Bangladesh Tax Calculator (2026)
Income tax rates and take-home pay for Bangladesh
Advertisement
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 has a progressive tax system with six income tax brackets ranging from 0% to 30%. The first BDT 375,000 of income is tax-free under the basic exemption limit, and rates gradually increase to 30% on income above BDT 3,575,000. The specific rate you pay depends on which bracket your taxable income falls into.
How much can I deduct from my employment income in Bangladesh?
You can deduct one-third of your employment income from your taxable income, up to a maximum of BDT 500,000. This employment income deduction is applied before calculating your income tax liability, which can significantly reduce your overall tax burden.
Do I have to contribute to a provident fund in Bangladesh?
Yes, if you are an employee in Bangladesh, you are required to contribute 7% of your gross income to a provident fund. This contribution is deductible from your taxable income, meaning it reduces the amount of income subject to tax.
What is the basic exemption limit for income tax in Bangladesh?
The basic exemption limit for a general taxpayer in Bangladesh is BDT 375,000 per year. This means you do not pay any income tax on the first BDT 375,000 of your income; tax only applies to income above this threshold.
Are there different tax rates for foreigners working in Bangladesh?
Yes, foreign nationals working in Bangladesh are taxed at a flat rate of 30% on their income, which is different from the progressive system that applies to resident employees. If you are a foreign national considering work in Bangladesh, you should factor this higher flat rate into your financial planning.
Advertisement
Compare Bangladesh with other countries
Other tax calculators
Compare Bangladesh with another country
See side-by-side tax breakdowns for any two countries