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
How much income tax will I pay if I move to Bangladesh as a resident employee?
Bangladesh uses a progressive tax system with 6 income brackets ranging from 0% to 30%. You'll pay no tax on your first BDT 375,000 of income, then 10% on the next BDT 300,000, 15% on the next BDT 400,000, and rates increase up to 30% on income above BDT 3,575,000. Additionally, you can deduct one-third of your employment income (capped at BDT 500,000) before tax is calculated, which reduces your taxable income.
What is the provident fund contribution rate in Bangladesh?
As an employee in Bangladesh, you contribute 7% of your gross income to the provident fund, which is deducted from your salary before income tax is calculated. This contribution is mandatory for most employees and reduces both your take-home pay and your taxable income.
What's the basic exemption limit for income tax in Bangladesh?
The basic exemption limit for general resident taxpayers in Bangladesh is BDT 375,000, meaning you pay no income tax on the first BDT 375,000 of your annual income. Only income above this threshold is subject to the progressive tax brackets.
Are there any regional or state taxes I need to pay in Bangladesh?
No, Bangladesh does not have subnational taxes, so there are no additional regional or state income taxes to pay regardless of where in the country you work or live. Your tax obligations are determined solely by the national income tax system.
Is there a different tax rate for foreign nationals working in Bangladesh?
Yes, foreign nationals working in Bangladesh are taxed at a flat rate of 30% on their income, which is significantly higher than the progressive rates for resident employees. If you're relocating to Bangladesh as an expat, you should confirm your tax residency status with local authorities, as it affects whether you fall under the resident employee brackets or the flat foreign national rate.
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