🇧🇩 Bangladesh Income Tax Calculator
NBR-Compliant Income Tax Act 2023 · Multi-Year Slabs (AY 2023-24 → 2027-28) · Investment Rebate · Minimum Tax · Surcharge · Refund Estimation
Tax Input Details
Enter your income, investments, and personal details. The calculator applies the correct slab structure, rebate caps, and minimum tax for the selected assessment year.
Tax Calculation Breakdown
Complete slab-wise breakdown, rebate, surcharge, and net payable will appear here.
📚 NBR Rules, Scenarios & Professional Tips
Everything you need to understand how your tax is computed under the Income Tax Act 2023.
📌 Tax Slabs & Thresholds — All Assessment Years (2023-24 → 2027-28)
The slab structure is applied after deducting the tax-free threshold. The threshold itself depends on your taxpayer category and the assessment year. Below is the complete reference:
| Assessment Year | General | Female / Senior | Disabled / Third Gender | Freedom Fighter / July Warrior |
|---|---|---|---|---|
| 2027-2028 | ৳4,00,000 | ৳4,50,000 | ৳5,25,000 | ৳5,50,000 |
| 2026-2027 | ৳4,00,000 | ৳4,50,000 | ৳5,25,000 | ৳5,50,000 |
| 2025-2026 | ৳3,75,000 | ৳4,25,000 | ৳5,00,000 | ৳5,25,000 |
| 2024-2025 | ৳3,50,000 | ৳4,00,000 | ৳4,75,000 | ৳5,00,000 |
| 2023-2024 | ৳3,50,000 | ৳4,00,000 | ৳4,75,000 | ৳5,00,000 |
Slab structure (above threshold), AY 2025-26 → 2027-28:
- Next ৳3,00,000 → 10%
- Next ৳4,00,000 → 15%
- Next ৳5,00,000 → 20%
- Next ৳20,00,000 → 25%
- Remaining → 30%
Slab structure (above threshold), AY 2023-24 & 2024-25:
- Next ৳1,00,000 → 5%
- Next ৳3,00,000 → 10%
- Next ৳4,00,000 → 15%
- Next ৳5,00,000 → 20%
- Remaining → 25%
📈 Investment Rebate — Caps, Rates & Eligible Instruments
Investment rebate reduces your tax payable. The rebate is the minimum of three amounts:
- 3% of your total taxable income
- 15% of eligible investments
- ৳10,00,000 (absolute cap)
Eligible investment instruments & caps:
| Instrument | Eligible Amount |
|---|---|
| Life Insurance Premium | Up to 10% of sum insured |
| Deposit Pension Scheme (DPS) | Up to ৳1,20,000 |
| Bangladesh Savings Certificate | Up to ৳5,00,000 |
| Provident Fund / GPF | Actual contribution |
| Mutual Funds / ETF / Listed Securities | Actual purchase |
| Other approved investments (Sukuk, etc.) | Actual amount |
⚖️ Minimum Tax — By Location & First-Time Filer
Even if your computed tax is zero, a minimum tax may still apply if your income exceeds the threshold. The minimum tax depends on the assessment year and (for some years) your location.
| Assessment Year | Dhaka / Chattogram CC | Other City Corp. | Outside City Corp. | First-Time Filer |
|---|---|---|---|---|
| 2023-24, 2024-25, 2025-26 | ৳5,000 | ৳4,000 | ৳3,000 | ৳1,000 |
| 2026-27, 2027-28 | ৳5,000 (flat) | ৳1,000 | ||
🏛️ Surcharge on Net Wealth — Rates & Computation
Surcharge is an additional tax on the computed tax (after rebate and minimum tax) if your net wealth exceeds the thresholds below:
| Net Wealth (৳) | Surcharge Rate |
|---|---|
| Up to 4,00,00,000 (4 crore) | Nil |
| 4,00,00,001 – 10,00,00,000 | 10% |
| 10,00,00,001 – 20,00,00,000 | 20% |
| 20,00,00,001 – 50,00,00,000 | 30% |
| Above 50,00,00,000 | 35% |
🧾 Tax Refund — When You Get Money Back
If the tax you already paid (via TDS, AIT, or advance tax) exceeds your final tax liability, you are entitled to a refund. The calculator shows this as a negative "Net Payable" — meaning NBR owes you money.
- Common for salaried employees whose employer deducted TDS at a higher rate.
- Also common for taxpayers with significant eligible investments.
- You must file your return to claim the refund.
🌾 Agricultural Income — Special Exemption
Up to ৳5,00,000 of agricultural income is fully exempt from tax. Agricultural income beyond ৳5,00,000 is added to your total income and taxed at the applicable slab rate.
What counts as agricultural income?
- Income from cultivation of land
- Income from sale of agricultural produce
- Rent from agricultural land (in some cases)
✅ Do's and Don'ts for Filing Your Return
Do:
- Keep all TDS certificates (Form 108), bank statements, and investment receipts.
- File before the deadline (usually 30 November, may be extended).
- Report all sources of income, even small ones.
- Claim rebate only on eligible investments.
- Verify your TIN and personal info on the e-Return portal.
Don't:
- Under-report income or over-report investments.
- Ignore minimum tax — it applies even if your slab tax is zero.
- Forget to include foreign income if you're a resident.
- File without checking the current year's Finance Act changes.
📊 Worked Example Scenarios
Scenario 1 — Salaried Employee (General, AY 2026-27)
- Total taxable income: ৳12,00,000
- Threshold: ৳4,00,000
- Slab income: ৳8,00,000
- Tax: 3L × 10% + 4L × 15% + 1L × 20% = 30,000 + 60,000 + 20,000 = ৳1,10,000
- Investments: ৳4,00,000 → rebate = min(36,000, 60,000, 10,00,000) = ৳36,000
- Tax after rebate: ৳74,000
- Minimum tax: ৳5,000 → final = ৳74,000
- Already paid TDS: ৳80,000 → Refund ৳6,000
Scenario 2 — Female Taxpayer (AY 2027-28)
- Total taxable income: ৳6,00,000
- Threshold: ৳4,50,000
- Slab income: ৳1,50,000
- Tax: 1.5L × 10% = ৳15,000
- No investments → rebate = 0
- Final tax: ৳15,000
Scenario 3 — First-Time Filer (AY 2026-27)
- Total taxable income: ৳4,50,000
- Threshold: ৳4,00,000
- Slab tax: 50,000 × 10% = ৳5,000
- Minimum tax for first-timer: ৳1,000
- Final tax: ৳5,000 (slab tax exceeds minimum)
📘 How Taxable Income Is Calculated
A complete reference for converting gross salary components and other income heads into your final Total Annual Taxable Income under the Income Tax Act 2023.
Part 1 — Salary Income: From Components to Taxable Salary
The Income Tax Act 2023 replaced the old separate exemptions for house rent (৳3,00,000), medical (৳1,20,000), and conveyance (৳30,000) with a single consolidated exemption. Every salary component is first summed into gross salary, then the consolidated exemption is deducted.
Step 1 — Sum all salary components (all fully taxable at this stage)
| Salary Component | Treatment | Notes |
|---|---|---|
| Basic Salary | 100% Taxable | Multiply monthly basic × 12 |
| House Rent Allowance | 100% Included | No separate ৳3L exemption anymore — fully included in gross |
| Medical Allowance | 100% Included | No separate ৳1.2L exemption — fully included in gross |
| Conveyance Allowance | 100% Included | No separate ৳30k exemption — fully included in gross |
| Festival Bonus | 100% Taxable | Not part of any exempt basket — fully taxable |
| Performance / Incentive Bonus | 100% Taxable | Fully taxable |
| Overtime / Leave Encashment | 100% Taxable | Fully taxable |
| Other Allowances | 100% Taxable | Unless covered by a specific SRO exemption |
| Employer's PF Contribution | Exempt | Up to 1/3 of basic or ৳1,00,000 (whichever lower) per year |
| Gratuity | Exempt | Subject to conditions under the Act |
| Government Employees (SRO 225/2023) | Partial | Only basic + festival allowance + bonus taxable; all other allowances exempt |
Step 2 — Apply the consolidated exemption
Consolidated Salary Exemption Formula
Gross Annual Salary = (Basic × 12) + (HRA × 12) + (Medical × 12) + (Conveyance × 12) + (Other Monthly × 12) + Festival Bonus + Performance Bonus + Overtime + Other
Consolidated Exemption = MIN( ৳4,50,000 , Gross Annual Salary ÷ 3 )
Income from Employment = Gross Annual Salary − Consolidated Exemption
Step 3 — Apply the category tax-free threshold
| Taxpayer Category | AY 2025-26 | AY 2026-27 & 2027-28 |
|---|---|---|
| General Individual | ৳3,75,000 | ৳4,00,000 |
| Female / Senior (65+) | ৳4,25,000 | ৳4,50,000 |
| Physically Challenged / Third Gender | ৳5,00,000 | ৳5,25,000 |
| War-Wounded Freedom Fighter | ৳5,25,000 | ৳5,50,000 |
Final Taxable Income (Salary Only)
Total Annual Taxable Income = Income from Employment − Tax-Free Threshold
Part 2 — Other Income Heads: Treatment & Computation
| Income Head | Computation | Exemption / Deduction |
|---|---|---|
| Rent Income (residential) | Gross Rent − Repairs − Municipal Tax | 30% repair deduction allowed on gross rent if repairs not actually claimed |
| Rent Income (commercial) | Gross Rent − Actual Repairs − Municipal Tax | Actual repairs only |
| Agricultural Income | Actual agricultural receipts | Up to ৳5,00,000 exempt (AY 2025-26 onwards); earlier years ৳2,00,000 |
| Business Income | Net profit after allowable business expenses | No cap — fully taxable at slab rates |
| Capital Gains | Sale Proceeds − Cost − Expenses | Depends on asset type and holding period; some are final-tax |
| Financial Asset Income | Interest / Dividend received | Final Tax in many cases (bank interest, listed dividend) |
| Other Source Income | Bank interest, royalty, director fees, etc. | Often final tax — check applicable section |
Total Income Formula
Aggregate Total Income
Total Income = Income from Employment + Rent Income (net) + Agricultural Income (taxable portion) + Business Income + Other Normal-Rate Income
Total Annual Taxable Income = Total Income − Tax-Free Threshold
Part 3 — Worked Examples (AY 2026-27, General Category)
Mid-Level Private Employee — Standard Structure
| Component | Monthly (৳) | Annual (৳) |
|---|---|---|
| Basic Salary | 60,000 | 7,20,000 |
| House Rent (40% of basic) | 24,000 | 2,88,000 |
| Medical (10% of basic) | 6,000 | 72,000 |
| Conveyance (10% of basic) | 6,000 | 72,000 |
| Festival Bonus (2 × basic) | — | 1,20,000 |
| Gross Annual Salary | — | 12,72,000 |
Step 1 — Consolidated exemption:
- One-third of gross = 12,72,000 ÷ 3 = ৳4,24,000
- Absolute cap = ৳4,50,000
- Exemption = min(4,24,000, 4,50,000) = ৳4,24,000
Step 2 — Income from Employment: 12,72,000 − 4,24,000 = ৳8,48,000
Step 3 — Taxable income: 8,48,000 − 4,00,000 (threshold) = ৳4,48,000
Step 4 — Slab tax: 3,00,000 × 10% + 1,48,000 × 15% = 30,000 + 22,200 = ৳52,200
Senior Executive — High Salary Structure
| Component | Monthly (৳) | Annual (৳) |
|---|---|---|
| Basic Salary | 1,50,000 | 18,00,000 |
| House Rent (40% of basic) | 60,000 | 7,20,000 |
| Medical (10%) | 15,000 | 1,80,000 |
| Conveyance (10%) | 15,000 | 1,80,000 |
| Other Allowance | 10,000 | 1,20,000 |
| Festival Bonus (2 × basic) | — | 3,00,000 |
| Performance Bonus | — | 2,00,000 |
| Gross Annual Salary | — | 35,00,000 |
Step 1 — Consolidated exemption:
- One-third = 35,00,000 ÷ 3 = ৳11,66,667
- Cap = ৳4,50,000 → exemption = ৳4,50,000
Step 2 — Income from Employment: 35,00,000 − 4,50,000 = ৳30,50,000
Step 3 — Taxable income: 30,50,000 − 4,00,000 = ৳26,50,000
Step 4 — Slab tax:
- Next 3,00,000 × 10% = 30,000
- Next 4,00,000 × 15% = 60,000
- Next 5,00,000 × 20% = 1,00,000
- Remaining 14,50,000 × 25% = 3,62,500
- Total = ৳5,52,500
Junior Employee — Below Threshold (No Tax)
| Component | Monthly (৳) | Annual (৳) |
|---|---|---|
| Basic Salary | 20,000 | 2,40,000 |
| House Rent | 8,000 | 96,000 |
| Medical | 2,000 | 24,000 |
| Conveyance | 2,000 | 24,000 |
| Festival Bonus | — | 40,000 |
| Gross Annual Salary | — | 4,24,000 |
Step 1 — Consolidated exemption: min(4,50,000, 4,24,000 ÷ 3 = 1,41,333) = ৳1,41,333
Step 2 — Income from Employment: 4,24,000 − 1,41,333 = ৳2,82,667
Step 3 — Taxable income: 2,82,667 − 4,00,000 = Negative → ৳0
Government Employee (SRO 225/2023 Treatment)
Government employees under SRO 225/2023: only basic salary, festival allowance, and bonus are taxable. All other allowances (house rent, medical, conveyance, etc.) are exempt. The consolidated 1/3 exemption does not apply.
| Component | Monthly (৳) | Annual (৳) | Taxable? |
|---|---|---|---|
| Basic Salary | 40,000 | 4,80,000 | Yes |
| House Rent | 20,000 | 2,40,000 | Exempt |
| Medical | 4,000 | 48,000 | Exempt |
| Conveyance | 3,000 | 36,000 | Exempt |
| Festival Allowance | — | 80,000 | Yes |
| Taxable Salary | — | 5,60,000 | — |
Taxable income: 5,60,000 − 4,00,000 = ৳1,60,000
Slab tax: 1,60,000 × 10% = ৳16,000
Business Owner with Multiple Income Heads
| Income Head | Gross (৳) | Deduction / Exemption | Taxable (৳) |
|---|---|---|---|
| Business Net Profit | 15,00,000 | — | 15,00,000 |
| Rent (residential) | 6,00,000 | 30% repair = 1,80,000 | 4,20,000 |
| Agricultural Income | 6,00,000 | Exempt up to 5,00,000 | 1,00,000 |
| Bank Interest (final tax) | 50,000 | Already taxed at source | 0 |
| Total Income | — | — | 20,20,000 |
Taxable income: 20,20,000 − 4,00,000 = ৳16,20,000
Slab tax:
- 3,00,000 × 10% = 30,000
- 4,00,000 × 15% = 60,000
- 5,00,000 × 20% = 1,00,000
- 4,20,000 × 25% = 1,05,000
- Total = ৳2,95,000
Freelancer / IT Professional — Mixed Income
| Income Source | Annual (৳) | Tax Treatment |
|---|---|---|
| Freelance / Export of IT Services | 12,00,000 | Taxable — but may qualify for reduced rate under SRO |
| Foreign Remittance (through banking channel) | 8,00,000 | Fully exempt if through official channel |
| Local Consulting Income | 3,00,000 | Taxable at slab rates |
| Bank Interest | 80,000 | Final tax at source |
| Total Normal-Rate Income | 15,00,000 | — |
Taxable income: 15,00,000 − 4,00,000 = ৳11,00,000
Slab tax: 3,00,000 × 10% + 4,00,000 × 15% + 4,00,000 × 20% = 30,000 + 60,000 + 80,000 = ৳1,70,000
Part 4 — The Complete Taxable Income Flow
Part 5 — Quick Reference Summary
| Rule | Value / Formula |
|---|---|
| Consolidated salary exemption cap | ৳4,50,000 (or 1/3 of gross, whichever lower) |
| Tax-free threshold — General (AY 2026-27) | ৳4,00,000 |
| Slab rates above threshold (AY 2026-27) | 10% → 15% → 20% → 25% → 30% |
| Investment rebate cap | MIN(3% of income, 15% of investment, ৳10,00,000) |
| DPS eligible cap | ৳1,20,000 |
| Savings Certificate eligible cap | ৳5,00,000 |
| Life insurance premium cap | 10% of sum insured |
| Agricultural exemption | Up to ৳5,00,000 (AY 2025-26 onwards) |
| Residential rent repair deduction | 30% of gross rent |
| Minimum tax (AY 2026-27, regular) | ৳5,000 |
| Minimum tax (first-time filer) | ৳1,000 |
| Surcharge threshold | Net worth above ৳4 crore |
| Surcharge rates | 10% / 20% / 30% / 35% |
🎓 Step-by-Step Tutorial: How to Use This Calculator
Follow these steps to get an accurate estimate of your annual income tax liability.
Select Assessment Year
Choose the correct assessment year (AY). For income earned in 2025-2026, select AY 2026-2027. The slab structure and thresholds change by year, so this choice matters.
Choose Taxpayer Category
Female, senior (65+), disabled, third gender, and freedom fighters get a higher tax-free threshold. Pick the one that applies to you.
Enter Total Taxable Income
This is your gross income minus all allowable deductions (but before the tax-free threshold is applied). Include salary, business, rent, and other income.
Add Eligible Investments
Enter DPS (cap ৳1.2L), Savings Certificates (cap ৳5L), Life Insurance Premium (cap 10% of sum insured), Provident Fund, and other approved investments.
Enter Net Wealth (for Surcharge)
If your net worth exceeds ৳4 crore, surcharge applies. Enter total assets minus liabilities. If unsure, leave 0.
Enter Already-Paid Tax
Add any TDS, AIT, or advance tax you've already paid. The calculator will show whether you owe more or are due a refund.
Click Calculate
The result panel shows a full slab-wise breakdown, rebate, minimum tax, surcharge, and net payable/refund.
Export or Print
Use "Print / Save PDF" for a formatted report, or "Excel (CSV)" for a spreadsheet. Keep a copy for your records.
📖 Understanding the Calculation Formula
Step A — Compute taxable base:
Taxable Base = Total Income − Tax-Free Threshold
Step B — Compute gross slab tax:
Gross Tax = Σ (Slab Width × Slab Rate)
Step C — Compute investment rebate:
Rebate = min( 3% × Total Income, 15% × Eligible Investment, ৳10,00,000 )
Step D — Apply minimum tax floor:
Final Tax = max( Gross Tax − Rebate, Minimum Tax )
Step E — Add surcharge (if net worth > ৳4 crore):
Total Tax = Final Tax + (Final Tax × Surcharge Rate)
Step F — Compute net payable / refund:
Net = Total Tax − Already Paid
If Net is negative → refund. If positive → amount still payable.
❓ Frequently Asked Questions
Common questions about Bangladesh income tax, answered simply.
Who needs to file an income tax return in Bangladesh?
Any individual whose total income exceeds the tax-free threshold must file a return. Additionally, certain professionals, business owners, and holders of specific assets (vehicles, large bank balances) must file regardless of income level under the "universal self-assessment" rules.
What is the deadline for filing the income tax return?
The standard deadline is 30 November of the assessment year (e.g., 30 November 2026 for AY 2026-27). The NBR often extends the deadline by a few months. Check the NBR website for the current year's deadline.
Is TDS deducted by my employer the final tax?
No. TDS (Tax Deducted at Source) is a prepayment of your tax. When you file your return, your actual liability is computed. If TDS exceeds your liability, you get a refund; if less, you pay the difference.
Can I claim a rebate on my spouse's or child's insurance premium?
Yes, in certain cases. Life insurance premiums paid for a spouse or dependent children may be eligible for rebate, subject to the 10%-of-sum-insured cap and the overall rebate limit. Consult a tax professional for your specific case.
What happens if I don't file a return?
Penalties include a fine of up to 10% of the tax assessed, additional monthly interest, and potential restrictions on services (e.g., trade license, bank loans, vehicle registration). Non-filing can also lead to legal action.
Is this calculator accurate for the current year?
This calculator follows the Income Tax Act 2023 and the Finance Acts up to AY 2027-28. Tax laws change with each annual Finance Act, so always verify with the latest NBR circulars or a tax professional before filing.
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