Global
EMI Loan Calculator
Monthly instalment, total interest & amortization for any loan.
NBR 2025-26 · AY 2026-27 · Investment Rebate
Bangladesh Income Tax Calculator 2025-26
Estimate your Bangladesh personal income tax for income year 2025-26 / assessment year 2026-27 using updated NBR slabs, taxpayer categories, investment rebate, minimum tax, and AIT.
Last reviewed: May 2026. This calculator is for general planning only and is not tax advice.
How to Use
- 1Choose your taxpayer category to apply the correct tax-free limit.
- 2Enter annual salary, house rent, medical, and transport allowances.
- 3Enter eligible investment amount for rebate calculation.
- 4Enter any Advance Income Tax (AIT) already deducted.
- 5Review taxable income, slab breakdown, rebate, and final payable amount.
- 6Use the result as a planning estimate — verify final values with NBR guidance.
Example Calculation
- Annual basic salary: BDT 6,00,000
- House rent allowance: BDT 2,40,000
- Medical allowance: BDT 60,000
- Eligible investment: BDT 50,000
The calculator estimates taxable income, applies 2025-26 slab rates, deducts eligible rebate (lowest of 3% of income, 15% of investment, BDT 10 lakh), and applies the BDT 5,000 minimum tax rule.
How It Works
Allowance exemptions are deducted from gross income to get taxable income. Progressive NBR slabs are applied to taxable income above the tax-free limit. The investment rebate is then subtracted. If the result is below BDT 5,000, the minimum tax applies. AIT is subtracted last to get final payable.
Formula & Calculation Method
Gross Income = Basic + HRA + Medical + Transport + Other allowances
Exempt HRA = min(actual HRA, 50% of basic, BDT 25,000/month)
Exempt Medical = min(actual medical, 10% of basic, BDT 10,000/month)
Exempt Transport = min(actual transport, BDT 30,000/year)
Taxable Income = Gross Income − Total Exemptions
Slab Tax = Progressive tax on (Taxable Income − Tax-free limit)
Rebate = min(3% × Gross, 15% × Investment, BDT 10,00,000)
Tax Liability = max(Slab Tax − Rebate, BDT 5,000 minimum tax)
Payable = max(0, Tax Liability − AIT)
| Income Slab (above tax-free limit) | Tax Rate | Max Tax in Slab |
|---|---|---|
| Up to tax-free limit | 0% | Nil |
| Next BDT 3,00,000 | 10% | BDT 30,000 |
| Next BDT 4,00,000 | 15% | BDT 60,000 |
| Next BDT 5,00,000 | 20% | BDT 1,00,000 |
| Next BDT 20,00,000 | 25% | BDT 5,00,000 |
| Remaining income | 30% | No limit |
| Taxpayer Category | Tax-Free Limit (AY 2026-27) |
|---|---|
| General taxpayer | BDT 3,75,000 |
| Woman / Senior citizen (65+) | BDT 4,25,000 |
| Physically challenged / Third gender | BDT 5,00,000 |
| Gazetted freedom fighter | BDT 5,25,000 |
References & Data Sources
- National Board of Revenue (NBR), Bangladesh — Income Tax Ordinance 1984 as amended by Finance Act 2025 (income year 2025-26 slabs and exemptions).
- NBR SRO on allowance exemptions — house rent (50% of basic, max BDT 25,000/month), medical (10% of basic, max BDT 10,000/month), transport (max BDT 30,000/year).
- Finance Act 2025, Schedule — investment rebate rates and eligible instruments including Sanchayapatra, DPS, life insurance, and approved provident funds.
- NBR Tax-Free limit circular AY 2026-27 — taxpayer category thresholds and minimum tax of BDT 5,000.
Tax rules change annually with the national budget. Always verify current figures with NBR (nbr.gov.bd) or a chartered accountant before filing. Last reviewed: May 2026.
Tax Planning Tips for Bangladesh
- 1Keep salary certificates, allowance breakdowns, investment receipts, and AIT documents together before the November filing deadline.
- 2Invest in approved instruments (Sanchayapatra, DPS, provident fund, life insurance) before 30 June to maximise your rebate for the current year.
- 3Verify your taxpayer category — women, seniors (65+), and physically challenged individuals are entitled to higher tax-free limits.
- 4Check your payslip to confirm how much AIT your employer deducts monthly — enter this accurately to avoid overpaying.
- 5If you have income from multiple sources (salary, rental, business), declare all of it — NBR's systems increasingly cross-check with bank and property data.
- 6File your return by 30 November 2026 — late filing attracts a penalty of 2% per month on the unpaid tax amount.
Frequently Asked Questions
What are the Bangladesh income tax slabs for income year 2025-26?
For income year 2025-26 (AY 2026-27), the general tax-free limit is BDT 3,75,000. Above that: next BDT 3,00,000 at 10%; next BDT 4,00,000 at 15%; next BDT 5,00,000 at 20%; next BDT 20,00,000 at 25%; remaining income at 30%. These are progressive slabs — only the income within each band is taxed at that rate.
What are the tax-free limits for different taxpayer categories?
NBR sets different tax-free thresholds by category: General taxpayers BDT 3,75,000; Women and senior citizens aged 65+ BDT 4,25,000; Physically challenged and third-gender individuals BDT 5,00,000; Gazetted freedom fighters BDT 5,25,000. Income below these thresholds is completely tax-free.
How is the investment tax rebate calculated for 2025-26?
The rebate is the lowest of three amounts: (1) 3% of total income, (2) 15% of actual eligible investment amount, or (3) BDT 10,00,000 maximum. Eligible investments include approved savings instruments (Sanchayapatra), life insurance premiums, approved provident fund contributions, and DPS deposits in scheduled banks.
What is the minimum tax and when does it apply?
A minimum tax of BDT 5,000 applies when your taxable income exceeds your applicable tax-free limit but your computed tax (after rebate) is less than BDT 5,000. In that case, you pay the higher of the two — ensuring a minimum contribution. The minimum tax does not apply if your income is below the tax-free threshold.
How do house rent, medical, and transport allowances reduce taxable income?
NBR allows specific exemptions: House Rent Allowance — exempt up to 50% of basic salary or BDT 25,000/month, whichever is lower. Medical Allowance — exempt up to 10% of basic or BDT 10,000/month, whichever is lower. Transport Allowance — exempt up to BDT 30,000 per year. Amounts above these limits become part of taxable income.
What is Advance Income Tax (AIT) and how does it reduce my bill?
AIT is income tax already deducted by your employer from monthly salary, or deducted at source on bank interest, investment returns, or other income. When filing your return, AIT is subtracted from your total tax liability. If AIT exceeds your liability, you can claim a refund from NBR.
Related Guides & Articles
9 min read
Income Tax Slab Rates Bangladesh 2025-26: NBR Rules Explained
Complete guide to Bangladesh income tax for 2025-26. Covers NBR slab rates, tax-free threshold, investment rebate, AIT, and minimum tax - with worked examples.
6 min read
Salary Calculator Bangladesh: Understanding Your Take-Home Pay
How income tax, provident fund, and other deductions affect your actual take-home salary in Bangladesh. Includes worked examples for different salary levels.