Bangladesh taxation | Historical reference with 2026 update
Bangladesh Income Tax Rates 2018-19: Historical Slabs and 2026 Updates
A practical guide to Bangladesh's 2018-19 personal income tax slabs, corporate tax rates, minimum tax, tax-free thresholds and wealth-based surcharge, with an explanation of the later changes to the law.
Bangladesh individual income tax slabs for 2018-19
For ordinary resident individuals, the historical marginal income tax bands were as follows. Each percentage applies only to income within that band, not to all taxable income.
| Annual taxable income (BDT) | Marginal rate |
|---|---|
| First 250,000 | 0% |
| Next 400,000 (250,001 to 650,000) | 10% |
| Next 500,000 (650,001 to 1,150,000) | 15% |
| Next 600,000 (1,150,001 to 1,750,000) | 20% |
| Next 3,000,000 (1,750,001 to 4,750,000) | 25% |
| Above 4,750,000 | 30% |
Historical table for tax year 2018-19; amounts are in Bangladeshi taka (BDT/Tk).
Minimum income tax in 2018-19
Where the historical minimum-tax requirement applied, the location-based amounts were:
| Taxpayer location | Minimum tax (BDT) |
|---|---|
| Dhaka North, Dhaka South and Chattogram city corporations | 5,000 |
| Other city corporation areas | 4,000 |
| Other areas | 3,000 |
These figures are historical. The current minimum tax depends on the applicable assessment-year legislation and any exceptions.
Non-resident individual income tax in 2018-19
The general historical rate for a non-resident individual other than a non-resident Bangladeshi was 30%. Residency classification, applicable exemptions, source-of-income rules and any double-taxation agreement can affect the actual liability. A non-resident Bangladeshi may be subject to different treatment under the applicable provisions.
Bangladesh corporate income tax rates for 2018-19
Company income tax depended on the legal classification and business activity. The following is a historical summary, not a current corporate-rate schedule.
| Company category | Historical rate |
|---|---|
| Publicly traded companies (general category) | 25% |
| Non-publicly traded companies (general category) | 35% |
| Publicly traded banks, insurers and financial institutions (relevant category) | 40% |
| Non-publicly traded banks, insurers and financial institutions (relevant category) | 42.5% |
| Merchant banks | 37.5% |
| Publicly traded mobile-phone operators | 40% |
| Non-publicly traded mobile-phone operators | 45% |
| Manufacturers of cigarettes, bidi, zarda, gul and similar tobacco products | 45% |
| Co-operative societies (specified income) | 15% |
Special conditions and classifications can modify these headline rates. Historically, an additional surcharge of 5% applied to income from specified tobacco manufacturing businesses under the relevant finance legislation. Current company rates and conditions should be checked against the NBR Finance Acts.
Tax-free income thresholds for 2018-19
Higher historical tax-free thresholds applied to certain taxpayer categories:
| Individual category | Tax-free threshold (BDT) |
|---|---|
| General taxpayer | 250,000 |
| Women and taxpayers aged 65 or above | 300,000 |
| Taxpayers with disabilities | 400,000 |
| Gazetted war-wounded freedom fighters | 425,000 |
Tax-free thresholds are not the same as a deduction for all taxpayers; they depend on eligibility and the applicable year.
Wealth tax versus wealth-based surcharge
Bangladesh's historical system imposed a wealth-based surcharge on income tax in specified circumstances. It should not be presented as a standalone progressive wealth tax on the full value of assets. The earlier page's 0%-30% wealth-slab table was therefore misleading and is not repeated as a wealth tax schedule.
For the 2018-19 period, net wealth exceeding the prescribed threshold (historically BDT 22.5 million) could trigger surcharge, subject to the relevant asset tests, surcharge bands and minimum charge. A historical minimum surcharge of BDT 3,000 was specified in the earlier material. The precise amount must be determined using the Finance Act for that year, rather than applying income-tax marginal rates directly to net wealth.
Updated Bangladesh individual income tax rates for assessment year 2026-27
Under the published 2026-27 budget framework, the general individual tax-free threshold is BDT 375,000, followed by progressive bands:
| Portion of total taxable income | Rate |
|---|---|
| First BDT 375,000 | 0% |
| Next BDT 300,000 | 10% |
| Next BDT 400,000 | 15% |
| Next BDT 500,000 | 20% |
| Next BDT 2,000,000 | 25% |
| Remaining income above BDT 3,575,000 | 30% |
For assessment years 2026-27 and 2027-28, the published tax-free thresholds include BDT 425,000 for women and persons aged 65 or above; BDT 500,000 for third-gender taxpayers and persons with disabilities; and BDT 525,000 for specified gazetted war-wounded freedom fighters and July fighters. An additional BDT 50,000 allowance may apply per eligible disabled child or dependent, subject to conditions. The general minimum tax is BDT 5,000 when taxable income exceeds the applicable tax-free threshold, subject to statutory exceptions.
These updated figures are based on the official 2026-27 budget speech. Verify any later amendment, special rule or applicable exception before filing.
Applicable income tax laws and official sources
Historical law: Income-tax Ordinance, 1984
The Income-tax Ordinance, 1984 was the principal framework for the 2018-19 year. The Finance Act, 2018 set or amended rates and relevant provisions. Consult the NBR archive of Finance Acts for the 2018 legislation.
Current law: Income Tax Act, 2023
The Income Tax Act, 2023 replaced the earlier Ordinance and provides the present statutory framework for chargeability, assessment, returns, withholding and administration, as subsequently amended. The Finance Act, 2026 and NBR income tax circulars provide further year-specific provisions and guidance.
Tax returns and filing deadlines
Individual and company return deadlines are not necessarily identical. The old statement that company returns were generally due on 15 September is not a reliable current rule. Filing deadlines depend on the relevant taxpayer classification, tax day, extensions and current NBR notifications. Check the National Board of Revenue for the latest instructions.
Frequently asked questions
Is the 2018-19 income tax table valid for 2026?
No. The 2018-19 figures are historical. For current filing, consult the applicable assessment-year schedule and NBR guidance.
Is wealth surcharge the same as a separate wealth tax?
No. The historical wealth-based surcharge was an additional charge linked to income tax, not a general standalone tax on every asset.
What law governs Bangladesh income tax now?
The Income Tax Act, 2023, as subsequently amended, governs current income tax; the Income-tax Ordinance, 1984 governed 2018-19.
Last reviewed: 23 October 2026. This page is general information, not a substitute for tax advice on an individual case.