Tax-Free Income Limit in Bangladesh for 2026-27, by Category

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

Every individual taxpayer in Bangladesh has a tax-free income limit: the first slice of total income, taxed at 0%. For assessment year 2026-27 — the return for income earned from July 2025 to June 2026 — the limit depends on which category you belong to. Here are the limits, what they mean for a salary, and the rules that sit around them.

The limits for 2026-27

Every category's limit is ৳50,000 higher than last year. The child allowance goes to one parent only when both are taxpayers.

What the limit means for a salary

The limit applies to total income after the salary exemption, not to gross pay. Because one-third of salary is exempt (up to ৳5,00,000), a salaried taxpayer with no other income pays nothing until gross pay reaches one and a half times the limit:

Cross the limit by even a taka and two things happen at once: the 10% slab starts, and so does the minimum tax. Above your limit you pay at least ৳5,000 — ৳1,000 as a new taxpayer — even if the slab tax and your investment rebate would leave less. So the step from just under to just over the limit is not gradual. You can't invest your way back under it, either: investments reduce your tax, not your income.

Here is that step in taka. On ৳51,000 a month a general-category employee has ৳4,08,000 of total income — ৳8,000 over the limit. The slab tax on that slice is ৳800, but the minimum tax lifts the bill to ৳5,000. A woman on exactly the same salary is still under her ৳4,50,000 limit and owes ৳0. If your salary sits just above your limit, the honest answer is that a raise can cost you ৳5,000 before it starts paying for itself.

Same salary, different category

Only the 0% slice changes between categories; the slabs above it are the same width for everyone. On a ৳1,00,000 monthly salary (৳8,00,000 of total income), that difference is worth this much:

The NBR's own Example 18 makes the same point: a woman with ৳9,80,000 of total income owes ৳64,500. A general taxpayer with identical income would owe ৳72,000 — the extra ৳50,000 of 0% band would otherwise have been taxed at 15%.

Who belongs to each category

• Women taxpayers, and any taxpayer aged 65 or over, share the ৳4,50,000 limit.
• Third-gender taxpayers and persons with disability share ৳5,25,000. Keep your disability certificate; it is also what lets you file on paper instead of online.
• The ৳5,50,000 limit is for gazetted war-wounded freedom fighters — not every freedom fighter — and gazetted fighters injured in the July 2024 mass uprising.
• The ৳50,000 child allowance is per child with a disability, for a parent or legal guardian.

Income that sits outside the limit entirely

Some income is exempt, so it never uses up your limit at all. Among the exemptions the Income Tax Guide lists:

• Agricultural income up to ৳5,00,000, if you have no income other than agriculture and financial assets.
• Income that members of small ethnic communities in Rangamati, Bandarban and Khagrachari earn from economic activity in those districts (financial-asset income excepted).
• Foreign income a Bangladeshi brings home under the foreign-remittance law.
• Freelancing and other IT-enabled services income, until 30 June 2027, if every taka arrives by bank transfer.

Exempt income still has to be shown in your return, and having it can by itself make filing compulsory. Freelancer guide →

Under the limit — do you still file?

Often, yes. Filing is mandatory in a long list of situations whatever your income: for example if you had taxable income or were assessed in any of the previous three years, are a public servant, keep a term deposit over ৳10 lakh or buy more than ৳10 lakh of Sanchaypatra, take a loan of more than ৳20 lakh, register or renew the fitness of a car, renew a trade licence in a city corporation or municipality, or have tax-exempt income. Earning under the limit only means your tax is zero — not that the return is optional. Who must file →