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 basic income tax exemption limit in Bangladesh?
The basic exemption limit in Bangladesh is BDT 375,000, meaning you don't pay any income tax on income up to this amount. Once your income exceeds BDT 375,000, you start paying tax on the amount above this threshold at progressive rates ranging from 10% to 30%.
How much do I need to contribute to the provident fund as an employee in Bangladesh?
As an employee in Bangladesh, you contribute 7% of your gross income to the provident fund, and this contribution is tax-deductible. This means the contribution reduces your taxable income, providing some tax relief on top of the savings benefit.
What are the income tax brackets in Bangladesh?
Bangladesh uses a progressive tax system with 6 brackets. Income from BDT 375,000 to 675,000 is taxed at 10%, then 15% up to BDT 1,075,000, 20% up to BDT 1,575,000, 25% up to BDT 3,575,000, and 30% on income above that. You also get an employment income deduction of one-third of your employment income, capped at BDT 500,000, which further reduces your taxable income.
Do expats and foreign nationals pay a different tax rate in Bangladesh?
Yes, foreign nationals working in Bangladesh are subject to a flat 30% tax rate on their income, which is significantly higher than the progressive rates for resident employees. If you are a resident employee, you benefit from the standard progressive tax brackets and deductions available to general taxpayers.
How is the employment income deduction calculated in Bangladesh?
The employment income deduction is calculated as one-third of your total employment income, but it is capped at a maximum of BDT 500,000. This deduction is applied to reduce your taxable income before calculating the income tax you owe under the progressive brackets.
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