For assessment year 2026-27 (income year 2025-26) the tax-free limit for a general taxpayer is ৳4,00,000, and income above it is taxed in slabs from 10% to 30%. For example, a ৳9 lakh annual salary with ৳1 lakh of eligible investment gives ৳10,000 of tax, about ৳833 a month.
Income year
If more than one applies, pick the one with the higher tax-free limit
৳
= 9 lakh taka
৳
Business, rent, interest etc. — 0 if none
৳
= 1 lakh taka
More details (optional)
৳
Tax deducted from salary, savings certificates or bank interest
As a parent or guardian, the tax-free limit rises by ৳50,000 per dependent (one taxpayer may claim)
Total income tax for the year
৳10,000
About ৳833 a month
Taxable income
৳6,00,000
Tax-free limit
৳4,00,000
Tax before rebate
৳20,000
Investment rebate
− ৳10,000
Effective tax rate
1.11%
For income year 2025-26 your total income tax is ৳10,000, about ৳833 a month.
Parts of these rules are still being verified — check the NBR guide before filing.
How this was calculated
Salary exemption: one-third of salary or ৳5,00,000, whichever is lower = ৳3,00,000
Taxable income = ৳9,00,000 − ৳3,00,000 + ৳0 = ৳6,00,000
Tax-free limit (General) = ৳4,00,000
Slab tax on income above the limit = ৳20,000
Investment rebate: lowest of 3% of taxable income, 10% of investment or ৳7,50,000 = ৳10,000
Total income tax = ৳10,000; divided by 12 = ৳833 a month
Pick the income year. The return you are filing now is for income year 2025-26 (assessment year 2026-27).
Choose your taxpayer type: general, woman or 65+, person with disability or third gender, or war-wounded freedom fighter / July fighter.
Enter your total annual salary. Shorthand like ‘9 lakh’ or ‘9L’ works. Add any other income.
Enter what you invested in the year in savings certificates, DPS, life insurance and so on. The rebate is worked out for you.
Optionally open ‘More details’ to add tax already deducted, when you will file and whether you are a new taxpayer. You get the yearly and monthly tax and the full slab-by-slab working.
How income tax is calculated
The calculation has four steps:
Taxable income: take your total salary and subtract the salary exemption — one-third of salary or ৳5,00,000, whichever is lower. Add business, rent or other income.
Slab tax: tax the income above your tax-free limit at the rates in the table below, slab by slab.
Investment rebate: subtract the lowest of 3% of taxable income, 10% of investment, or ৳7,50,000.
Minimum tax: if income is above the tax-free limit, tax is at least ৳5,000 (৳1,000 for new taxpayers).
Rates: income years 2025-26 and 2026-27 (assessment years 2026-27 and 2027-28)
Income above the tax-free limit
Rate
First ৳3,00,000
10%
Next ৳4,00,000
15%
Next ৳5,00,000
20%
Next ৳20,00,000
25%
Remaining income
30%
Tax-free limits
Taxpayer
Tax-free limit
General
৳4,00,000
Women and people aged 65+
৳4,50,000
Persons with disability and third gender
৳5,25,000
Gazetted war-wounded freedom fighters and July fighters
৳5,50,000
Parent/guardian (one) of a person with disability
a further ৳50,000
Examples
Example 1: ৳75,000 monthly salary
Annual salary ৳9,00,000, investment ৳1,00,000, general taxpayer.
Salary exemption: ৳9,00,000 ÷ 3 = ৳3,00,000
Taxable income: ৳9,00,000 − ৳3,00,000 = ৳6,00,000
Above the limit: ৳6,00,000 − ৳4,00,000 = ৳2,00,000, taxed at 10% = ৳20,000
Rebate: lowest of ৳18,000 (3% of income), ৳10,000 (10% of investment) and ৳7,50,000 = ৳10,000
Income tax ৳10,000, about ৳833 a month
Example 2: ৳30 lakh annual salary
Investment ৳5,00,000.
Salary exemption: one-third would be ৳10 lakh, but the cap is ৳5,00,000
Taxable income: ৳25,00,000
Tax: ৳30,000 (10%) + ৳60,000 (15%) + ৳1,00,000 (20%) + ৳2,25,000 (25% of the remaining ৳9 lakh) = ৳4,15,000
Rebate: lowest of ৳75,000, ৳50,000 and ৳7,50,000 = ৳50,000
Income tax ৳3,65,000
What to know in Bangladesh
Income year vs assessment year: income earned from July 2025 to June 2026 is income year 2025-26, and its return is filed in assessment year 2026-27. News reports saying “2026-27” usually mean the assessment year.
Year-round filing: from the Finance Act 2026 you can file at any time, but the timing decides whether you get a rebate or pay additional tax. Use ‘When you file the return’ in the calculator to see the effect.
Eligible investments: life insurance premiums, provident fund contributions, DPS (up to ৳1,20,000 a year), savings certificates and government bonds, listed shares and mutual funds, donations to approved institutions and more. Each can have its own limit.
Not covered here: the net-wealth surcharge (net assets above ৳4 crore), the environmental surcharge on cars, income taxed at reduced or final rates, and business-specific rules. Get professional advice or check the NBR guide if these apply.
More: why the salary exemption, rebate and minimum tax matter
The salary exemption. The Income Tax Act 2023 replaced separate exemptions for house rent, medical and conveyance allowances with one exemption: one-third of total salary, up to ৳5 lakh. That is why a general taxpayer earning up to ৳50,000 a month stays under the tax-free limit.
Getting the full rebate. The rebate can never exceed 3% of taxable income, so investing more than 30% of income adds nothing. With ৳6 lakh of taxable income the maximum rebate is ৳18,000, which ৳1,80,000 of investment already reaches.
Minimum tax. If income is just above the limit, slab tax can be very small, say ৳1,000, but you still pay at least ৳5,000. The investment rebate cannot bring tax below the minimum.
Tax deducted at source. Tax already deducted from salary, bank interest or savings certificate profit is subtracted from your total tax in the return. Enter it under ‘More details’ to see what is left to pay or what may be refunded.
Frequently asked questions
What is the tax-free income limit for 2026-27?
Under the Finance Act 2026 the limit is ৳4,00,000 for general taxpayers, ৳4,50,000 for women and people aged 65 or over, ৳5,25,000 for persons with disability and third-gender taxpayers, and ৳5,50,000 for gazetted war-wounded freedom fighters and July fighters. A parent or guardian of a person with disability gets a further ৳50,000. The budget first proposed ৳3.75 lakh; Parliament raised it to ৳4 lakh when passing the bill.
At what salary do I start paying income tax?
One-third of salary (up to ৳5 lakh) is exempt. So with salary as your only income, a general taxpayer pays tax once salary exceeds ৳6 lakh a year, or ৳50,000 a month. For women and people aged 65+ the point is ৳6,75,000 a year, or ৳56,250 a month. Other income lowers these figures.
How is income tax calculated? What are the slabs?
First the salary exemption is deducted to get taxable income. Above the tax-free limit, the first ৳3 lakh is taxed at 10%, the next ৳4 lakh at 15%, the next ৳5 lakh at 20%, the next ৳20 lakh at 25% and the rest at 30%. The old 5% slab no longer applies from 2026-27. Then the investment rebate is subtracted.
How much tax rebate do I get for investing?
The rebate is the lowest of three amounts: 3% of taxable income, 10% of your actual eligible investment, or ৳7,50,000. The Finance Act 2026 cut the investment share from 15% to 10% and the cap from ৳10 lakh to ৳7.5 lakh. For example, ৳6 lakh of taxable income and ৳1 lakh of investment gives a ৳10,000 rebate.
What is the minimum income tax?
Once taxable income crosses the tax-free limit, you pay at least ৳5,000. From assessment year 2026-27 this is the same everywhere, no longer different by city corporation. People filing their first return pay a minimum of ৳1,000.
What is the income tax return deadline?
Under the Finance Act 2026 you can file at any time of the year. Filing in July–September earns a 5% rebate on tax (up to ৳25,000). October–December has no rebate or penalty. January–March adds the higher of 2% of tax or ৳3,000, and April–June the higher of 5% or ৳5,000. Filing after 30 June costs more.
How much tax is deducted from my monthly salary?
Your employer estimates your total tax for the year and deducts one-twelfth each month. The ‘about … a month’ figure from this calculator is close to that monthly deduction. The deducted tax is adjusted in your return at year end.
What happens if I don't file a return?
If filing is mandatory for you, late or missing returns can bring additional tax and penalties. Many services also need a proof of return submission (PSR), such as buying large savings certificates or taking some loans. So file when it applies to you, even if your income is under the tax-free limit.
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