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
| 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 group | Not in a group below |
| Children or dependants with a disability | 0 |
| First return (new taxpayer: minimum tax ৳1,000) | no |
| Computed by the engine | |
| Salary for the year | 1,200,000 BDT |
| Exempt: 1/3, at most ৳5,00,000 | 400,000 BDT |
| Taxable income ✓ pinned | 800,000 BDT |
| Tax-free threshold | 400,000 BDT |
| Tax at the Schedule 2 rates ✓ pinned | 45,000 BDT |
| Eligible Investment | 100,000 |
| Investment rebate (s.78) ✓ pinned | 10,000 BDT |
| Income tax for the year ✓ pinned | 35,000 BDT |
| Income tax / month | 2,916.67 BDT |
| Take-home for the year | 1,105,000 BDT |
| Net / month ✓ pinned | 92,083.33 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
- Finance Act 2026 (Act 96), s.160 and Schedule 2 Part 1 para (ক): 2026-27 and 2027-28 rates · checked 2026-11-01
- Income Tax Act 2023, Sixth Schedule Pt 1 para 27 (৳5 lakh by Act 89 of 2026, s.135) · checked 2026-11-01
- Income Tax Act 2023 s.78 investment rebate (as amended by the Finance Act 2026, s.61) · checked 2026-11-01
- Finance Act 2026, Bangladesh Gazette 30 June 2026 (NBR copy) · checked 2026-11-01
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.
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