🇧🇩 Bangladesh · Guide

How Income Tax Works in Bangladesh

The Finance Act 2026 (FY 2026-27) changed Bangladesh's salary tax: the tax-free threshold rose to Tk 400,000, the old 5% starter bracket was abolished, and component-wise exemptions were replaced by a single employment exemption of 1/3 of income (max Tk 500,000). There is no mandatory social security deduction for private employees.

The 2026-27 slabs (annual)

Annual income (BDT)Rate
First 400,0000%
Next 300,00010%
Next 400,00015%
Next 500,00020%
Next 20,000,00025%
Balance30%

Worked example

Annual salary of Tk 1,200,000: exemption = 1,200,000 ÷ 3 = Tk 400,000. Taxable = 800,000. Tax = 10% × 300,000 + 15% × 100,000 = Tk 45,000/year (≈Tk 3,750/month).

Thresholds & minimum tax

General: Tk 400,000 · Women/seniors 65+: Tk 450,000 · Persons with disability: Tk 525,000 · War-wounded freedom fighters: Tk 550,000. A Tk 5,000 minimum tax applies to anyone above the threshold.

Try it: Bangladesh salary calculator →

Sources: NBR (nbr.gov.bd), Finance Act 2026. Estimate only — not tax advice.