Bangladesh Salary Tax Deduction at Source (TDS) 2026 – Finance Act 2026
July 25, 2026 | by Mohmmed Ismail Miah
Individual tax slabs
The general tax-free threshold for 2026–27 is TK 4,00,000; special taxpayer thresholds should still be reviewed before preparing returns.
Income Tax Slabs for 2026–27
General taxpayers should review the 2026–27 tax-free threshold of TK 4,00,000, slab rates, minimum tax, investment rebate rules, and surcharge obligations before submitting annual returns.
| Taxable income layer | Rate |
| First TK 4,00,000 | 0% |
| Next TK 3,00,000 | 10% |
| Next TK 4,00,000 | 15% |
| Next TK 5,00,000 | 20% |
| Next TK 20,00,000 | 25% |
| Balance | 30% |
Special tax-free thresholds
| Taxpayer category | AY 2027-28 |
| General taxpayer | Tk 4,00,000 |
| Women; men aged 65+ | Tk 4,50,000 |
| Third gender; persons with disabilities | Tk 5,25,000 |
| Gazetted freedom fighters; July fighters | Tk 5,50,000 |
Minimum tax for individual filings
- A flat TK 5,000 minimum tax applies to individuals whose income exceeds the tax-free limit, regardless of location.
- A TK 1,000 minimum tax is for new taxpayers.
How Investment Rebates Are Calculated
Investment tax rebate is calculated at the minimum of 10% of actual eligible investment, 3% of taxable income, and BDT 7,50,000. Eligible investment may include approved savings instruments, DPS, life insurance premium, and other approved investment channels, subject to proper documentation.
The tax rebate is the lowest of:
- 1.10% of actual eligible investment.
- 2.3% of taxable income.
- 3.BDT 7,50,000.
Eligible amount is the Lowest : Which ever is 3 in 1(one) Lowest: a.Actual Investment @10% ,b. 3 % of Total Income ,c.7.5 Lac (7,50,000)
Eligible for Tax Rebate are:-
| SL | Scope/ Heads of Investment | Limit / Condition of Allowable Investment |
| 1 | Life Insurace Premium(on the life of the assessee or a wife or husband or a minor child.) | a) Maximum Limit 10% of the Policy Value/Face Value/ Capital Sum Exception Bonus or other Benefits or Yearly Paid Premium. Which ever is Lower. |
| 2 | Employer’s and employee’sContribution to Provident and Others | a) Contribution Applies Probident Act-1925, b) Employers CPF not more than Employees CPF |
| 3 | Investment in Stock and Share’s,Debenture and Debenture Stock | a) At cost value of Secondery Market |
| 4 | Investment in Saving Cerrtificate, Unit Certificate | a) Investment Company may be Specified by the NBR b) Investment have been Fixed at five year’s or the Maturity Period , as the case may be . Where the Instrument are Deposited in any Income year Before the Prescribed period, tax Credit Allowed in respect of Such Instruments Will be Collected Back as tax for the Income Year and Added to Tax for that Year. Upto 5,00,000 |
| 5 | Contribution any Deposit Pension Scheme (DPS) | a) Maximum Limit Tk. 1,20, 000.00 ( any Scheduled Bank or a Financial Institution) |
| 6 | Donation to charitable Hospital approved by NBR | a) Established Outside the City Corporation area one Year Before Making Such Donation |
| 7 | Donation to Waelfare of the retared People | a) Estblished at list one year Before Making the Donation and Approved by SWD and NBR |
| 8 | Donation to Zakat Fund | a) Established Under the Zakat Fund Ordinance-1982 |
| 9 | Contribution you Benevolent Fund and Group Insurance Schame | a) Provision for his Wife, Children or Dependent Person, Paid Under Approved Insurance Scheme |
| 10 | Donation to Institution of Aga Khan Development Network | a) Donation to any Sum to any Social- Economic or Cultural Development Institute |
| 11 | Donation to Philanthropic or Educational Institute | a) Education Institution Approved by the Govet. |
| 12 | Purchase of Bangladesh Government Treasury Bond | a) Investment Company may be Specified by the NBR |
| 13 | Investment to:- a) Libaration Ware b) Memory of Father of the Nation c) Prime Minister Higher Education Fund. | a) Any Sum Paid b) For the Purchase of BGTB Shall not get Rebate, If he obtained of @ 10% tax U/S-19D |
| Income Tax Calculation | ||||||
| Tax Prayer name: | Mohammed Ismail Miah | Assessment Year: | 2027-2028 | TIN: | 575869476537 | |
| Parent or legal guardian of disability person | No | Number of disability | 0 | |||
| Select Assessee | Male | Select Location | Dhaka or Chittagong city corporation | Select Assesst | Up to 4 crore | |
| Monthly Salary | 100,000 | Gross Salary | 1,200,000 | |||
| Service Length | 12 | Basic Pay | 600,000 | House rent | 300,000 | |
| Medical allowance | 60,000 | Conveyence | 120,000 | Entertainment | 120,000 | |
| Bonus / Ex-gratia | 100,000 | Total | 1,300,000 | Exempted income | 433,333 | |
| Rebate on Net Taxable Income-3% | 26,000 | Net Taxable Income (Without Final & Minimum Tax) | 866,667 | |||
| Advance tax u/s 154/156/86/173 | – | Adjustment of Tax Refund (if any) | – | |||
| Investment Allownce for the Tax Credit | 260,000 | Rebate on Actual Investment @10% | 26,000 | |||
| Explanation | Income | Tax rate | Tax | Balance | ||
| On First | 400,000 | 0.00 | – | 466,667 | ||
| On Next | 300,000 | 0.10 | 30,000 | 166,667 | ||
| On Next | 166,667 | 0.15 | 25,000 | – | ||
| On Next | – | 0.20 | – | – | ||
| On Next | – | 0.25 | – | – | ||
| On Remaining | – | 0.30 | – | – | ||
| Income and Tax | 866,667 | 55,000 | Monthly Payable Before Invest. | |||
| Tax Leviable on Total Income | 55,000 | 4,583 | ||||
| Tax Rebate | 26,000 | |||||
| Tax Payable | 29,000 | |||||
| Surchage | – | Monthly Payable After Invest | ||||
| Total Tax Payable Including Surcharge | 29,000 | 2,417 | ||||
| Advance tax u/s 154/156 | – | |||||
| Adjustment of Tax refund (if any) | – | |||||
| Tax paid on the basis of this return (u/s 173) | – | |||||
| Net Tax Payable | 29,000 | |||||
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