If you earn a salary in Bangladesh, you’re probably wondering how much of your income goes to taxes each year. The good news is that calculating salary tax isn’t as complicated as it looks. Once you understand the tax slabs, exemptions, and rebates, you can estimate your liability with confidence.
This guide explains the salary tax calculation process in Bangladesh, shares updated tax slabs, and provides real-life examples so you can follow along step by step.
What Is Salary Tax in Bangladesh?
Salary tax is the portion of your income paid to the government as part of personal income tax. The rules are set by the National Board of Revenue (NBR), and they apply to all salaried individuals whose annual income is above the tax-free threshold.
Key points to know:
- The tax year runs from July 1 to June 30.
- Employers usually deduct tax every month (TDS), but you’re responsible for ensuring the amount is correct.
- Exemptions and higher thresholds exist for women, senior citizens, and people with disabilities.
👉 For quick slab-based estimates, you can also try the NBR BD Tax Calculator.
Income Tax Slabs for FY 2024-25
Here are the current NBR slabs for individuals:
| Annual Income (BDT) | Tax Rate |
|---|---|
| Up to 3,50,000 | 0% |
| 3,50,001 – 4,50,000 | 5% |
| 4,50,001 – 7,50,000 | 10% |
| 7,50,001 – 11,50,000 | 15% |
| 11,50,001 – 16,50,000 | 20% |
| 16,50,001 – 30,00,000 | 25% |
| Above 30,00,000 | 30% |
Note: Women and senior citizens may enjoy higher starting thresholds. Many users in Bangladesh rely on Loan Calculator BD to compare loan interest rates effectively.
Step-by-Step Salary Tax Calculation
Here’s the process to calculate your salary tax in Bangladesh:
- Find your gross annual salary (basic pay, bonuses, and allowances).
- Subtract allowable exemptions such as house rent, medical, and conveyance (within NBR limits).
- Get your taxable income = gross salary – exemptions.
- Apply the slab rates according to the table above.
- Calculate rebate eligibility (based on approved investments).
- Adjust for employer deductions (TDS) to see the final payable amount.
Example 1: Mid-Level Professional
Rahim’s salary details:
- Gross salary: ৳8,00,000
- Allowance exemptions: ৳1,00,000
- Taxable income = ৳7,00,000
Tax breakdown:
- First ৳3,50,000 → 0% = ৳0
- Next ৳1,00,000 → 5% = ৳5,000
- Remaining ৳2,50,000 → 10% = ৳25,000
Rahim’s total salary tax = ৳30,000
Example 2: Higher-Income Professional
Amina’s salary details:
- Gross salary: ৳12,00,000
- Allowance exemptions: ৳2,00,000
- Taxable income = ৳10,00,000
Tax breakdown:
- First ৳3,50,000 → 0% = ৳0
- Next ৳1,00,000 → 5% = ৳5,000
- Next ৳3,00,000 → 10% = ৳30,000
- Next ৳2,50,000 → 15% = ৳37,500
Amina’s total salary tax = ৳72,500
Why Use a Salary Tax Calculator?
Manual calculation is possible, but it’s time-consuming and error-prone. An online tool helps you:
- Get instant results.
- Avoid mistakes with slab applications.
- Compare “what if” scenarios when salary or bonuses change.
👉 For quick and accurate results, try the Salary Tax Calculator BD or explore the Income Tax Calculator BD for a complete breakdown.
Tips to Reduce Salary Tax
- Invest wisely: Government bonds and savings certificates qualify for rebates.
- Plan retirement contributions: Use the Provident Fund Calculator to see how PF savings reduce taxable income.
- Keep records: Always maintain evidence of exemptions and investments.
- Cross-check TDS: Ensure your employer’s monthly deduction matches your actual liability.
FAQs on Salary Tax in Bangladesh
Q1. What is the tax-free limit for salaried individuals?
৳3,50,000 for FY 2024-25, with higher thresholds for women and seniors.
Q2. Which allowances are exempt from tax?
House rent, medical, and conveyance allowances, within defined NBR limits.
Q3. How do rebates reduce tax?
Rebates apply if you invest in approved savings or retirement schemes.
Q4. Can I get a refund if I paid extra tax?
Yes, you can apply for a refund from NBR if excess TDS was deducted.
Q5. Do I still need to file returns if my employer deducts tax?
Yes, filing is required to confirm accuracy and claim rebates/refunds.
SADIP is the creator of LoanCalculatorBD.com, a trusted resource for accurate and easy-to-use financial calculators tailored for users in Bangladesh. With a deep understanding of personal finance and local banking needs, SADIP is dedicated to helping individuals make smarter loan decisions. His mission is to simplify complex calculations and empower users with clear, reliable tools for managing their finances with confidence.
