Income Tax 2026-27: What Changed for Individual Taxpayers (Finance Act 2026)

By the Rebate Bhai team · Updated 17 October 2026 · Figures checked against the NBR Income Tax Guide 2026-27

The Finance Act 2026 amended the Income Tax Act 2023 and replaced the Source Tax Rules 2024 with the Source Tax Rules 2026, with effect from 1 July 2026. For individuals, it governs the return for income year 2025-26 that you file in assessment year 2026-27. Some of the changes trace back to the Finance Ordinance 2025, which set this year's rates in advance; the Finance Act 2026 then raised the tax-free limits further. Here is what changed compared with last year's return — and what it means in taka.

1. Higher tax-free limits

Every limit rose by ৳50,000 — ৳25,000 through the Finance Ordinance 2025, which also added the July-fighter category, and another ৳25,000 through the Finance Act 2026 — and fighters injured in the July 2024 uprising now share the highest limit with war-wounded freedom fighters. Tax-free limit guide →

2. Tighter slabs above the limit

The 5% band is gone, and the 10% and 15% bands are narrower, so income reaches the 15% and 20% rates sooner than it did. The general table above is shown; every category has the same bands above its own limit. This restructuring came from the Finance Ordinance 2025.

3. What that means for a salary

The two changes pull in opposite directions. For a general-category salary with no other income, this is the slab tax before the investment rebate and the minimum tax:

Below about ৳57,000 a month the higher limit wins and the slab tax falls a little — though at these levels the ৳5,000 minimum tax usually decides the bill anyway. Between about ৳57,000 and ৳87,000 the two effects cancel exactly: the tax is what it was last year. From about ৳88,000 a month (৳7,04,000 of taxable income) the narrower slabs win and the tax rises — by ৳5,000 at ৳1,00,000 a month, ৳32,500 at ৳2,00,000 to ৳3,00,000, and ৳45,000 at ৳5,00,000. Women, seniors and the other categories see the same pattern, moved up by their larger limit.

Take ৳1,50,000 a month, or ৳13,00,000 of taxable income. Last year: nothing on the first ৳3,50,000, ৳5,000 on the next ৳1,00,000 at 5%, ৳40,000 on ৳4,00,000 at 10% and ৳67,500 on the last ৳4,50,000 at 15% — ৳1,12,500. This year: nothing on the first ৳4,00,000, ৳30,000 on ৳3,00,000 at 10%, ৳60,000 on ৳4,00,000 at 15%, and ৳40,000 on the last ৳2,00,000, which now falls in the 20% band — ৳1,30,000. That is ৳17,500 more: the 5% band is gone and the top ৳2,00,000 of income now sits in the 20% band instead of the 15% one.

4. One minimum tax for the whole country

Last year the minimum tax depended on where you lived: ৳5,000 in the Dhaka North, Dhaka South and Chattogram city corporations, ৳4,000 in other city corporations and ৳3,000 elsewhere. This year it is ৳5,000 everywhere, or ৳1,000 for a new taxpayer. So someone just over the limit in Rajshahi, Khulna or a district town now pays more than last year. The single nationwide minimum also came from the Finance Ordinance 2025.

5. Tax Day is gone

There is no 30 November deadline any more. You can file at any time in the assessment year, 1 July 2026 to 30 June 2027, but the date changes the bill: 5% off (up to ৳25,000) by 30 September, nothing extra from October to December, at least ৳3,000 extra from January to March and at least ৳5,000 extra from April to June. After 30 June 2027, a late return pays 10% more (at least ৳5,000) and loses most exemptions. Filing guide →

6. Online filing for almost everyone

NBR Special Order 1/2026, dated 28 June 2026, makes e-filing at etaxnbr.gov.bd compulsory for every individual except taxpayers aged 65 or over, persons with disability or special needs, Bangladeshis living abroad, representatives of deceased taxpayers and foreign nationals working in Bangladesh. You need a TIN and a biometric-verified mobile number to register.

7. Capital gains on gold and developer flats

• Gains on personal gold, silver, jewellery, gems, coins, precious metals, artwork, antiques and club membership are capital gains, taxed at 5% for individuals.
• Tax on a gain from flats or cash received from a developer for your land — 15% — can be paid in three equal instalments over three assessment years.

The ৳50,00,000 yearly exemption on listed-share gains continues, and excludes sponsor, director and placement holdings. Capital gains guide →

What stayed the same

The 20%, 25% and 30% bands keep the same widths, and the extra ৳50,000 of tax-free income for each child with a disability is unchanged.

What to do now

1. Work your tax out again with this year's numbers rather than copying last year's return.
2. If you earn more than about ৳88,000 a month, expect a bigger bill, and size your rebate investments to it.
3. File by 31 December 2026 to avoid the January charge.
4. If you sold gold or received flats from a developer, account for the new rules in this return.