Income Tax Rates and Tax-Free Limit in Bangladesh 2026-27, with a Calculator
The Finance Act 2026 raised the tax-free limit to Tk 4 lakh, abolished the 5% slab and set a single minimum tax of Tk 5,000. Here are the rates that apply to income earned between 1 July 2025 and 30 June 2026, and a calculator to see what they mean for you.
- Tax-free limit: Tk 4,00,000 for most individuals; Tk 4,50,000 for women and anyone aged 65 or over; Tk 5,25,000 for persons with disability and third-gender taxpayers; Tk 5,50,000 for war-wounded freedom fighters.
- Slabs above the limit: 10%, 15%, 20%, 25% and 30%. The 5% slab is gone.
- Minimum tax: Tk 5,000 wherever you live (Tk 1,000 for a first-time taxpayer), only if income exceeds the limit.
- Surcharge on net wealth above Tk 4 crore, or on a second car or a house over 8,000 sq ft, is charged on the tax, from 10% to 35%.
In this guide: Tax-free limits by category · Slab rates and a worked example · Minimum tax, surcharge and other add-ons · What changed from 2025-26, and what is coming
The short answer
For tax year 2026-27 you pay nothing on the first Tk 4,00,000 of total income (more if you are a woman, over 65, disabled, third-gender or a war-wounded freedom fighter), then 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 everything above. If your income exceeds the limit the tax cannot be less than Tk 5,000. Parliament fixed the limit at Tk 4 lakh for this year and next, rising to Tk 4.5 lakh for 2028-29 and 2029-30 and Tk 5 lakh for 2030-31.
Indicative only. Slabs and limits as enacted by the Finance Act 2026; surcharge on net wealth, reduced rates and exemptions are not included. Your return may differ.
Tax-free limits by category
| Taxpayer | Tax-free limit, tax year 2026-27 |
|---|---|
| General individual | Tk 4,00,000 |
| Women; any individual aged 65 or over | Tk 4,50,000 |
| Persons with disability; third-gender taxpayers | Tk 5,25,000 |
| War-wounded gazetted freedom fighters; gazetted “July warriors” | Tk 5,50,000 |
| Parent or legal guardian of a child with disability | Limit increased by Tk 50,000 (one parent only) |
The Finance Bill had proposed Tk 3,75,000; Parliament raised it to Tk 4,00,000 on 29 June 2026 and wrote in the later steps (Tk 4.5 lakh for 2028-29 and 2029-30; Tk 5 lakh for 2030-31). These category limits are as enacted by the Finance Act 2026 for tax years 2026-27 and 2027-28 (the Tk 50,000 addition for a disabled dependent is carried from the earlier law). The Act also writes in the later ladder: for 2028-29 and 2029-30 the limits are Tk 4.5 / 5 / 5.75 / 5.75 / 6 lakh for the five categories in the table, and for 2030-31 Tk 5 / 5.5 / 6.25 / 6.25 / 6.5 lakh; a 35% top rate applies from 2028-29 on income above roughly Tk 29.6 crore. One-page return. An individual with taxable income up to Tk 5,00,000 and gross assets up to Tk 40,00,000 may file the one-page return (IT-GHA) instead of the full form, unless they own a motor vehicle, own a house or flat in a city corporation, hold a foreign asset, or are a shareholder-director of a company (Income Tax Return Rules 2023).
Slab rates and a worked example
| Band of total income | Rate |
|---|---|
| Up to the tax-free limit | 0% |
| Next Tk 3,00,000 | 10% |
| Next Tk 4,00,000 | 15% |
| Next Tk 5,00,000 | 20% |
| Next Tk 20,00,000 | 25% |
| Balance | 30% |
Example. A general taxpayer with total income of Tk 12,00,000: nil on the first 4 lakh; 10% of 3 lakh = Tk 30,000; 15% of 4 lakh = Tk 60,000; 20% of the remaining 1 lakh = Tk 20,000. Tax before rebate: Tk 1,10,000. With Tk 2,00,000 of eligible investment the rebate is the lowest of 3% of income (36,000), 10% of the investment (20,000) and Tk 7.5 lakh — so Tk 20,000, and tax payable is Tk 90,000. Last year the same income paid less at the bottom (a 5% band) and the rebate was 15% of investment; both changed on 1 July 2026.
Non-resident individuals who are not Bangladeshi pay a flat 30%; see our NRB and expatriate guide. Companies have their own rates — see the company tax guide.
Minimum tax, surcharge and other add-ons
Minimum tax. If your total income exceeds the tax-free limit, the tax payable cannot be less than Tk 5,000, wherever you live — the old Tk 5,000 / 4,000 / 3,000 split by city corporation, other city corporation and elsewhere ended this year. A first-time taxpayer’s minimum is Tk 1,000. A return showing income below the limit carries no minimum tax at all.
Surcharge on net wealth. Individuals with net assets above Tk 4 crore pay a surcharge calculated on the income tax, not on the wealth: 10% for net wealth above Tk 4 crore up to 10 crore, or for owning more than one motor car, or a house property of more than 8,000 square feet in a city corporation; 20% above Tk 10 crore to 20 crore; 30% above 20 crore to 50 crore; 35% above 50 crore. These tiers are in the Second Schedule to the Act and were not changed by the Finance Act 2026.
Environment surcharge on second and further cars, from Tk 25,000 (up to 1,500cc) to Tk 3,50,000 (above 3,500cc), is collected at registration or fitness renewal.
Early-filing rebate and late additional tax under the new year-round filing system are separate from these rates — see the return filing guide.
What changed from 2025-26, and what is coming
| Tax year 2025-26 | Tax year 2026-27 | |
|---|---|---|
| Tax-free limit (general) | Tk 3,50,000 | Tk 4,00,000 |
| Lowest slab | 5% on the next Tk 1 lakh | Abolished; 10% starts at once |
| Minimum tax | Tk 5,000 / 4,000 / 3,000 by area | Tk 5,000 flat; Tk 1,000 first-time |
| Investment rebate | Lower of 3% of income, 15% of investment, Tk 10 lakh | Lower of 3% of income, 10% of investment, Tk 7.5 lakh |
| Filing deadline | 30 November, extended four times to 31 March 2026 | Year-round; rebate to 30 Sep, additional tax from 1 Jan 2027 |
The Act already fixes the path for the next four years: a Tk 4.5 lakh limit for tax years 2028-29 and 2029-30 and Tk 5 lakh for 2030-31. A Finance Act can still change any of this each June; we update this page when it does.
Check your category
Age, gender and disability status change the limit by up to Tk 1.5 lakh; make sure the return claims the right one.
Time your rebate investments
Investments made by 30 June count for that year; the 10% rebate now favours spreading them over years.
Watch the surcharge triggers
A second car or a large house triggers a 10% surcharge regardless of wealth; plan registrations accordingly.
File by 30 September
The 5% early-filing rebate is on top of everything here.
Common questions
What is the tax-free income limit in Bangladesh for 2026-27?
Tk 4,00,000 for most individuals. Women and anyone aged 65 or over have Tk 4,50,000; persons with disability and third-gender taxpayers Tk 5,25,000; war-wounded freedom fighters Tk 5,50,000.
What are the income tax slabs for 2026-27?
After the tax-free limit: 10% on the next Tk 3 lakh, 15% on the next 4 lakh, 20% on the next 5 lakh, 25% on the next 20 lakh and 30% on the balance. The former 5% slab was abolished.
What is the minimum tax?
Tk 5,000 for any individual whose income exceeds the tax-free limit, wherever they live; Tk 1,000 for a first-time taxpayer. No minimum tax applies if income is below the limit.
Is the tax-free limit for women different?
Yes. Women, like anyone aged 65 or over, have a limit of Tk 4,50,000 for tax year 2026-27.
How is surcharge calculated?
As a percentage of the income tax, not of wealth: 10% if net wealth exceeds Tk 4 crore (or you own more than one car or a house over 8,000 sq ft), 20% above Tk 10 crore, 30% above 20 crore and 35% above 50 crore.
Will the limit change next year?
The Act keeps Tk 4 lakh for 2027-28, then Tk 4.5 lakh for 2028-29 and 2029-30 and Tk 5 lakh for 2030-31, unless a later Finance Act changes it.
How much is the investment rebate now?
The lowest of 3% of total income, 10% of eligible investment, and Tk 7.5 lakh. The rate was 15% and the cap Tk 10 lakh until tax year 2025-26.
What rate do foreigners pay?
Non-resident individuals who are not Bangladeshi pay a flat 30%. Non-resident Bangladeshis are taxed at the ordinary slab rates.
More in Tax, VAT & Customs
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