Bangladesh Tax Calculator (2026)
Income tax rates and take-home pay for Bangladesh
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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 for someone earning 1 million BDT per year?
Bangladesh uses a progressive tax system with 6 brackets rather than a flat rate. On 1 million BDT, you would pay 0% tax on the first 375,000 BDT (basic exemption), then 10% on the next 300,000 BDT, and 15% on the remaining 325,000 BDT, after accounting for the employment income deduction of one-third of your salary (capped at 500,000 BDT).
Do I have to pay provident fund contributions in Bangladesh?
Yes, if you are an employee in Bangladesh, you are required to contribute 7% of your gross income to the provident fund, and this contribution is tax-deductible, which reduces your taxable income. This is a mandatory social contribution separate from income tax.
What is the basic exemption limit for income tax in Bangladesh?
The basic exemption limit for a general resident taxpayer in Bangladesh is 375,000 BDT, meaning you pay no income tax on income up to that amount. Above that threshold, you enter the progressive tax brackets, starting at 10% on income between 375,000 and 675,000 BDT.
Are there any deductions I can claim on my employment income?
Yes, you can claim an employment income deduction of one-third of your employment income, with a maximum cap of 500,000 BDT. This deduction is applied to reduce your taxable income before calculating the tax owed under the progressive brackets.
What is the highest income tax rate in Bangladesh?
The highest income tax rate in Bangladesh is 30%, which applies to income above 3,575,000 BDT. The tax system is progressive, with rates gradually increasing from 10% to 30% as your income rises through the six tax brackets.
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