Bangladesh Income Tax Calculator (Salaried & Individual)

About the Bangladesh Income Tax Calculator (Salaried & Individual)

Work out your Bangladesh income tax the way NBR’s return does it: add your income from salary, rent, agriculture, business, interest and other sources; take off the tax-free part of a private-sector salary; apply the slab rates of the Finance Act, 2026 from the tax-free threshold of your category; deduct the investment rebate; check the minimum tax; and add the wealth surcharge where your net wealth calls for it. The result shows the tax for the year, what is left to pay with your return after tax deducted at source, the incentive or additional tax for the month you file in, and the tax your employer deducts from your salary each month.

Every rule comes from NBR’s Income Tax Circular on the Finance Act, 2026 and its Income Tax Guide for individuals, and the calculator reproduces their worked examples of salaries, rebates, the minimum tax and the surcharge to the taka. Amounts are written the way NBR prints them (Tk 4,00,000); you can switch to international grouping. Nothing you type leaves your browser. Without a pass the page shows a free preview of your own result: the income tax for the year, with the first rows of each table, while every other figure stays hidden until you unlock it with a Pro pass.

Tax-free thresholds and slab rates

The Finance Act, 2026 (Schedule 2) taxes resident individuals, non-resident Bangladeshis and Hindu undivided families as follows:

• the first Tk 4,00,000 at 0%;
• 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%;
• the rest at 30%.

The first band is wider for some taxpayers: Tk 4,50,000 for women and anyone aged 65 or over, Tk 5,25,000 for third-gender taxpayers and persons with disability, and Tk 5,50,000 for gazetted war-wounded freedom fighters and gazetted “July warriors” injured in the July uprising. A parent or legal guardian of a child or ward with a disability gets Tk 50,000 more for each such child; when both parents pay tax, only one of them claims it. The other bands keep their widths, so the whole ladder moves up, as NBR’s examples show. The same Act already sets higher thresholds and a 35% band above Tk 3 crore for the following tax years; the calculator holds them too. These rates do not apply to income from making cigarettes, bidi, jarda, gul and other tobacco products, which is taxed separately.

Salary: what is taxed

Income from employment includes basic pay, allowances, bonuses, perquisites and benefits (a car, a house) at the values the law sets. For a private-sector or other employee, one-third of that income, at most Tk 5,00,000, is exempt (Sixth Schedule, Part 1, paragraph 27 of the Income Tax Act, 2023). An employee on the government pay scale is taxed only on basic pay, festival allowance and bonus; the listed allowances are exempt and the one-third rule does not apply (Income Tax Guide). Group insurance premiums an employer pays, and medical costs a group insurer reimburses, are not salary income.

The investment rebate

Section 78, as the Finance Act, 2026 amended it (circular section 32), gives a rebate on the tax: the lowest of 3% of your total income (leaving out exempt income, income taxed at a reduced or final rate and a share of a firm’s income), 10% of what you invested and spent on the items of the Sixth Schedule, Part 3, and Tk 7,50,000. Eligible items include life insurance premiums (up to 10% of the sum assured), contributions to a recognised provident fund (yours and your employer’s) or to a fund under the Provident Fund Act, 1925, a deposit pension scheme (DPS, up to Tk 1,20,000 a year), savings certificates and other government securities (up to Tk 5,00,000), new investment in listed shares, mutual funds, unit certificates and ETFs, the Zakat Fund and donations to approved institutions. A fixed deposit, a savings certificate encashed before maturity and things you buy do not count.

Minimum tax and the wealth surcharge

Once your income is above your tax-free threshold you pay at least Tk 5,000, or Tk 1,000 as a new taxpayer, even when the rebate takes the tax lower or below zero; where you live makes no difference (Income Tax Guide).

The surcharge is a share of the tax worked out at the slab rates, before the rebate, set by the net wealth in your statement of assets and liabilities: none up to Tk 4 crore; 10% above Tk 4 crore up to Tk 10 crore, and also with more than one car in your name or more than 8,000 sq ft of house property; 20% up to Tk 20 crore; 30% up to Tk 50 crore; 35% above (circular section 1.6).

Tax deducted from your salary each month

Under section 86 your employer deducts tax from each salary payment at the average rate of the tax on your estimated income from salary for the year. With the same salary every month that is the year’s tax on the salary, after the rebate for the investments you declare to your employer, divided by 12. The employer only sees the salary it pays: tax on your other income, the minimum tax and the surcharge are settled with your return.

When you file the return

Individuals file during the tax year that follows the income year, and the month you file changes what you pay (circular section 67): filed from July to September, you get an incentive of 5% of the tax payable with the return, at most Tk 25,000; from October to December, neither incentive nor additional tax; from January to March, additional tax of 2% of that tax, at least Tk 3,000; from April to June, 5%, at least Tk 5,000. A first-time filer may file at any time in the tax year without additional tax, and an individual living abroad on a valid visa and permit (for higher studies, a posting or lien, or to earn a living) may file within 90 days of coming back to Bangladesh. A return filed after the tax year has ended is a late return: filed of your own accord it adds 10% of the tax payable, at least Tk 5,000, and filed after a notice from the tax office 15%, at least Tk 10,000 (section 174, circular section 72); the calculator covers returns filed within the tax year. Tax deducted or paid above your tax for the year can be refunded or carried forward. Returns are filed online through NBR’s e-Return.

Limitations

• For resident individuals and non-resident Bangladeshis taxed at the regular rates. Companies, firms, associations and non-resident foreign individuals (taxed at 30%) are not covered.
• Enter only income taxed at the regular rates. Income with its own rate or a final tax (capital gains on land, lottery winnings and similar) is left out, and the rebate’s 3% limit is worked out on the income you enter.
• The turnover tax on the gross receipts of a business (above Tk 2 crore of receipts), the environmental surcharge on cars and the special rates for tobacco businesses are not included.
• You enter the eligible amounts of your investments: the calculator applies the DPS and government-securities limits, while the other conditions (10% of the sum assured for life insurance, the limits for recognised provident funds) are yours to check.
• The monthly figure assumes the same salary every month and counts the investments you enter; your employer adjusts the remaining months when either changes.
• The filing windows cover a return filed within the tax year. A late return, filed after the tax year has ended, pays additional tax of 10% or 15% (at least Tk 5,000 or Tk 10,000) that is not worked out here.

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