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United States vs Sri Lanka
Tax Rate Comparison

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

πŸ‡ΊπŸ‡Έ United States
vs
πŸ‡±πŸ‡° Sri Lanka
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
10–37%
TCJA provisions extended; no sunset
No change
6–36%
Post-IMF program stabilization; rates held
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0–11%
No federal sales tax; state avg ~6–9%
No change
18%
18% stable; debt servicing requires revenue
No change
Corporate Tax Rate
Corporate Tax Rate
21%
Federal flat; proposals to raise to 28% stalled
No change
30%
30% maintained
No change
Capital Gains Tax
Capital Gains Tax
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
10%
10% CGT maintained
No change
Social Security & Payroll
Social Security / Payroll
~15.3%
SS wage base ~$180,000 est. 2026
No change
~12%
EPF reform; adequacy improving
No change
State, Regional & Local Taxes

πŸ‡ΊπŸ‡Έ United States β€” State & Local Taxes

The U.S. has 50 states each setting their own income tax (0%–13.3%). 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.

πŸ‡±πŸ‡° Sri Lanka β€” 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 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 States vs Sri Lanka: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ΊπŸ‡Έ United States has a higher top income tax rate (10–37% vs 6–36%). πŸ‡±πŸ‡° Sri Lanka is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Sri Lanka has a higher consumption tax (0–11% vs 18%).

🏒 Corporate Tax: πŸ‡ΊπŸ‡Έ United States offers a lower corporate rate (21% vs 30%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡±πŸ‡° Sri Lanka taxes investment gains at a lower rate (10% vs 20%), benefiting investors.

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