Bangladesh Tax Calculator (2026)
Income tax rates and take-home pay for Bangladesh
Bangladesh Income Tax Brackets (2025/26)
| Bracket | Income Range | Rate |
|---|---|---|
| Basic exemption limit (general taxpayer) | BDT 0 - BDT 375,000 | 0.0% |
| Next 300,000 | BDT 375,000 - BDT 675,000 | 10.0% |
| Next 400,000 | BDT 675,000 - BDT 1,075,000 | 15.0% |
| Next 500,000 | BDT 1,075,000 - BDT 1,575,000 | 20.0% |
| Next 2,000,000 | BDT 1,575,000 - BDT 3,575,000 | 25.0% |
| On rest of income | BDT 3,575,000+ | 30.0% |
Provident fund (employee contribution)
| Bracket | Income Range | Rate |
|---|---|---|
| Provident fund employee contribution | BDT 0+ | 7.0% |
Key Facts
Tax Year
2025/26
Currency
BDT
Top Rate
30.0%
Brackets
6 brackets
Tax-Free Threshold
BDT 375,000
Social Contributions
1 item
Assumptions
- · Model uses FY 2025/26 tax brackets for general resident taxpayers (non-special categories).
- · Basic exemption limit of BDT 375,000 applied for representative general taxpayer.
- · Employment income deduction of one-third of income from employment (capped at BDT 500,000) modeled as income-based deduction.
- · Provident fund contribution modeled at standard 7% employee rate, employer-only contributions excluded.
- · Surcharge on net wealth excluded as it requires asset-specific data beyond employment income scope.
- · Minimum tax regime (gross receipts comparison) excluded for salary-comparison model.
- · Minimum tax floor (BDT 5,000) not modeled as it is a floor applicable only when regular tax calculation is lower.
- · Special exemption limits for women, senior citizens, persons with disabilities, and freedom fighters not modeled; general taxpayer baseline used.
- · Investment rebate (lower of 3% taxable income, 15% of permitted investments, or BDT 1 million) not modeled as it requires detailed investment data.
- · Charitable donations and other itemized deductions not modeled; standard employment deduction used instead.
- · No subnational taxes apply in Bangladesh.
- · Foreign nationals working in Bangladesh taxed at flat 30% rate; not modeled for resident employee scenario.
Frequently asked questions
What is the income tax rate in Bangladesh?
Bangladesh uses a progressive tax system with six tax brackets ranging from 0% to 30%. Income up to BDT 375,000 is tax-free (basic exemption limit), then rates increase incrementally: 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 all income above BDT 3,575,000.
Do I get any deductions from my employment income in Bangladesh?
Yes, you can claim an employment income deduction of one-third of your total employment income, up to a maximum of BDT 500,000. This deduction is applied before calculating your tax liability, which effectively reduces your taxable income.
What is the provident fund contribution rate in Bangladesh?
The standard employee contribution to the provident fund is 7% of your gross income, and this amount is tax-deductible. This means you don't pay income tax on the 7% you contribute to your provident fund.
Is there a minimum income threshold to pay tax in Bangladesh?
Yes, the basic exemption limit is BDT 375,000, meaning you don't owe any income tax if your annual income is below this amount. Once your income exceeds this threshold, tax is calculated on the amount above it according to the progressive brackets.
Are there regional or state taxes in addition to national income tax in Bangladesh?
No, Bangladesh does not have subnational or regional taxes. Income tax is administered at the national level only, so your tax liability is determined solely by the national tax brackets and rules.
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