How do I calculate income tax on my salary in Bangladesh?
- 1Enter your gross salary per month or per year and your festival bonuses.
- 2Pick your taxpayer type (general, woman or 65+, disability, third gender or freedom fighter).
- 3Add the amount you invest in savings certificates, DPS, shares or insurance for the rebate.
- 4Read your yearly and monthly tax with the slab-by-slab breakdown.
Income tax slabs in Bangladesh for 2026-27
- 01Salary exemption = one third of salary income, at most Tk 5,00,000
- 02Tax-free: Tk 4,00,000 · women and 65+ Tk 4,50,000 · disability and third gender Tk 5,25,000 · freedom fighters and July Warriors Tk 5,50,000 (+ Tk 50,000 per disabled child)
- 03Then: next Tk 3,00,000 at 10% · next Tk 4,00,000 at 15% · next Tk 5,00,000 at 20% · next Tk 20,00,000 at 25% · the rest at 30%
- 04Rebate = lowest of 3% of taxable income, 10% of eligible investment, Tk 7,50,000
- 05Tax = slab tax − rebate, but at least Tk 5,000 (Tk 1,000 for a new taxpayer) once income is above the tax-free limit
The Finance Act 2026, passed on 30 June 2026, raised the general tax-free limit to Tk 4 lakh for income years 2026-27 and 2027-28 and removed the old 5% slab, so the first taxable band is now 10%. Women, people aged 65 and over, people with a disability, third-gender taxpayers and gazetted freedom fighters have higher limits.
For salaried people, one third of salary income (at most Tk 5 lakh) is exempt before the slabs are applied. Each slab rate applies only to the income inside that slab.
Investing in savings certificates, DPS, listed shares, life insurance and similar items earns a rebate — the lowest of 3% of taxable income, 10% of the investment or Tk 7.5 lakh. If your income is above the tax-free limit, you pay at least the minimum tax, now Tk 5,000 everywhere.
Bangladesh income tax calculation example
On a salary of 80,000 a month plus 160,000 in bonuses, the taxable income is 746,666.67 after the salary exemption.
With 100,000 invested, the tax is 27,000 a year, about 2,250 a month.
Good to know
- Keep certificates for every investment — the rebate needs proof when you file.
- Investment above 30% of your taxable income earns no extra rebate, because 10% of it already reaches the 3% cap.
- Even if no tax is due, you may need to file a return to show proof of submission (PSR).
Bangladesh income tax — common questions
What is the tax-free income limit in Bangladesh for 2026-27?
Tk 4,00,000 for most people; Tk 4,50,000 for women and anyone 65 or over; Tk 5,25,000 for people with a disability and third-gender taxpayers; Tk 5,50,000 for gazetted war-wounded freedom fighters and July Warriors. Parents of a child with a disability get Tk 50,000 more.
What are the income tax slabs for 2026-27?
After the tax-free limit: next Tk 3 lakh at 10%, next Tk 4 lakh at 15%, next Tk 5 lakh at 20%, next Tk 20 lakh at 25% and the rest at 30%. The 5% slab was removed by the Finance Act 2026.
What is the minimum income tax in Bangladesh?
If your income is above the tax-free limit, you pay at least Tk 5,000, in every area from 2026-27 (it used to be Tk 5,000, 4,000 or 3,000 by area). A first-time taxpayer pays at least Tk 1,000.
How is the investment tax rebate calculated?
The rebate is the lowest of 3% of your taxable income, 10% of your eligible investment and spending, and Tk 7,50,000. It is taken off your tax.
How much of my salary is tax-free?
One third of your salary income, up to Tk 5 lakh, is exempt. The rest, plus other income, is your taxable income, and then the tax-free limit and slabs apply.
Sources
- National Board of Revenue (NBR) – income tax
- PwC Worldwide Tax Summaries – Bangladesh, taxes on personal income (reviewed 31 July 2026)
- PwC – Bangladesh, deductions (investment rebate, salary exemption)
- The Daily Star – Finance bill passed: tax-free income threshold Tk 4 lakh for FY2026-27
- Roy Law Nexus – Bangladesh income tax guide 2026–27
Formulas last reviewed: September 30, 2026 ·How we check our formulas