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Budget 2027

APIT 2027: what Budget 2027 changes for your income tax

APIT, Advance Personal Income Tax, is the income tax your employer takes from your pay each month, and many people call it PAYE. This page shows what the Budget changes for it and when, and what it could mean for your pay. A proposal is marked “if passed”, because it is not law until Parliament passes it.

Updated · 7 min read

Where things stand

Proposal, not yet law

Budget 2027, presented on 12 November 2026, proposes a tax-free amount of Rs 162,500 a month from April 2027. This is a proposal, not yet law.

Source: Budget Speech 2027, Ministry of Finance (opens in a new tab)

Last checked: 12 November 2026

Work out your take-home pay
On this page

APIT today

APIT, Advance Personal Income Tax, is the income tax your employer takes from your pay each month. Many people still call it PAYE or “payee tax”.

The first Rs 150,000 of your pay each month is tax-free, which is Rs 1,800,000 a year. These rates come from Budget 2025, presented on 17 February 2025, and are in force from 1 April 2025.

These are the Inland Revenue Department’s rows for your monthly pay. Find the row your pay falls in.

  • Up to Rs 150,000 a month No APIT.
  • Over Rs 150,000 and up to Rs 233,333 a month 6% of your monthly pay, less Rs 9,000.
  • Over Rs 233,333 and up to Rs 275,000 a month 18% of your monthly pay, less Rs 37,000.
  • Over Rs 275,000 and up to Rs 316,667 a month 24% of your monthly pay, less Rs 53,500.
  • Over Rs 316,667 and up to Rs 358,333 a month 30% of your monthly pay, less Rs 72,500.
  • Over Rs 358,333 a month 36% of your monthly pay, less Rs 94,000.

What Budget 2027 proposes

Budget 2027, presented on 12 November 2026, proposes a tax-free amount of Rs 162,500 a month from April 2027. This is a proposal, not yet law.

  • The tax-free amount. Rs 162,500 a month (Rs 1,950,000 a year), from April 2027, if passed.
  • The rates. Above the tax-free amount, 6% on the next Rs 70,833, then 12%, 18%, 24% and 30% on each Rs 50,000 after that, and 36% on pay over Rs 433,333 a month, if passed. Today it is 6% on the next Rs 83,333, then 18%, 24% and 30% on each Rs 41,667 after that, and 36% on pay over Rs 358,333 a month.
  • When. From April 2027, as the speech gives it. It applies only after Parliament passes it.

From the speech’s bands and rates, these are the rows for your monthly pay from April 2027, if passed.

  • Up to Rs 162,500 a month No APIT.
  • Over Rs 162,500 and up to Rs 233,333 a month 6% of your monthly pay, less Rs 9,750.
  • Over Rs 233,333 and up to Rs 283,333 a month 12% of your monthly pay, less Rs 23,750.
  • Over Rs 283,333 and up to Rs 333,333 a month 18% of your monthly pay, less Rs 40,750.
  • Over Rs 333,333 and up to Rs 383,333 a month 24% of your monthly pay, less Rs 60,750.
  • Over Rs 383,333 and up to Rs 433,333 a month 30% of your monthly pay, less Rs 83,750.
  • Over Rs 433,333 a month 36% of your monthly pay, less Rs 109,750.

How much more would you take home?

Take-home pay a month, today and if passed, from April 2027
Monthly gross salaryTake-home todayTake-home, if passedDifference
Rs 100,000Rs 92,000Rs 92,000No change
Rs 150,000Rs 138,000Rs 138,000No change
Rs 200,000Rs 181,000Rs 181,750+Rs 750
Rs 250,000Rs 222,000Rs 223,750+Rs 1,750
Rs 350,000Rs 289,500Rs 298,750+Rs 9,250
Rs 500,000Rs 374,000Rs 389,750+Rs 15,750

Take-home pay is the gross salary less APIT and the 8% EPF, with all of the pay counting for EPF. Today’s column uses the rates in force from 1 April 2025. A proposal, not yet law.

When would it start, and when would your payslip change?

The last change, Budget 2025, is the example to go by. These are its official dates.

  1. 17 February 2025

    Budget 2025 was presented to Parliament.

  2. 20 March 2025

    The Inland Revenue (Amendment) Act, No. 2 of 2025, was certified.

  3. 25 March 2025

    The Inland Revenue Department’s APIT tables for the new rates are dated this day.

  4. 1 April 2025

    The new rates came into force, and employers used the new tables from the April payslip.

That is about six weeks from the speech to the start.

Until Parliament passes a change and the Inland Revenue Department publishes new tables, employers use today’s table.

For Budget 2027, the speech gives April 2027 as the start. It is a proposal, not yet law.

Questions people ask about the new APIT

  • What is APIT? APIT, Advance Personal Income Tax, is the income tax your employer takes from your pay each month. The Inland Revenue Department publishes the tables employers use.
  • Is APIT the same as PAYE? People use the two names for the same monthly tax on your pay, and many say PAYE or “payee tax”. APIT is the name on the Inland Revenue Department’s tables, so this page uses it.
  • When will the new APIT start? Budget 2027 proposes April 2027. That is a proposal, not yet law: it starts only if Parliament passes it and the Inland Revenue Department publishes new tables. Last time it was about six weeks from the speech to the start.
  • Is what the Budget says already law? No. A Budget speech is a proposal. A change becomes law when Parliament passes it, and employers use it when the Inland Revenue Department publishes new tables.
  • Do I need to do anything? No. Your employer applies the Inland Revenue Department’s table to your pay.
  • Will my take-home pay go up? It could, if passed. The table above shows some salaries. The salary calculator shows your take-home pay at today’s rates and, marked “if passed”, at the proposal.
  • Does this apply to government employees? APIT applies to them. Pensionable government staff pay no EPF, and government departments pay no ETF, so their take-home pay is worked out differently.
  • When is the Budget 2027 vote? In the weeks after the speech, after Parliament’s debate.

Sources

Checked on 12 November 2026. These are official pages only. Rates can change, so check with the Inland Revenue Department before you rely on this page. It is general help, not tax advice.

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