Skip to content 
If you are looking for the latest income tax rates in Bangladesh 2026-27, understanding the current tax-free threshold, tax slabs, minimum tax, and applicable taxpayer benefits is important for proper tax planning and compliance. For Assessment Years 2026-27 and 2027-28, Bangladesh has introduced a revised individual income tax structure. This article explains the current tax rates and important changes based on official information published by the National Board of Revenue (NBR).
Latest Income Tax Rates in Bangladesh 2026-27
For Assessment Years 2026-27 and 2027-28, individual taxpayers are subject to the following progressive income tax rates:
| Taxable Income Slab | Tax Rate |
|---|---|
| First Tk. 3,75,000 | 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% |
| Remaining Income | 30% |
The first Tk. 3,75,000 is tax-free for general individual taxpayers. Income above this threshold is calculated progressively according to the applicable slabs.
Tax-Free Income Limit in Bangladesh 2026-27
Different categories of taxpayers may receive different tax-free thresholds.
General Taxpayers
Tax-free income limit: Tk. 3,75,000
Women Taxpayers and Senior Citizens
Tax-free income limit: Tk. 4,25,000 (Applicable to women and taxpayers aged 65 years or above).
Persons with Disabilities and Third-Gender Taxpayers
Tax-free income limit: Tk. 5,00,000
Gazetted War-Wounded Freedom Fighters and Gazetted July Warriors
Tax-free income limit: Tk. 5,25,000
An additional tax-free allowance may also apply to parents or legal guardians of eligible physically challenged children, subject to the applicable conditions.
Key Income Tax Changes in Bangladesh 2026-27
Increase in Tax-Free Income Limit
For general taxpayers, the tax-free threshold has increased from Tk. 3,50,000 to Tk. 3,75,000 for Assessment Years 2026-27 and 2027-28.
Removal of the 5% Tax Slab
The previous 5% slab has been removed from the revised individual tax structure. Under the new structure:
| Income Slab | Tax Rate |
|---|---|
| First Tk. 3,75,000 | 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% |
| Remaining Income | 30% |
Minimum Income Tax
A minimum tax of Tk. 5,000 applies where the relevant conditions under the applicable tax law are met. Taxpayers should therefore consider both their calculated tax liability and applicable minimum-tax provisions when preparing their tax position.
TIN and Tax Compliance
Taxpayers should also comply with applicable requirements relating to TIN, return filing, documentation, tax payments, and other obligations under the Income Tax Act, 2023 and subsequent amendments. The NBR publishes the current Income Tax Act and related amendments through its official regulations portal.
Example of Income Tax Calculation
Suppose a general taxpayer has taxable income of Tk. 12,00,000.
Calculation Breakdown:
First Tk. 3,75,000 × 0% = Tk. 0
Next Tk. 3,00,000 × 10% = Tk. 30,000
Next Tk. 4,00,000 × 15% = Tk. 60,000
Remaining Tk. 1,25,000 × 20% = Tk. 25,000
Total Tax = Tk. 1,15,000
This is a basic slab calculation. Actual tax liability may be affected by applicable rebates, withholding tax, advance tax, minimum-tax provisions, and other relevant rules.
Who Is Affected by the 2026-27 Tax Structure?
The revised tax structure may be relevant to:
- Salaried employees
- Business owners
- Professionals
- Consultants
- Freelancers
- Investors
- Entrepreneurs
- Individuals with multiple sources of income
Comparison: Old vs. New Income Tax Slabs in Bangladesh
The revised structure increases the general tax-free threshold and removes the previous 5% slab.
| Feature | Previous Structure | AY 2026–27 |
|---|---|---|
| General Tax-Free Limit | Tk. 3,50,000 | Tk. 3,75,000 |
| Lowest Positive Rate | 5% | 10% |
| Highest Individual Rate | 30% | 30% |
| Tax Structure | Previous slab system | Revised progressive slabs |
Why Choose Kazol & Associates?
Tax matters can involve more than simply calculating the applicable slab. A taxpayer may need assistance with return filing, tax notices, assessments, audits, appeals, disputes, documentation, or compliance.
Kazol & Associates provides legal assistance for individuals, businesses, entrepreneurs, and NRBs in various income tax matters. Our tax legal services include:
- Income tax return assistance
- Tax planning and compliance
- Tax assessment matters
- Tax audit assistance
- Tax notice response
- Tax appeals
- Tax dispute resolution
- Corporate income tax advice
- Tax documentation review
- Representation before relevant authorities
Tax Planning and Legal Compliance
Understanding the tax rate is only one part of tax compliance. Taxpayers may also need to consider:
- Total income from different sources
- Taxable and exempt income
- Applicable tax rebates
- Tax deducted at source
- Advance tax
- Minimum tax
- TIN requirements
- Return-filing obligations
- Supporting documents and records
The NBR has also launched the 2026-27 e-Return system for individual taxpayers, making online return filing an important part of current tax compliance.
You can explore our dedicated Income Tax Law Services page for more information about the tax-related legal services offered by Kazol & Associates.
Frequently Asked Questions (FAQs)
What are the latest income tax rates in Bangladesh for 2026-27?
What is the tax-free income limit in Bangladesh in 2026-27?
What is the tax-free limit for women and senior citizens?
What is the highest individual income tax rate in Bangladesh?
Has the 5% tax slab been removed?
Where can I find the official income tax law?
Contact Kazol & Associates for Income Tax Legal Assistance
Income tax matters can become complicated when they involve assessments, notices, audits, disputes, appeals, business taxation, or multiple sources of income. If you need professional assistance with income tax planning, return-related matters, tax compliance, tax notices, assessments, appeals, or tax disputes, Kazol & Associates can help you understand your legal position and available options.
Contact Kazol & Associates today to discuss your income tax matter with an experienced legal team in Bangladesh:
