🇧🇩 Bangladesh tax

• Limit: BDT 400k/yr ≈ $3,250

Residents of Bangladesh are taxed on income from all sources, in and outside Bangladesh, on a scale of nil up to BDT 400,000, (≈ $3,250) then 10%, 15%, 20%, 25% and 30% (tax years 2026-27 and 2027-28), with a minimum tax of BDT 5,000 (≈ $41) once income exceeds the tax-free limit; one third of employment income, up to BDT 500,000, (≈ $4,060) is exempt. ^{1 2 3}

Taxed on

Total income from employment, rent, agriculture, business, capital gains, financial assets and other sources; one third of income from employment or BDT 500,000, (≈ $4,060) whichever is less, is exempt from total income; the scale is set by the Finance Act (2026 for tax years 2026-27 and 2027-28).

Who it applies to

• An individual is resident for an income year if present in Bangladesh for 183 days or more in that year, or for 90 days or more in that year and 365 days or more in the four preceding years.
• Residents are taxed on income accruing or arising in Bangladesh or outside it, and on income received in or outside Bangladesh.
• Scale for tax years 2026-27 and 2027-28 (Finance Act 2026): first BDT 400,000 (≈ $3,250) nil; next BDT 300,000 (≈ $2,440) 10%; next BDT 400,000 (≈ $3,250) 15%; next BDT 500,000 (≈ $4,060) 20%; next BDT 2,000,000 (≈ $16,200) 25%; the remainder 30%.
• Higher tax-free limits: BDT 450,000 (≈ $3,650) for women and taxpayers aged 65 or over; BDT 525,000 (≈ $4,260) for third-gender taxpayers and persons with disabilities; BDT 550,000 (≈ $4,460) for gazetted war-wounded freedom fighters and gazetted July 2024 fighters; plus BDT 50,000 (≈ $410) for each disabled child or dependant of a parent or guardian.
• Minimum tax: BDT 5,000 (≈ $41) once total income exceeds the tax-free limit (BDT 1,000 (≈ $8) for new taxpayers), even if the computed tax is lower, zero or negative.
• Employment income: one third of income from employment, up to BDT 500,000, (≈ $4,060) is exempt from total income.
• Surcharge on the computed tax by net wealth shown in the statement of assets and liabilities: nil up to BDT 40 million (≈ $325,000) (4 crore); 10% above that up to BDT 100 million (≈ $812,000), or for a person holding more than one motor car or a house property over 8,000 square feet; 20% above BDT 100 million (≈ $812,000) up to BDT 200 million (≈ $1,620,000); 30% above BDT 200 million (≈ $1,620,000) up to BDT 500 million (≈ $4,060,000); 35% above BDT 500 million (≈ $4,060,000).

Exclusions

• Non-residents are taxed only on income accruing, arising or deemed to arise in Bangladesh, or received in Bangladesh.
• The scale does not apply to income of tobacco product manufacturers from that business.

Limits

• BDT 400,000 a year (≈ $3,250) · Tax-free income limit for general taxpayers, tax years 2026-27 and 2027-28
• BDT 450,000 a year (≈ $3,650) · Tax-free limit for women and taxpayers aged 65 or over
• BDT 525,000 a year (≈ $4,260) · Tax-free limit for third-gender taxpayers and persons with disabilities
• BDT 550,000 a year (≈ $4,460) · Tax-free limit for gazetted war-wounded freedom fighters and gazetted July 2024 fighters
• BDT 5,000 a year (≈ $41) · Minimum tax once total income exceeds the tax-free limit (BDT 1,000 (≈ $8) for new taxpayers)
• BDT 500,000 a year (≈ $4,060) · Cap on the employment income exemption (one third of income from employment, whichever is less), from tax year 2025-26

Days in the country

• At least 183 days in income year · An individual present in Bangladesh for 183 days or more in the income year is resident.
• At least 90 days in income year, with 365 days in the four preceding years · An individual present for 90 days or more in the income year and for 365 days or more in the four preceding years is resident.

Tax residence

Residence is tested on days present in Bangladesh in the income year, not on visa status.

Visas

Immigration status does not decide tax residence.

Other taxes

Surcharge on high net wealth applies on top of the income tax; VAT and social contributions are separate.

Checked against official sources on 12 Oct 2026Change log