Bangladesh Income Tax Rates 2026-27 and Historical 2017-18 Tax Slabs

Bangladesh income tax: applicable law and assessment years

Bangladesh income tax is administered by the National Board of Revenue (NBR). The Income Tax Act, 2023, as amended by subsequent legislation, is the principal modern income tax statute. The historic 2017-18 rules were governed by the Income-tax Ordinance, 1984 and the Finance Act, 2017. Tax rates are prescribed for the relevant assessment year, so figures for 2017-18 must not be used for present filings.

For the latest changes, consult the Finance Acts (including Finance Act, 2026) and the NBR income tax circulars.

Individual income tax rates: assessment years 2026-27 and 2027-28

The following progressive bands apply to general individual taxpayers under the rates announced for these assessment years. Tax is calculated on successive portions of taxable income, not at one flat rate on the whole amount.

Special tax-free thresholds for 2026-27 and 2027-28 include BDT 425,000 for women and taxpayers aged 65 or older; BDT 500,000 for third-gender taxpayers and persons with disabilities; and BDT 525,000 for eligible gazetted war-wounded freedom fighters and gazetted July fighters. Other reliefs and minimum tax rules may apply. The announced minimum tax is BDT 5,000 where income exceeds the tax-free threshold, subject to applicable law and exceptions.

Source: NBR budget speech and individual tax schedule.

Historical Bangladesh personal income tax slabs for 2017-18

The following figures are retained for archival comparison only and are not current tax rates.

Historical special tax-free thresholds

Non-resident individuals were generally subject to a 30% rate under the historical framework, subject to exemptions, special categories and treaty relief. Residency and source of income affect liability.

Corporate income tax in Bangladesh

Company taxation depends on the assessment year, whether the company is publicly traded, the nature of its business and compliance conditions. Under the 2017-18 historical schedule, common rates included 25% for publicly traded companies and 35% for non-publicly traded companies. Special categories included publicly traded banks, insurers and financial institutions at 40%, non-publicly traded counterparts at 42.5%, merchant banks at 37.5%, publicly traded mobile operators at 40%, non-publicly traded mobile operators at 45%, tobacco manufacturers at 45%, and cooperative societies at 15%, subject to the precise statutory classification and conditions.

These are historical figures. Current rates can differ substantially. For example, NBR's published 2024-25 and 2025-26 guidance distinguishes qualifying listed companies, unlisted companies, one-person companies, banks, financial institutions and tobacco businesses, and allows conditional lower rates in certain cases. For 2026-27, verify the specific category against the Finance Act, 2026 and 2026-27 circular before calculating corporate tax.

Wealth-related surcharge and tobacco surcharge

Bangladesh's historical article referred to a "wealth tax" schedule. In practice, the relevant charge was generally a surcharge linked to an individual taxpayer's net wealth and income tax liability, rather than a standalone progressive income tax on each wealth band. The historical wealth thresholds and surcharge rates should therefore not be read as ordinary income tax slabs.

The archived article also recorded a 5% surcharge connected with income from manufacturing tobacco products, subject to the relevant rules. Current surcharge thresholds, rates and minimums must be checked in the Finance Act applicable to the assessment year.

Tax returns, deadlines and compliance

The Income Tax Act, 2023 governs return obligations and related compliance. Return filing requirements can apply where taxable income exceeds the prescribed threshold and in other specified situations. Filing dates vary by taxpayer type and may be changed through official notifications. The old article's statement about a blanket company deadline extension from 15 July to 15 September should not be treated as a current deadline.

Check the NBR income tax FAQs, official e-tax portal, and published circulars for the applicable assessment year. Source deductions and withholding are also governed by the Act and the withholding tax rules.

Legal references and key definitions

Assessment year

The year for which income tax is assessed under the applicable legislation, distinct from the period in which income was earned.

Taxable income

Income brought to charge after applying the applicable rules for classification, exemptions, allowances and deductions.

Marginal tax rate

The rate applied to the next portion of taxable income within a progressive schedule.

Surcharge

An additional charge imposed under the applicable finance legislation, distinct from the basic slab rate.

Primary sources: Income Tax Act, 2023 (official English text); Finance Act, 2017 and later Finance Acts; NBR circulars.