Understanding the Income tax slab in Bangladesh 2025‑26 is essential if you are a taxpayer, salaried individual, business owner, or planning your tax filing for this fiscal year. In this guide, we break down the latest income tax rates, how the slabs work, exemptions, and what you need to know before filing your taxes.
What Is the Income Tax Slab in Bangladesh 2025‑26?
The Income tax slab in Bangladesh 2025‑26 refers to the tiered tax structure that determines how much income tax an individual must pay based on annual taxable earnings.
According to the latest Finance Ordinance and the National Board of Revenue (NBR), the updated tax slabs for resident individuals and similar taxpayers for the assessment year 2025‑26 (income earned from July 1, 2025 to June 30, 2026) are as follows
| Annual Taxable Income (BDT) | Tax Rate (%) |
|---|---|
| First 350,000 | 0% |
| Next 100,000 | 5% |
| Next 400,000 | 10% |
| Next 500,000 | 15% |
| Next 500,000 | 20% |
| Next 2,000,000 | 25% |
| Rest of income | 30% |
This progressive structure ensures taxpayers only pay higher rates on income that falls above each threshold.
How the Income Tax Slab in Bangladesh 2025‑26 Works
Tax‑Free Threshold and Exemptions
Under the Income tax slab in Bangladesh 2025‑26, the first BDT 350,000 of taxable income remains tax‑free for most general taxpayers.
This means if your annual income is BDT 350,000 or below, you are not required to pay personal income tax.
Progressive Tax Rates After Tax‑Free Limit
Once your income exceeds the tax‑free threshold:
Income from BDT 350,001 to 450,000 is taxed at 5%
Income from BDT 450,001 to 850,000 is taxed at 10%
Income from BDT 850,001 to 1,350,000 is taxed at 15%
Income from BDT 1,350,001 to 1,850,000 is taxed at 20%
Income from BDT 1,850,001 to 3,850,000 is taxed at 25%
Any income above that is taxed at 30%
This progression reflects the Income tax slab in Bangladesh 2025‑26 designed by the government to balance revenue with taxpayer burden.
Special Exemptions and Minimum Tax Details
While the standard tax‑free limit is BDT 350,000, certain categories like women, senior citizens, third‑gender individuals, disabled persons, and freedom fighters receive additional exemptions under separate provisions.
Minimum tax rules may apply if your computed tax is below a certain amount after exemptions. For example, taxpayers filing for the first time may have a different minimum tax requirement depending on their location and income type. The Daily Star
Frequently Asked Questions (FAQ)
What is the tax‑free income limit under the Income tax slab in Bangladesh 2025‑26?
The standard tax‑free limit is BDT 350,000 for most individual taxpayers for the tax year 2025‑26. Prothomalo
What is the highest tax rate in the Income tax slab in Bangladesh 2025‑26?
The highest rate under the 2025‑26 slab is 30% for income exceeding approximately BDT 3,850,000.
Are there exemptions for special categories under the Income tax slab in Bangladesh 2025‑26?
Yes — women, senior citizens, third‑gender, disabled persons, and certain war‑wounded freedom fighters may have higher tax‑free thresholds or additional relief, depending on eligibility.
How can I calculate my tax under the Income tax slab in Bangladesh 2025‑26?
You calculate tax by applying the tax rates progressively to income above each threshold in the slab structure, then summing the tax due in each bracket.
Ready to File Your Taxes? Here’s What to Do Next
Whether you’re an individual taxpayer or a business owner, understanding the Income tax slab in Bangladesh 2025‑26 helps you accurately estimate tax obligations and plan ahead. For professional guidance, expert filing support, or tax dispute assistance, consider connecting with trusted legal tax advisors and lawyers listed on UkilBD — Bangladesh’s largest law directory: Find the best lawyer all in one place .
