Investment tax rebate in Bangladesh, explained (2025-26)

The investment rebate is the main legal way salaried taxpayers in Bangladesh reduce their income tax. Here is exactly how it works for income year 2025-26.

The rebate formula

Your rebate is the lowest of three figures: 3% of your taxable income, 15% of your total rebate-eligible investment, or ৳10,00,000. Because it is the lowest of the three, investing beyond a certain point stops adding rebate — so the goal is to invest just enough to hit the 3%-of-taxable-income cap.

Which investments qualify (and their caps)

• Sanchaypatra & government securities/bonds — combined ৳5,00,000 cap
• DPS (Deposit Pension Scheme) — up to ৳60,000 per year
• Life insurance premium — up to 10% of the policy's sum assured
• Mutual funds, ETFs & unit certificates — combined ৳5,00,000 cap
• Listed DSE shares and your own provident-fund contribution
• Donations to approved welfare organisations

How much should you invest?

Aim for the point where 15% of your investment equals 3% of your taxable income — that is your 'magic number'. Investing more than that earns no extra rebate. The calculator shows your exact magic number and the resulting tax saving instantly.

Two things to watch

First, if your taxable income crosses the tax-free limit, the ৳5,000 minimum tax (৳1,000 for first-time filers) still applies even after rebate. Second, claim every eligible investment in your first return — under current rules a revised return cannot add rebate you forgot to claim. See the full tax calculation guide →