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TAX Rate

Bangladesh Individual - Taxes on personal income

Under Bangladesh tax laws, the scope of taxation differs as per the residential status of an individual for
2025-2026 Assessment years ( as per clause 12 under Income Tax law 2023 in Bangladesh.

Personal income tax rates

Resident individual or NRI who is a Bangladeshi citizen for FY 2025/26

Total Income (BDT) Tax Rate (%)
First 350,000 Nil
Next 100,000 5%
Next 400,000 10%
Next 500,000 15%
Next 500,000 20%
Next 2,000,000 25%
On rest of the income 30%
Note:
  • The basic exemption limit for women and senior citizens aged 65 years or above is BDT 400,000.
  • The basic exemption limit for taxpayers with disabilities is BDT 475,000.
  • The basic exemption limit for war wounded gazette freedom fighters is BDT 500,000.
  • The basic exemption limit for third-gender taxpayers is BDT 475,000.
  • The basic exemption limit for the parents or legal guardian of a person with disability increases by an additional BDT 50,000.
Personal income tax rates

Resident individual or non-resident individual (NRI) who is a Bangladeshi citizen for financial year (FY) 2025/26 and 2026/27

Total income (BDT) Tax rate (%)
BDT 3,75,000 Nil
Next step BDT 3,00,000 10%
Next step BDT 4,00,000 15%
Next step BDT 5,00,000 20%
Next step BDT 20,00,000 25%
Rest of the total income 30%
Note:
  • The basic exemption limit for general taxpayers is BDT 3,75,000.
  • The basic exemption limit for women and senior citizens aged 65 years or older is BDT 4,25,000.
  • The basic exemption limit for persons with physical challenges is BDT 5,00,000.
  • The basic exemption limit for freedom fighters who are war-wounded and gazette and wounded July fighters who are gazetted is BDT5,25,000.
  • The basic exemption limit for taxpayers of the third gender is BDT5,00,000.
  • The basic exemption limit for parent of physically challenged person increases by an additional BDT 50,000.

NRIs who are not Bangladeshi citizens

NRIs who are not Bangladeshi citizens are taxable at the maximum rate (i.e. 30%).

Non Bangladeshi citizens

Surcharge on total income tax

A surcharge is payable on the regular tax amount by the taxpayer if one’s net worth exceeds the prescribed threshold. The rates of surcharge are as follows:

Net wealth Rate
Up to BDT 4 crore Nil
One or more of the following:
  • Above BDT 4 crore to 10 crore
  • Ownership of more than one motor car
  • Ownership of house property having an aggregate area of more than 8,000 sq. ft.
 10% of tax payable
Above BDT 10 crore to BDT 20 crore 20% of tax payable
Above BDT 20 crore to BDT 50 crore 30% of tax payable
Above BDT 50 crore 35% of tax payable