Income Tax Calculator (Bangladesh)
This calculator applies Bangladesh's current income tax law — the Finance Act 2026 slabs with the Tk 400,000 tax-free threshold, not the superseded Tk 375,000 or the two-years-old Tk 350,000 most calculators still use. It handles the salaried exemption (lower of one-third of salary or Tk 5 lakh), category thresholds, the investment rebate, and the flat minimum-tax floor that applies even after the rebate. Everything runs in your browser; your salary never leaves your device.
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Why most Bangladesh tax calculators are wrong right now
Bangladesh changed its income tax twice in twelve months, and the second change is the one the internet missed. The June 2025 Finance Ordinance set the tax-free threshold at Tk 375,000 and abolished the 5% slab; then the June 2026 Finance Act — effective 1 July 2026 — amended that threshold to Tk 400,000 (with every category threshold rising Tk 25,000), cut the investment rebate, and legislated future-year tables. Returns being filed from July to November 2026, for income year 2025–26, use the Tk 400,000 figure.
The consequence: a calculator showing Tk 375,000 is quoting the superseded ordinance, and one showing Tk 350,000 is two full years stale — and in an audit of the pages ranking for this query, not one implemented the post-Finance-Act-2026 law in full. On a Tk 60,000 monthly salary the stale tables overstate tax by Tk 2,500 a year; on higher salaries, by more. This page's figures come from NBR's own Income Tax Paripatra and the Finance Act 2026 coverage, with the verification date shown, and will be re-checked against NBR's next paripatra when it publishes.
The current slabs and thresholds
Above the tax-free threshold, income is taxed progressively: the next Tk 300,000 at 10%, then Tk 400,000 at 15%, Tk 500,000 at 20%, Tk 2,000,000 at 25%, and the balance at 30%. The threshold depends on who you are: Tk 400,000 for general taxpayers, Tk 450,000 for women and anyone 65 or older, Tk 525,000 for persons with disability and third-gender taxpayers, and Tk 550,000 for gazetted freedom fighters and July fighters — with an extra Tk 50,000 for a parent or guardian of a child with disability.
Salaried income gets a structural break before the slabs even start: one-third of employment income is exempt, capped at Tk 500,000. A Tk 720,000 annual salary is therefore taxed on Tk 480,000, not the full amount. The Finance Act 2026 also pre-announced the future: from income year 2027–28 the threshold steps to Tk 450,000 and a 35% top band arrives for income above Tk 3 crore — legislated ahead, but not what you file with today, which is why this calculator applies the current-year table and mentions the future one only here.
| Band | Rate |
|---|---|
| First Tk 400,000 (general threshold) | 0% |
| Next Tk 300,000 | 10% |
| Next Tk 400,000 | 15% |
| Next Tk 500,000 | 20% |
| Next Tk 2,000,000 | 25% |
| Balance | 30% |
The rebate, and the minimum-tax floor most calculators miss
Investing reduces the bill: the rebate is the lowest of 3% of your rebate-eligible income, 10% of your eligible investment (DPS deposits, listed securities, government sanchayapatra, life-insurance premiums and similar), or Tk 750,000 — the Finance Act 2026 cut this from the old 15% and Tk 10 lakh cap, another place stale calculators overstate your savings.
Then comes the rule that separates correct calculators from the rest: the minimum tax. Anyone whose income exceeds the threshold owes at least Tk 5,000 — Tk 1,000 for first-time taxpayers — and the paripatra states explicitly that this floor applies even when the investment rebate would take the liability lower or to zero. Location no longer matters: the old Dhaka/Chattogram versus elsewhere tiers (Tk 5,000/4,000/3,000) died with the 2025 reform. Our worked example: Tk 60,000 a month is Tk 8,000 of tax; add Tk 120,000 of DPS investment and the rebate of Tk 12,000 would wipe the bill — but the floor holds it at Tk 5,000. The calculator applies this automatically and tells you when it did.
Edge cases and limits
The calculator models salaried income; other income types ride the same slabs but without the salary exemption, and some income (certain capital gains, final-settlement withholding) follows separate final-tax rules outside this page. The wealth surcharge is also real but separate: taxpayers with net wealth above Tk 4 crore — or more than one motor car, or house property beyond 8,000 square feet — pay a surcharge of 10% to 35% on their income tax, by wealth band. It computes on the regular tax, not the minimum, and this page notes it rather than modelling the wealth statement it requires.
Two honest caveats. First, NBR's Paripatra for 2026–27 had not yet been published at verification time; the Finance Act 2026 figures here rest on the Act's coverage and PwC's summaries, and we re-verify the moment NBR's own circular lands. Second, this is a planning tool, not a filing: your return runs through NBR's systems with your documents, and an accountant earns their fee on anything beyond straightforward salary. What this page guarantees is narrower and useful: the current law's arithmetic, done correctly, with its sources named.
Frequently asked questions
What is the tax-free income limit in Bangladesh for 2025-26?
Tk 400,000 for general taxpayers — the Finance Act 2026 amendment that superseded the Tk 375,000 set a year earlier. Women and taxpayers 65 or older get Tk 450,000, persons with disability Tk 525,000, and gazetted freedom fighters Tk 550,000, plus Tk 50,000 extra for a parent of a child with disability. If a calculator or guide shows Tk 375,000 or Tk 350,000 as current, it predates the June 2026 budget. Above the threshold, at least the flat minimum tax of Tk 5,000 applies.
How is salary income taxed in Bangladesh?
One-third of your employment income is exempt first, capped at Tk 500,000 — so a Tk 720,000 annual salary is taxed on Tk 480,000. What remains passes through the slabs: nothing up to your threshold, then 10%, 15%, 20%, 25% and 30% bands. On Tk 60,000 a month that works out to Tk 8,000 of annual tax — roughly Tk 667 a month — before any investment rebate. The calculator does the whole chain and shows each step in the breakdown line.
How does the investment rebate work now?
The rebate is the lowest of three numbers: 3% of your rebate-eligible income, 10% of what you invested in eligible instruments (DPS up to Tk 120,000 a year, listed securities, government sanchayapatra, life-insurance premiums), or Tk 750,000. The Finance Act 2026 cut the middle figure from 15% and the cap from Tk 10 lakh, so older guides overstate the saving. One crucial catch: the rebate cannot take you below the flat minimum tax — Tk 5,000 — which applies whenever income exceeds the threshold.
What is the minimum tax in Bangladesh?
A flat Tk 5,000 a year for anyone whose income exceeds the tax-free threshold — reduced to Tk 1,000 for first-time taxpayers — regardless of where you live. The old location tiers (Tk 5,000 in Dhaka and Chattogram city corporations, Tk 4,000 in other city corporations, Tk 3,000 elsewhere) were abolished by the 2025 reform. The floor is absolute: NBR's paripatra states it applies even if the investment rebate would otherwise reduce your liability to zero, which is the detail most calculators get wrong.
Are these the current NBR tax rates?
They are the income year 2025–26 rules as amended by the Finance Act 2026, effective 1 July 2026 — verified on the date stamped in the results against NBR's published paripatra and the Act's professional coverage. NBR's own circular for the new assessment year had not yet been published at verification; when it lands (typically September), we re-check every figure against it. For filings, NBR's systems and your tax adviser are the authority — this page guarantees the arithmetic, honestly sourced.