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How personal income tax works in Bangladesh
Individual taxpayers pay progressive tax on their taxable income for the income year (1 July to 30 June). The first slab is tax-free; the rest is taxed in steps.
Income year 2026-27 (Finance Act 2026)
- Tax-free threshold: ৳4,00,000 (women and people aged 65+: ৳4,25,000; persons with disabilities and third-gender taxpayers: ৳5,00,000; gazetted war-wounded freedom fighters and July warriors: ৳5,25,000)
- Next ৳3,00,000 at 10% → next ৳4,00,000 at 15% → next ৳5,00,000 at 20% → next ৳20,00,000 at 25% → the rest at 30%
- The old 5% slab has been removed; minimum tax is a flat ৳5,000.
Income year 2025-26 (returns due 30 November 2026)
- Tax-free threshold: ৳3,50,000 (women and 65+: ৳4,00,000; disabled and third gender: ৳4,75,000; gazetted war-wounded freedom fighters: ৳5,00,000)
- Next ৳1,00,000 at 5% → ৳4,00,000 at 10% → ৳5,00,000 at 15% → ৳5,00,000 at 20% → ৳20,00,000 at 25% → the rest at 30%
- Minimum tax: ৳5,000 in Dhaka and Chattogram city corporations, ৳4,000 in other city corporations, ৳3,000 elsewhere.
Salary exemption
Salaried taxpayers can deduct the lower of one-third of salary income or ৳5,00,000 before tax is calculated.
Investment tax rebate
Eligible investments (DPS up to the limit, savings certificates, life insurance premium, approved stocks and funds, etc.) earn a rebate equal to the lowest of: 3% of taxable income, 15% of the eligible investment, or ৳10,00,000.
Rates come from the Finance Act and NBR guidance at the time of writing. Rules change in every budget — confirm with NBR or a tax practitioner before filing.