CodeKitHubWhat Is This Tool?
This tool estimates individual income tax in Bangladesh for Assessment Year 2026-27 (Income Year 2025-26). Tax is charged only on income above a tax-free threshold, which varies by taxpayer category: BDT 400,000 for general taxpayers, BDT 450,000 for women and people aged 65 or above, BDT 525,000 for persons with disability or third-gender taxpayers, and BDT 550,000 for gazetted war-wounded freedom fighters.
Income above the threshold is taxed progressively: 10% on the next BDT 300,000, 15% on the next BDT 400,000, 20% on the next BDT 500,000, 25% on the next BDT 2,000,000, and 30% on anything beyond that. A notable recent change is that the previous 5% introductory slab has been abolished — the first taxable slab now starts at 10% directly above the threshold. If any tax is owed, a minimum tax of BDT 5,000 applies even if the slab calculation gives a smaller figure.
Source: PwC Worldwide Tax Summaries — Bangladesh, Individual: Taxes on personal income.
Why Use It?
- Uses the current Assessment Year 2026-27 thresholds and slab rates, including the abolished 5% introductory slab.
- Covers all four taxpayer categories with their own exemption thresholds — general, women/senior, disability/third-gender, and freedom fighters.
- Applies the BDT 5,000 minimum tax floor automatically when it applies.
- Shows taxable income, annual tax, and an average net monthly salary in one view.
- Free and instant — nothing you enter is uploaded, all calculation happens in your browser.
How to Use
- Enter your annual gross salary in BDT.
- Select your taxpayer category to apply the correct tax-free threshold.
- Read the estimated annual tax, taxable income, and net salary (annual and average monthly).
Example
Input
Annual gross salary BDT 800,000, general taxpayerOutput
Taxable income ৳400,000, estimated tax ৳45,000, net annual salary ৳755,000Taxable income = 800,000 − 400,000 (general threshold) = 400,000. The first 300,000 of that is taxed at 10% (30,000), and the remaining 100,000 at 15% (15,000), for a total of 45,000 — well above the 5,000 minimum tax floor, so the slab calculation applies as-is.
Tax slab table (above the applicable threshold)
| Income band | Rate |
|---|---|
| Next BDT 300,000 | 10% |
| Next BDT 400,000 | 15% |
| Next BDT 500,000 | 20% |
| Next BDT 2,000,000 | 25% |
| Remaining income | 30% |
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Frequently Asked Questions
What is the current tax-free income threshold in Bangladesh?
For Assessment Year 2026-27, the general tax-free threshold is BDT 400,000. Women and people aged 65 or above get BDT 450,000, persons with disability or third-gender taxpayers get BDT 525,000, and gazetted war-wounded freedom fighters get BDT 550,000.
Has the 5% tax slab really been removed?
Yes. Previously the first BDT 100,000 of taxable income above the threshold was taxed at 5%. That introductory slab has been abolished for the current assessment year, so the first taxable slab now starts directly at 10%.
What is the minimum tax, and when does it apply?
If your calculated tax (after applying the threshold and slab rates) comes out to less than BDT 5,000, but you still owe some tax at all, you pay the BDT 5,000 minimum instead of the smaller slab-calculated amount. This tool applies that floor automatically.
Does this calculator account for tax rebates, allowances, or provident fund contributions?
No — this is a simplified estimate based on gross salary and taxpayer category only. It doesn't account for investment tax rebates, house rent or medical allowance exemptions, provident fund contributions, or surcharge on high net wealth, all of which can lower your actual tax payable. For a return-ready figure, consult the National Board of Revenue (NBR) or a tax advisor.
Is my salary data uploaded anywhere?
No. All calculation happens locally in your browser using JavaScript — nothing you enter is sent to a server or stored.