How Bangladesh income tax works
Understand assessment years, tax slabs, tax-free thresholds and rebates for resident individual taxpayers in Bangladesh.
Content reviewed: September 2026
Assessment year vs fiscal year
In Bangladesh, income earned during a fiscal year (FY, ending 30 June) is assessed in the following assessment year (AY). For example, income earned in FY 2024-25 is assessed in AY 2025-26.
Tax-free threshold and slabs
Every resident individual has a tax-free threshold. Income above it is taxed progressively — the first bracket above the threshold is taxed at a low rate, and higher brackets are taxed at higher rates. The exact thresholds differ by taxpayer type (for example, female, senior citizens and persons with disability get higher thresholds).
| Taxable income (general taxpayer, AY 2025-26) | Rate |
|---|---|
| Up to ৳350,000 | 0% |
| Next ৳100,000 | 5% |
| Next ৳300,000 | 10% |
| Next ৳400,000 | 15% |
| Next ৳500,000 | 20% |
| Next ৳500,000 | 25% |
| Above | 30% |
Rebates and minimum tax
Qualifying investments can earn a rebate that reduces computed tax (a simplified 10% rebate capped at ৳100,000 is used in the calculator). Where income exceeds the threshold, a minimum tax (৳5,000 general, ৳3,000 for female, senior and disabled taxpayers) applies even if the computed tax is lower.
Why you should verify
Slabs, thresholds and rebates change with each Finance Act. Always confirm the current assessment year’s rules with official NBR publications before filing.
Apply it to your pay with the Salary Calculator for gross-to-net pay, or read how to calculate take-home salary. Estimate your own liability with the Income Tax Calculator.