Income Tax Slab in Bangladesh 2026-27: Rates, Tax-Free Limit and Examples
This guide sets out the income tax rates for individual taxpayers in Bangladesh for assessment year 2026-27 (income year July 2025 to June 2026), under the Income Tax Act 2023 as amended by the Finance Act 2026. To work out your own tax, use our free income tax calculator.
Tax-free income limit for 2026-27
The first part of your taxable income is not taxed. The limit depends on who you are:
| Taxpayer | AY 2026-27 and 2027-28 | AY 2028-29 |
|---|---|---|
| General | Tk 4,00,000 | Tk 4,50,000 |
| Women, and senior citizens aged 65 or older | Tk 4,50,000 | Tk 5,00,000 |
| Persons with disabilities; third-gender taxpayers | Tk 5,25,000 | Tk 5,75,000 |
| War-wounded gazetted freedom fighters; gazetted July fighters | Tk 5,50,000 | Tk 6,00,000 |
A parent or guardian of a person with a disability gets an extra Tk 50,000 for each such child or dependant. If both parents are taxpayers, only one can claim it.
Income tax slab rates
Income above the tax-free limit is taxed in slabs:
| Taxable income above the tax-free limit | Rate |
|---|---|
| First Tk 3,00,000 | 10% |
| Next Tk 4,00,000 | 15% |
| Next Tk 5,00,000 | 20% |
| Next Tk 20,00,000 | 25% |
| Balance | 30% |
From AY 2028-29 the 30% band is capped at the next Tk 2,63,50,000, and any income above that is taxed at 35%.
How salary tax is calculated
- Add up your gross salary for the year, including bonuses and benefits.
- Deduct the tax-free part: one-third of your salary or Tk 5,00,000, whichever is lower.
- Add any other income, such as rent, business income or interest.
- Apply the slab rates to the total above your tax-free limit.
- Deduct the investment rebate, then compare the result with the minimum tax.
Your employer deducts the expected tax from your salary each month and pays it to the government on your behalf.
Investment rebate and minimum tax
The investment rebate is the lowest of three amounts: 3% of your taxable income, 10% of your eligible investments and donations, or Tk 7,50,000. Eligible investments include savings certificates (counted up to Tk 5,00,000), DPS (up to Tk 1,20,000 a year), recognised provident fund contributions, life insurance premiums, and listed shares and mutual funds.
If your income is above the tax-free limit, you pay at least Tk 5,000, even after the rebate. A first-time taxpayer pays at least Tk 1,000.
Worked examples
Example 1: salary of Tk 12,00,000, general taxpayer, no investments. The tax-free part of salary is Tk 4,00,000 (one-third), so taxable income is Tk 8,00,000. The first Tk 4,00,000 is tax-free; the next Tk 3,00,000 at 10% is Tk 30,000; the remaining Tk 1,00,000 at 15% is Tk 15,000. Total tax: Tk 45,000, or Tk 3,750 a month.
Example 2: the same salary, with Tk 1,00,000 in savings certificates. The rebate is the lowest of Tk 24,000 (3% of Tk 8,00,000), Tk 10,000 (10% of the investment) and Tk 7,50,000, so Tk 10,000. Tax falls to Tk 35,000.
Example 3: a woman with the same salary and no investments. Her tax-free limit is Tk 4,50,000, leaving Tk 3,50,000 to tax: Tk 30,000 on the first Tk 3,00,000 and Tk 7,500 on the next Tk 50,000. Total tax: Tk 37,500.
Try your own figures in the income tax calculator. It also covers the net wealth surcharge, filing-date adjustments and monthly salary TDS.
Net wealth surcharge
If your net wealth at the end of the year is over Tk 4 crore, a surcharge is added to your tax: 10% for net wealth over Tk 4 crore (or if you own more than one car, or house property over 8,000 sq ft), 20% over Tk 10 crore, 30% over Tk 20 crore and 35% over Tk 50 crore.
Common questions
What is the income tax rate in Bangladesh? For individuals it is 0% up to the tax-free limit, then 10%, 15%, 20%, 25% and 30% on successive slabs of income.
What is the tax-free income limit for 2026-27? Tk 4,00,000 for general taxpayers, Tk 4,50,000 for women and senior citizens, and more for persons with disabilities, third-gender taxpayers and gazetted freedom and July fighters.
Is all of my salary taxable? No. One-third of your salary, up to Tk 5,00,000, is tax-free.
This guide is general information based on the Finance Act 2026. Rules can change by SRO or general order; please talk to us before you file.
About the publisher. Habib Sarwar Bhuiyan & Co. is a firm of chartered accountants in Gulshan, Dhaka, in practice since 1993 and enlisted with ICAB, FRC and the BSEC Panel of Auditors. For advice on this topic, see our tax & VAT page or contact a partner.