Income tax slab in Bangladesh
Stay updated with the latest income tax slabs in Bangladesh for 2025-26. Learn about tax-free limits, progressive rates (5% to 30%), and minimum tax requirements.
1. Individual Income Tax Rates (AY 2025–26)
The tax structure in Bangladesh is progressive, meaning higher income earners pay a higher percentage. For the Assessment Year 2025–26, the tax-free limit has been increased to provide relief to lower-income groups.
Tax-Free Thresholds
| Income tax slab Category in Bangladesh | Tax-Free Limit (BDT) |
| General Taxpayers (Male) | 3,50,000 |
| Female & Senior Citizens (65+) | 4,00,000 |
| Third-Gender Individuals & Persons with Disabilities | 4,75,000 |
| War-wounded Freedom Fighters | 5,00,000 |
Note: Parents of disabled children receive an additional BDT 50,000 exemption per child.
Income Tax Slabs
Once the tax-free limit is crossed, the following slabs apply:
| Income Tax Slabs | Percentage/Rate |
| First BDT 3,50,000 | 0% |
| Next BDT 1,00,000 | 5% |
| Next BDT 4,00,000 | 10% |
| Next BDT 5,00,000 | 15% |
| Next BDT 5,00,000 | 20% |
| Next BDT20,00,000 | 25% |
| Remaining | 30% |
Proposed: Assessment Year 2026–2027
(For income earned starting July 2025)
| Taxable Income Slab (BDT) | Tax Rate |
| First 375,000 | 0% (Tax-Free) |
| Next 300,000 | 10% |
| Next 400,000 | 15% |
| Next 500,000 | 20% |
| Next 2,000,000 | 25% |
| On the Remaining Balance | 30% |
2. Special Tax-Free Thresholds
Different categories of taxpayers enjoy higher tax-free limits.
| Category | AY 2025–26 Limit | AY 2026–27 Limit |
| General Taxpayers (Male) | BDT 350,000 | BDT 375,000 |
| Women & Senior Citizens (65+) | BDT 400,000 | BDT 425,000 |
| Physically Challenged / Third Gender | BDT 475,000 | BDT 500,000 |
| Gazetted War-Wounded Freedom Fighters | BDT 500,000 | BDT 525,000 |
3. Minimum Tax Payable
If your total income exceeds the tax-free limit, you must pay a minimum amount of tax based on your residence. For the AY 2026–27, a flat minimum tax of BDT 5,000 is proposed for all existing taxpayers regardless of location, while new taxpayers may only pay BDT 1,000.
| Region | Minimum Income Tax (Current) |
| Dhaka North/South & Chattogram City Corp. | BDT 5,000 |
| Other City Corporations | BDT 4,000 |
| Outside City Corporation Areas | BDT 3,000 |
4. Key Exemptions & Rebates
Standard Deduction: For salaried individuals, one-third (1/3) of their total employment income or BDT 500,000 (whichever is lower) is exempted from tax.
Investment Tax Rebate: You can reduce your tax liability by investing in approved sectors (e.g., Savings Certificates, Stock Market, DPS). The rebate is the lowest of:
3% of your total taxable income.
15% of your actual investment.
BDT 1,000,000 (10 Lakh).
5. Wealth Surcharge
If your net wealth exceeds BDT 4 Crore, a surcharge is applied to your total tax payable:
BDT 4 Crore – 10 Crore: 10% Surcharge
BDT 10 Crore – 20 Crore: 20% Surcharge
BDT 20 Crore – 50 Crore: 30% Surcharge
Above BDT 50 Crore: 35% Surcharge
In conclusion, navigating the income tax slabs in Bangladesh for the 2025-2026 assessment year requires a clear understanding of the progressive tax system and the various exemption thresholds. With the tax-free limit for general taxpayers now at 350,000 BDT (and set to increase in the coming year), it is vital for citizens to stay informed about NBR’s latest updates. Filing your taxes accurately and on time is not just a legal obligation but a contribution to the nation’s economic growth. To avoid penalties and ensure you benefit from all applicable rebates, consider consulting a tax professional for complex filings.
Editing by-
Rajan Kumer Debnath
Income Tax and VAT Adviser
Member: Dhaka Taxes Bar Association
Chamber 01:House # 05 ( 2nd Floor), Road # 06 Cell: 01727-546514 | Chamber 02:1216, PressClub Road, Kharompattri Cell: 01727-546514 |
