Bangladesh salary tax calculator (বেতনের আয়কর, 2026-27)

Your take-home salary in Bangladesh is your pay minus income tax on two-thirds of it (one-third, at most ৳5 lakh a year, is exempt): nothing on the first ৳4 lakh of taxable income — ৳4.5 lakh for women and people aged 65 or over, more for people with a disability or third gender and gazetted war-wounded freedom fighters — then 10% rising to 30%, less an investment rebate, with a ৳5,000 minimum once you pass the threshold.

Worked example · Net / month

You keep 92.1% of gross pay 7.9% goes to tax and contributions

With Gross monthly salary of 100,000, this model computes Net / month of 92,083.33 BDT. See the full working.

✓ Verified against 12 self-test cases Updated for 2026-27 · sources checked 2026-11-01

How বেতনের আয়কর (income tax on salary) in Bangladesh is calculated

The income year runs from **1 July 2026 to 30 June 2027** and is assessed in tax year 2027-28. The **Finance Act 2026** (Act 96, s.160 and Schedule 2 Part 1 para (ক)) sets one table for tax years 2026-27 and 2027-28: **0%** on the first ৳4,00,000, then **10%** on the next ৳3,00,000, **15%** on the next ৳4,00,000, **20%** on the next ৳5,00,000, **25%** on the next ৳20,00,000 and **30%** on the rest. The tax-free threshold is ৳4,50,000 for women and people aged 65 or over, ৳5,25,000 for people with a disability and third-gender taxpayers, and ৳5,50,000 for gazetted war-wounded freedom fighters and gazetted July fighters injured in 2024; a parent of a child or dependant with a disability adds ৳50,000 per child (one parent only).

Before the table, **one-third of income from employment, at most ৳5,00,000**, is exempt (Income Tax Act 2023, Sixth Schedule Part 1 para 27, raised from ৳4.5 lakh by Act 89 of 2026). Section 78 then gives a rebate of the least of **3%** of taxable income, **10%** of eligible investment — your recognised provident fund contribution, savings certificates, DPS, life insurance premiums — and **৳7,50,000** (the last two cut by the Finance Act 2026). Once taxable income passes the threshold the tax is at least **৳5,000**, or ৳1,000 on a first return.

On **৳1,00,000 a month** with ৳5,000 a month into the provident fund and ৳40,000 of other investment, the year’s ৳12,00,000 less the ৳4,00,000 exemption leaves ৳8,00,000 taxable. Tax is ৳30,000 + ৳15,000 = **৳45,000**, the rebate is 10% of ৳1,00,000 = ৳10,000, so you pay **৳35,000** — and take home **৳92,083.33** a month after the tax and your own provident fund share. Resident individuals only; the wealth surcharge (net wealth over ৳4 crore, a second car or a home over 8,000 sq ft) and other income are not modelled. Estimate, not tax advice.

Worked example

ShowHide the full working: 7 inputs, 11 computed steps
৳1,00,000 a month, ৳5,000 PF and ৳40,000 other investment: tax ৳45,000 less the ৳10,000 rebate
Inputs
Gross monthly salary (BDT)100,000
Festival and other bonuses for the year (BDT)0
Your provident fund contribution (BDT / month)5,000
Other eligible investment for the year (BDT)40,000
Your tax-free threshold groupNot in a group below
Children or dependants with a disability0
First return (new taxpayer: minimum tax ৳1,000)no
Computed by the engine
Salary for the year1,200,000 BDT
Exempt: 1/3, at most ৳5,00,000400,000 BDT
Taxable income ✓ pinned800,000 BDT
Tax-free threshold400,000 BDT
Tax at the Schedule 2 rates ✓ pinned45,000 BDT
Eligible Investment100,000
Investment rebate (s.78) ✓ pinned10,000 BDT
Income tax for the year ✓ pinned35,000 BDT
Income tax / month2,916.67 BDT
Take-home for the year1,105,000 BDT
Net / month ✓ pinned92,083.33 BDT

Every computed row comes from the engine, run on the inputs above. Rows marked ✓ pinned are also fixed by a published self-test, so a change to the model that moved them would fail its own tests.

Frequently asked questions

What is the tax-free income limit in Bangladesh for 2026-27?

৳4,00,000 of taxable income under the Finance Act 2026, for tax years 2026-27 and 2027-28. It is ৳4,50,000 for women and people aged 65 or over, ৳5,25,000 for people with a disability and third-gender taxpayers, and ৳5,50,000 for gazetted war-wounded freedom fighters and injured July fighters. It rises to ৳4,50,000 in 2028-29.

How much of my salary is tax-free?

One-third of your income from employment, but no more than ৳5,00,000 a year, is exempt before the tax table is applied. On ৳12 lakh a year, ৳4 lakh is exempt and ৳8 lakh is taxable.

How is the investment rebate worked out?

Section 78 of the Income Tax Act 2023 takes the least of 3% of your taxable income, 10% of your eligible investment for the year and ৳7,50,000 off the tax. The Finance Act 2026 cut the investment share from 15% and the cap from ৳10 lakh.

What is the minimum income tax in Bangladesh?

৳5,000 for anyone whose taxable income exceeds the tax-free threshold, and ৳1,000 for a new taxpayer (Finance Act 2026, Schedule 2). It replaces the earlier amounts that varied by city.

Sources

Estimate. Not tax advice. The verification badge means the model reproduces the stated formula through 12 self-test cases; the sources support that the formula matches the rules.

Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 12 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.

Related calculators

India in-hand salary · Pakistan salary after tax · Nigeria salary after tax · Indonesia Gaji bersih (net salary) · China 税后工资 (take-home pay)

Also for Bangladesh: Bangladesh ব্যবসার আয়কর (business income tax) · Bangladesh মূসক (VAT) · Bangladesh বাৎসরিক ছুটি (annual leave) · Bangladesh মোটরযানের অগ্রিম কর (motor vehicle advance tax)

All Bangladesh calculators · All calculators

Fork this model in the Valem sandbox →

Built with Valem — a live, verifiable calculator you can fork and embed.