Income Tax Calculator (Bangladesh)
Income tax on the FY2024-25 slabs, after the investment rebate is taken off.
Recent
Formula
How the calculation works
The tax is progressive: the first bracket is free, and each bracket after it taxes only the slice that falls inside it. Earning 900,000 does not put the whole sum on one rate -- the first 350,000 is free and the rest is taxed in steps. That is why the effective rate is always lower than the top rate the income reaches.
The investment rebate is then taken off the tax, and it is the smallest of three limits: 15% of the eligible investment, 3% of the taxable income, and one million taka. Because it is the smallest of the three, a large investment stops helping once one of the other two limits is reached.
Common mistakes
- Applying the top rate to the whole income, which overstates the tax badly on a middle income.
- Forgetting that the threshold is higher for women and for taxpayers over 65; the default here is the general one.
- Assuming the rebate is 15% of the investment with no cap -- the 3%-of-income and one-million limits usually bite first.
- Reading the result as final. Minimum tax by city and the wealth surcharge are not included, and the page says so.
When to use it
- Use it to estimate the year's tax and to see how much a rebate-eligible investment actually saves.
- It is not a return. File against the official form, and check the current year's Finance Act -- the slabs here are FY2024-25.
Worked example
900,000 income with a 350,000 threshold: 550,000 taxable, slab tax 42,500, rebate 16,500, so 26,000 is due.
Common questions
Why is the threshold 350,000?
That is the general threshold for a male taxpayer. For women and taxpayers over 65 it is higher (usually 400,000), and higher still for a person with a disability. Enter whichever applies to you.
Why are the minimum tax and surcharge missing?
Because they depend on facts this form does not ask for: the minimum tax on the city, the surcharge on total wealth. A guess would give a wrong figure, so they are left out and the page says so.
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