Rebate BhaiIncome tax on ৳1,20,000/month salary in Bangladesh (2025-26)
On a monthly salary of ৳1,20,000 (৳14,40,000 a year), the estimated income tax for income year 2025-26 is about ৳69,000 with no rebate-eligible investment. With the investment rebate you can bring it down to roughly ৳40,200.
Of your income, ৳5,60,000 falls above the ৳4,00,000 tax-free limit. Your top marginal rate is 15% and your effective tax rate (before any rebate) is about 4.8% of gross salary.
Income breakdown
| Annual gross salary | ৳14,40,000 |
| Standard exemption (⅓ or ৳5,00,000, lower) | − ৳4,80,000 |
| Taxable income | ৳9,60,000 |
| General tax-free threshold | ৳4,00,000 |
Slab-by-slab tax
| Income range | Rate | Tax |
|---|---|---|
| ৳0 – ৳4,00,000 | 0% | ৳0 |
| ৳4,00,000 – ৳7,00,000 | 10% | ৳30,000 |
| ৳7,00,000 – ৳9,60,000 | 15% | ৳39,000 |
| Tax before rebate | ৳69,000 |
Tax on ৳1,20,000/month by taxpayer category
| Category | Tax, no investment | With full rebate |
|---|---|---|
| GeneralTax-free up to ৳4,00,000 | ৳69,000 | ৳40,200 |
| Female / 65+Tax-free up to ৳4,50,000 | ৳61,500 | ৳32,700 |
| Third GenderTax-free up to ৳5,25,000 | ৳50,250 | ৳21,450 |
| DisabledTax-free up to ৳5,25,000 | ৳50,250 | ৳21,450 |
| Freedom / July FighterTax-free up to ৳5,50,000 | ৳46,500 | ৳17,700 |
The salary and the one-third exemption are the same for everyone; only the tax-free limit changes. A parent or guardian of a child with a disability adds ৳50,000 to their limit for each such child. Where the full rebate would push tax under ৳5,000, the minimum tax holds it at ৳5,000. Tax-free limits explained →
Lower it with the investment rebate
Invest about ৳2,88,000 in rebate-eligible options (DPS, Sanchaypatra, mutual funds, life insurance, etc.) to claim up to ৳28,800 in rebate and cut your tax to roughly ৳40,200 — saving around ৳28,800 a year.
Ways to invest for the full ৳28,800 rebate
At this salary, the rebate that actually lowers your tax tops out at ৳28,800, which takes ৳2,88,000 of eligible investment in the income year. The plans below mix instruments differently, within the legal limits (Sanchaypatra and government securities ৳5,00,000; DPS ৳1,20,000 a year).
Safe & Steady
Capital-protected, government-backed
- Sanchaypatra / Govt. bonds৳2,88,000
Rebate you'll capture: ৳28,800
Balanced
A mix of safety and growth
- Sanchaypatra / Govt. bonds৳96,000
- Mutual funds৳96,000
- DPS৳96,000৳8,000/mo
Rebate you'll capture: ৳28,800
Growth
Market-linked, higher potential
- Mutual funds৳1,44,000
- Listed shares (new investment)৳1,44,000
Rebate you'll capture: ৳28,800
Estimates for rebate optimization by instrument category — not investment advice. Instrument returns are not guaranteed. Consult a certified practitioner before filing. Encashing Sanchaypatra, unit certificates or mutual funds before maturity makes the rebate claimed on them repayable as additional tax. How the rebate works →