About the Bangladesh Income Tax Calculator
This Bangladesh income tax calculator estimates personal income tax for resident individuals for tax year 2026-27 (income earned from 1 July 2026 to 30 June 2027), using the slab rates in Schedule 2 of the Finance Act 2026. The tax-free threshold rises to Tk 4,00,000 for most taxpayers, Tk 4,50,000 for women and taxpayers aged 65 or over, Tk 5,25,000 for third-gender taxpayers and persons with disabilities, and Tk 5,50,000 for gazetted war-wounded freedom fighters and gazetted injured July Warriors. Parents or guardians of a person with a disability get an extra Tk 50,000 per child.
Above the threshold, income is taxed at 10% on the next Tk 3 lakh, 15% on the next Tk 4 lakh, 20% on the next Tk 5 lakh, 25% on the next Tk 20 lakh and 30% on the rest. The calculator then applies the investment tax rebate — the lowest of 3% of taxable income, 10% of eligible investment and Tk 7,50,000 under the amended section 78 — and the minimum tax of Tk 5,000 (Tk 1,000 for a new taxpayer) once income is above the threshold.
Enter your total taxable income after exemptions (salaried people should first deduct the salary exemption allowed under the Income Tax Act 2023), your category and your eligible investments such as DPS, savings certificates, life insurance premiums and approved shares. The same rates also apply for tax year 2027-28. Tax deducted at source and advance tax can be set against the result.
With the default inputs, the net tax payable is Tk 95,000.00. Change any value above to recalculate instantly.
How to use the bangladesh income tax calculator
- 1Enter your total taxable income for the tax year.
- 2Pick your taxpayer category and any dependants with a disability.
- 3Enter the eligible investments you made during the year.
- 4Tick new taxpayer if this is your first return.
- 5Read your net tax, rebate and the slab-by-slab breakdown.
Formula and method
Taxable income is split into slabs. The first slab up to your tax-free limit is taxed at 0%, then the next Tk 3,00,000 at 10%, the next Tk 4,00,000 at 15%, the next Tk 5,00,000 at 20%, the next Tk 20,00,000 at 25% and everything above at 30%. Each slab’s tax is added up to get tax before rebate.
The investment tax rebate is deducted next. After the Finance Act 2026 amendments to section 78 of the Income Tax Act 2023, it is the lowest of 3% of taxable income, 10% of eligible investment and Tk 7,50,000. If income is above the tax-free limit, the final tax cannot be lower than the minimum tax of Tk 5,000, or Tk 1,000 for a new taxpayer. Income taxed at reduced or final rates, and tax already deducted at source, are not modelled.
- Threshold
- Tax-free limit: Tk 4,00,000 general, more for specified categories
- Rebate
- Investment tax rebate under section 78
- Minimum tax
- Tk 5,000 (Tk 1,000 for new taxpayers) when income exceeds the limit
Worked examples
Tk 12 lakh income, Tk 1.5 lakh investment
After the Tk 4 lakh tax-free slab, Tk 3 lakh at 10% is Tk 30,000, Tk 4 lakh at 15% is Tk 60,000 and the last Tk 1 lakh at 20% is Tk 20,000, a total of Tk 1,10,000. The rebate is the lowest of 3% of income (Tk 36,000) and 10% of the Tk 1.5 lakh investment (Tk 15,000), leaving Tk 95,000 to pay.
Woman taxpayer earning Tk 6 lakh
A woman’s tax-free limit is Tk 4.5 lakh, so Tk 1.5 lakh is taxed at 10% = Tk 15,000. A Tk 1 lakh investment gives a Tk 10,000 rebate, leaving Tk 5,000 — exactly the minimum tax.
High earner on Tk 50 lakh
Slab tax is Tk 30,000 + Tk 60,000 + Tk 1,00,000 + Tk 5,00,000 (25% on Tk 20 lakh) + Tk 4,20,000 (30% on the last Tk 14 lakh) = Tk 11,10,000. The rebate is capped at 3% of income, Tk 1,50,000, leaving Tk 9,60,000.
Just above the limit with no investment
Only Tk 20,000 is above the Tk 4 lakh limit, giving Tk 2,000 of tax, but because income exceeds the tax-free limit the minimum tax of Tk 5,000 applies.
Frequently asked questions
What is the tax-free income limit in Bangladesh for 2026-27?+
Tk 4,00,000 for most individuals. It is Tk 4,50,000 for women and people aged 65 or over, Tk 5,25,000 for third-gender taxpayers and persons with disabilities, and Tk 5,50,000 for gazetted war-wounded freedom fighters and injured July Warriors.
What are the income tax slabs in Bangladesh for 2026-27?+
After the tax-free limit: 10% on the next Tk 3 lakh, 15% on the next Tk 4 lakh, 20% on the next Tk 5 lakh, 25% on the next Tk 20 lakh and 30% on the remaining income.
How is the investment tax rebate calculated?+
From 2026-27 the rebate is the lowest of 3% of taxable income, 10% of your eligible investment and Tk 7,50,000. Eligible investments include DPS, savings certificates, life insurance premiums and listed shares, among others.
What is the minimum tax in Bangladesh?+
If your income is above the tax-free limit, you must pay at least Tk 5,000 for 2026-27, wherever you live. A new taxpayer filing for the first time pays a minimum of Tk 1,000.
What is the deadline for filing an income tax return?+
For individuals, the normal return deadline (tax day) is 30 November after the end of the tax year, so returns for 2026-27 are due by 30 November 2027 unless the NBR extends it.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.