How is Bangladesh income tax calculated?

Bangladesh uses progressive slabs set by the NBR. For a general taxpayer the first BDT 350,000 is tax-free; income above is taxed at rising rates of 5%, 10%, 15%, 20%, 25% and (from income year 2024-25) 30%. Only the income within each slab is taxed at that slab’s rate.

What is the tax-free threshold in Bangladesh?

For a general taxpayer the tax-free threshold is BDT 375,000 from assessment year 2026-27 (Finance Act 2025), up from BDT 350,000 in 2024-25 and 2025-26 and BDT 300,000 in 2023-24. Women and senior citizens aged 65+, persons with disabilities and freedom fighters get higher exemptions still.

What is the new 30% top tax rate?

The Finance Act 2024 added a 30% top rate on income above BDT 3,850,000, effective from income year 2024-25 (assessment year 2025-26). The Finance Act 2025 restructured the slabs from AY 2026-27 — removing the 5% entry slab and shifting the 30% tier to income above BDT 3,575,000. In 2023-24 and 2024-25 the top rate was 25%. Use the year selector to compare.

Does Bangladesh have a provincial or state income tax?

No. Personal income tax in Bangladesh is national only, collected by the National Board of Revenue (NBR). There is no state or provincial income tax, so your NBR slab tax is the full income tax picture for an individual.

Can I use this for previous assessment years?

Yes. Use the year selector to view assessment years 2023-24, 2024-25, 2025-26 or 2026-27 — 2026-27 is the latest. The slabs and thresholds changed, so the tax on the same income differs — for example BDT 1,000,000 is taxed BDT 67,500 in 2025-26 but BDT 78,750 in 2026-27, because the Finance Act 2025 removed the 5% entry slab even as it raised the tax-free threshold to BDT 375,000.

What is not included in this estimate?

This tool models only the general-taxpayer slabs. It excludes the investment tax rebate (up to 15% of eligible investment, which can lower your tax), the BDT 3,000–5,000 minimum tax, the net-wealth surcharge, capital gains, allowances, and higher exemptions for women, seniors and others. Consult the NBR or a tax adviser for exact figures.

Bangladesh Income Tax Calculator

Enter your annual income in taka to estimate your NBR income tax, effective rate, marginal rate and take-home pay using the general-taxpayer slabs for multiple years.

Updated June 2026

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Tax Calculator

Bangladesh — 2026 Tax Year

2026 Tax Year

Tax Year

Select the tax year to view applicable rules and rates

This is an estimate. Consult a tax professional for accurate calculations.

Annual Gross Income (৳ BDT)

Filing Status

Enter your income to calculate

Fill in your gross income and filing status, then calculate to see your tax breakdown.

How to use Bangladesh Income Tax Calculator

This Bangladesh income tax calculator estimates your NBR personal income tax for a general taxpayer based on your annual income and the assessment year you select. Bangladesh uses progressive slabs in taka (BDT): the first part of your income is tax-free, and only the income within each higher slab is taxed at that slab’s rate. Choose 2026 (AY 2026-27, income year 2025-26), 2025 (AY 2025-26, income year 2024-25), 2024 (AY 2024-25, income year 2023-24) or 2023 (AY 2023-24, income year 2022-23). The 2026 year applies the Finance Act 2025 restructure — a higher BDT 375,000 tax-free threshold and removal of the 5% entry slab — while keeping the 30% top tier. You get your effective rate, marginal rate, a slab-by-slab breakdown and an estimated take-home figure.

Select your assessment year (2023, 2024, 2025, or 2026) from the dropdown.
Enter your annual taxable income in taka (BDT).
Keep the filing status as Individual — these are the general-taxpayer slabs.
Click Calculate to see your income tax, effective rate and marginal rate.
Review the slab-by-slab breakdown and your estimated take-home pay.

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How Bangladesh income tax slabs work

Bangladesh uses progressive slabs that tax only the income within each band, not your whole income. On BDT 800,000 in income year 2024-25 you pay nothing on the first BDT 350,000, 5% on the next BDT 100,000 (BDT 5,000) and 10% on the next BDT 350,000 (BDT 35,000) — about BDT 40,000 in total, an effective rate of just 5% even though your marginal rate is 10%. The tax-free threshold shown here is for a general taxpayer; women and senior citizens get a higher exemption.

Income year 2024-25 (AY 2025-26) general-taxpayer slabs — Finance Act 2024
Total Income (BDT)	Tax Rate	Band
First 350,000	0%	Tax-free threshold
350,001 – 450,000	5%	Next 100,000
450,001 – 850,000	10%	Next 400,000
850,001 – 1,350,000	15%	Next 500,000
1,350,001 – 1,850,000	20%	Next 500,000
1,850,001 – 3,850,000	25%	Next 2,000,000
Above 3,850,000	30%	New top tier (Finance Act 2024)

The new 30% top tier

For income year 2024-25 (AY 2025-26) the Finance Act 2024 added a 30% top rate on income above BDT 3,850,000, sitting above the 25% band that covers the BDT 1,850,001–3,850,000 range. In the earlier years (AY 2024-25 and AY 2023-24) the top rate was 25%. The effect only shows at high incomes: on BDT 5,000,000 the tax is about BDT 1,065,000 under the 2025 slabs versus BDT 1,007,500 under the 2024 slabs — roughly BDT 57,500 more because of the 30% tier.

Investment rebate, minimum tax and what is not modelled

Bangladesh offers an investment tax rebate (up to 15% of eligible investment such as DPS, life insurance or savings certificates) that can materially cut your tax — this calculator does NOT apply it, so your real bill may be lower. It also does not model the minimum tax of BDT 3,000–5,000 for taxpayers in city-corporation or municipal areas, the net-wealth surcharge, capital gains, or higher exemption thresholds for women, seniors, persons with disabilities and freedom fighters. Bangladesh has no broad employee social-security payroll deduction, so take-home is simply income minus tax.

Effective versus marginal tax rate

Your effective tax rate is total tax divided by total income — your true average. Your marginal rate is the rate on your next taka, set by the highest slab you reach. On BDT 1,500,000 in income year 2024-25 your marginal rate is 20%, but because the first BDT 350,000 is tax-free and the lower slabs use smaller rates, your effective rate is only about 10%. Knowing the difference helps with decisions about bonuses, overtime and investment-rebate planning.

Worked examples

Individual, BDT 800,000, income year 2024-25

Inputs: BDT 800,000 income

Result: ~BDT 40,000 tax · 5.0% effective · 10% marginal

Individual, BDT 1,500,000, income year 2024-25

Inputs: BDT 1,500,000 income

Result: ~BDT 150,000 tax · 10.0% effective · 20% marginal

Individual, BDT 5,000,000, income year 2024-25

Inputs: BDT 5,000,000 income

Result: ~BDT 1,065,000 tax · 21.3% effective · 30% marginal

Glossary

NBR: National Board of Revenue — Bangladesh’s tax authority, which administers income tax.
Assessment year (AY): The year in which income is assessed; AY 2025-26 assesses income earned in income year 2024-25.
Income year: The 1 July – 30 June period in which income is earned, assessed in the following assessment year.
Tax-free threshold: The income on which a general taxpayer pays no tax — BDT 350,000 (BDT 300,000 in AY 2023-24).
Investment tax rebate: A credit of up to 15% of eligible investment that reduces tax payable; not auto-applied by this tool.
Effective tax rate: Total tax owed divided by total income — your true average tax rate.
Marginal tax rate: The rate applied to your next taka of income, set by the highest slab you reach.
Finance Act: The annual budget law that sets each year’s slabs and rates from 1 July.

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