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Bangladesh income tax calculator (2026-27)

Enter your salary to see your income tax for income year 2026-27 (July 2026 – June 2027) under the Finance Act 2026 — the Tk 4 lakh tax-free limit (higher for women, seniors and others), the salary exemption, the investment rebate and the Tk 5,000 minimum tax.

1Your income

Basic plus all allowances, before tax. The yearly figure is this × 12.

Optional. Eid and other bonuses for the year — they count as salary.

Optional. Business, rent, interest and other income taxed at slab rates (not income with final tax).

2About you

Optional. A parent or legal guardian gets Tk 50,000 more tax-free for each.

New taxpayers pay a minimum tax of Tk 1,000 instead of Tk 5,000.

3Investment rebate

Optional. Savings certificates, DPS, listed shares, life insurance premiums, provident fund, zakat and other allowed investments and spending.

Your results

Your results appear here

Type your measurements in the empty boxes. Still needed:

  • Gross salary per month (Tk)
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  • PDF & CSV

How do I calculate income tax on my salary in Bangladesh?

  1. 1Enter your gross salary per month or per year and your festival bonuses.
  2. 2Pick your taxpayer type (general, woman or 65+, disability, third gender or freedom fighter).
  3. 3Add the amount you invest in savings certificates, DPS, shares or insurance for the rebate.
  4. 4Read your yearly and monthly tax with the slab-by-slab breakdown.

Income tax slabs in Bangladesh for 2026-27

  1. 01Salary exemption = one third of salary income, at most Tk 5,00,000
  2. 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)
  3. 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%
  4. 04Rebate = lowest of 3% of taxable income, 10% of eligible investment, Tk 7,50,000
  5. 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

Formulas last reviewed: September 30, 2026 ·How we check our formulas