales Tax: Sri Lanka has a higher consumption tax (18% vs 0โ11%).
๐ข Corporate Tax: ๐บ๐ธ United States offers a lower corporate rate (21% 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.