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| Updated Individual Income Tax Rates for Assessment Years 2026–2027 and 2027–2028 under the Finance Act, 2026 (Bangladesh). |
Individual income tax is a tax imposed by governments on the income earned by individuals, including wages, salaries, bonuses, rental income, investment gains, and other forms of income. It is one of the primary sources of revenue for governments to fund public services and programs. The tax rates, regulations, and structures can vary widely from one country to another.
Updated (30 June 2026) Individual Income Tax Rates for the Assessment Years 2026–2027 and 2027–2028:
Under the Income Tax Act, 2023 (Act No. 12 of 2023), in accordance with Section 2(69), the income tax payable by an individual (including a non-resident Bangladeshi individual and also a Hindu undivided family) shall be calculated on their Total Income at the following rates:
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AY-2026-2027 and 2027-2028 |
|
|
Income Slab |
Rate of Tax |
|
Up to BDT 400,000 |
Nil |
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On the next BDT.3,00,000 |
10% |
|
On the next BDT.4,00,000 |
15% |
|
On the next BDT.5,00,000 |
20% |
|
On the next BDT.20,00,000 |
25% |
|
On the remaining balance |
30% |
Provided that—
(a) For a resident individual, the tax-free income threshold shall be Tk. 400,000.
(b) For a female taxpayer and a taxpayer aged 65 years or above, the tax-free income threshold shall be Tk. 450,000.
(C) Persons with Disabilities and Third Gender Taxpayers: The tax-free income threshold shall be Tk. 5,25,000.
(d) For a gazetted freedom fighter and a person with a disability, and Gazetted July -2024 Warriors, the tax-free income threshold shall be Tk. 5,50,000.
(e) Where a taxpayer has one or more children with disabilities, the tax-free income threshold shall be increased by Tk. 50,000 for each such child.
(f) These benefits shall also apply to:
- A Non-Resident Bangladeshi (NRB); and
- A person of Bangladeshi origin.
(f) After allowing the tax-free income threshold, the minimum tax payable shall be Tk. 5,000. However, for a new taxpayer, the minimum tax payable shall be Tk. 1,000.
Frequently Asked Questions (FAQs):
FAQ 1
What are the Individual Income Tax Rates for Assessment Years 2026–2027 and 2027–2028 in Bangladesh?
The Finance Act 2026 introduced revised individual income tax rates for the Assessment Years 2026–2027 and 2027–2028. The tax structure includes progressive tax slabs ranging from 0% to 30%, with higher tax-free income thresholds for eligible taxpayers.
FAQ 2
What is the tax-free income threshold for individual taxpayers?
The general tax-free income threshold has been increased. Higher exemption limits are also available for women, senior citizens, persons with disabilities, and gazetted freedom fighters, subject to the provisions of the Finance Act 2026.
FAQ 3
Who can claim a higher tax-free income limit in Bangladesh?
The following taxpayers may qualify for higher tax-free income thresholds:
- Women taxpayers
- Senior citizens (65 years and above)
- Persons with disabilities
- Gazetted freedom fighters
- Eligible taxpayers with children with disabilities
- Non-Resident Bangladeshis (NRBs) and persons of Bangladeshi origin, where applicable under the law.
FAQ 4
Which law governs the Individual Income Tax Rates for AY 2026–2027 and 2027–2028?
The applicable tax rates are prescribed under the Income Tax Act, 2023, as amended by the Finance Act, 2026, effective from 30 June 2026.