In this article on Bangladesh Income Tax Update 2025-2026, you will get a complete breakdown of the new tax rates, proposed slabs, and key changes affecting individuals and businesses. From tax-free thresholds to minimum tax rules and special exemptions, everything you need to know about the upcoming fiscal year’s income tax framework in Bangladesh is explained clearly and concisely.
For professional help, consult a best tax lawyer in Bangladesh.
Overview of Bangladesh Income Tax 2025-2026 Update
Income tax in Bangladesh is levied on the worldwide income of residents and the Bangladesh-source income of non-residents. The National Board of Revenue (NBR) manages tax collection, filing, and enforcement.
Key points:
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Tax applies to individuals, companies, partnerships, and associations.
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Different rates exist for salaried and non-salaried individuals.
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Recent updates in tax policies influence how much taxpayers owe each year.
Recent Changes in Bangladesh Tax Policy (FY 2025/26)
| Change / Area | Description / Key Points |
|---|---|
| Tax-Free Income Threshold | For general individual taxpayers, the tax-free income limit increased to BDT 375,000. |
| Number of Tax Slabs Changed | Previous 7-step slab structure replaced with a 6-step progressive tax slab system. |
| Top Tax Rate Increase | Highest income bracket now taxed at 30%. |
| Special Group Exemptions / Rebates Updated | Revised thresholds for women, senior citizens (65+), persons with disabilities, third gender, and freedom fighters. |
| Minimum Tax for New Taxpayers | Ensures all new taxpayers pay a minimum amount based on revenue. |
| Tax-Exemption Policy Overhaul | Previous discretionary exemptions phased out; only parliament-approved exemptions will apply. |
| Goal to Expand Tax Net | Targeting increased active taxpayers through online filing support and awareness programs. |
Key Notes
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The BDT 375,000 tax-free threshold is proposed for FY 2025/26, but its effective implementation may vary.
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Updated slabs and rates increase the tax burden for middle- and high-income earners.
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Changes to exemptions and rebates may require previously privileged taxpayers to recalculate their liabilities.
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Expanded online filing and simplified procedures aim to formalize more taxpayers but also require increased compliance awareness.
Latest Income Tax Slabs and Example Calculation (Resident Individual / NRI)
FY 2025/26 & 2026/27 Tax Slabs
| Total Income (BDT) | Tax Rate (%) |
|---|---|
| First 375,000 | Nil |
| Next 300,000 | 10% |
| Next 400,000 | 15% |
| Next 500,000 | 20% |
| Next 2,000,000 | 25% |
| On rest of the income | 30% |
Example 1: Annual Income BDT 1,000,000
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First 375,000 → 0% → 0 BDT
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Next 300,000 → 10% → 30,000 BDT
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Next 325,000 → 15% → 48,750 BDT
Total Tax = 0 + 30,000 + 48,750 = 78,750 BDT
Example 2: Annual Income BDT 2,500,000
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First 375,000 → 0% → 0 BDT
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Next 300,000 → 10% → 30,000 BDT
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Next 400,000 → 15% → 60,000 BDT
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Next 500,000 → 20% → 100,000 BDT
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Next 825,000 → 25% → 206,250 BDT
Total Tax = 0 + 30,000 + 60,000 + 100,000 + 206,250 = 396,250 BDT
Key Notes
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The first 375,000 BDT is tax-free for all resident individuals and NRIs who are Bangladeshi citizens.
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Slabs progressively increase, with the highest rate of 30% applying to income above 3,575,000 BDT.
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These examples help salaried individuals, business owners, and NRBs calculate approximate tax liability.
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For accurate tax planning or filing, it is recommended to consult a professional: best tax lawyer in Bangladesh.
Corporate Update 2025-26 Income Tax Rates in Bangladesh
| Company Type / Sector | Corporate Tax Rate (%) |
|---|---|
| Listed companies | 25% |
| Non-listed companies | 32.5% |
| Banking and insurance sectors | 40% |
| Mobile phone operators / telecom | 45% |
| Export-oriented industries | 20% (reduced, subject to conditions) |
| Non-resident companies | 40% |
Notes:
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Export-oriented industries usually enjoy a reduced corporate tax rate.
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Special sectors such as tobacco, mobile operators, and petroleum are subject to different tax rates.
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It is crucial to check the latest updates and official circulars for accurate rates. (NBR Official Site)
Special Exemption Limits for Women, Seniors, and Others
Not everyone has the same tax-free limit. Check your eligibility:
| Category | Exemption Limit (BDT) |
|---|---|
| General taxpayers | 375,000 |
| Women & Senior Citizens (65+) | 425,000 |
| People with Disabilities | 500,000 |
| Third-Gender Individuals | 500,000 |
| War-wounded Freedom Fighters | 525,000 |
| Parent of a Disabled Child | Extra 50,000 per child |
This means, for example, a woman aged 65 gets the first 425,000 BDT of income tax-free.
Tax Guide for NRB (Non-Resident Bangladeshis)
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Who Qualifies: Bangladeshi citizens living abroad >182 days in a fiscal year.
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Taxable Income: Bangladesh-sourced income only — salary, rent, dividends, capital gains. Foreign income is usually exempt.
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Tax Rates: Special NRB rates or treaty-based reductions; business/corporate income taxed normally.
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Filing Requirement: Obtain TIN and file returns via NBR portal before the deadline.
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Double Taxation Treaties: Claim relief or credit in the home country to avoid double taxation.
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Payment & Compliance: Pay via official channels; non-compliance leads to fines or penalties.
For professional help, consult a best tax lawyer in Bangladesh.
For official rules, visit the NBR Official Site.
FAQs on Bangladesh Income Tax Update 2025-2026
From July 1, 2025 (FY 2025–26), for Assessment Year 2026–27.
Any individual earning income—salaried employees, self-employed, freelancers, or business owners.
FY 2025–26: BDT 350,000 for general taxpayers. Special groups (women, seniors 65+, persons with disabilities, third gender, freedom fighters) enjoy higher limits.
Yes! Women and citizens aged 65+ enjoy a bigger tax-free income limit.
Penalties and even legal action may apply, so always file on time!
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0% up to tax-free threshold
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10% for the next slab
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15%, 20%, up to 25% for higher slabs
Yes. Regular taxpayers: BDT 3,000; first-time or low-income taxpayers: BDT 1,000.
For a full step‑by‑step guide to submitting tax returns: How to Submit Tax in Bangladesh — Rashel’s Law Desk”
Visit the NBR Bangladesh website or consult a tax professional.
Conclusion
Bangladesh’s latest income tax reforms (FY 2025–26) introduce higher tax slabs, adjusted tax-free thresholds, minimum tax provisions, and special exemptions for women, seniors, disabled, third gender, and freedom fighters. The 5% slab has been removed, raising the effective burden on middle-income earners, while first-time or low-income taxpayers benefit from a reduced minimum tax.
