Income Tax Calculator BD – Calculate Tax on Your Monthly Salary

The Income Tax Calculator BD is an easy-to-use tool that helps Bangladeshi taxpayers estimate their annual tax liability based on their income, allowances, and eligible investments. Designed for individuals of all taxpayer categories—general, senior citizens, women, freedom fighters, and third gender—this calculator makes tax planning faster, simpler, and more transparent.

Whether you’re a salaried employee, business professional, or freelancer, using the Income Tax Calculator BD ensures you know what to expect when filing taxes.

How the Income Tax Calculator BD Works

The calculator is built on the income tax slab rates and rules published by the National Board of Revenue (NBR), Bangladesh for the fiscal year 2024–25 (AY 2025–26). It includes income exemptions, investment rebates, and minimum tax calculations based on city type and taxpayer category.

Input Fields Explained

1. Taxpayer Category
   Choose from General, Female/Senior (65+), Disabled/Third Gender, or War-wounded Freedom Fighter. This affects the initial tax-free threshold.
2. Location
   Select whether you’re from Dhaka/Ctg City Corporation, Other City Corporation, or Outside City. The minimum tax varies based on location.
3. Annual Income Fields
   • Basic Salary
     Your yearly basic income from employment.
   • House Rent Allowance (HRA)
     Tax-free up to 50% of basic or BDT 300,000 (whichever is lower).
   • Medical Allowance
     Exempt up to BDT 120,000 or actual expenses (with proof).
   • Conveyance Allowance
     Exempt up to BDT 30,000 per year.
   • Festival Bonus
     Fully taxable.
   • Other Income
     Include income from business, interest, freelance work, etc.
4. Annual Investment for Rebate
   Add total eligible investment (DPS, life insurance, government bonds, etc.). Rebate is 15% of this amount, capped at 20% of taxable income or BDT 150,000.

Core Formula Used

Taxable Income = Gross Income – Exemptions – Rebate

Tax = Based on Tax Slabs after considering category and exemptions

Total Tax = Calculated Tax or Minimum Tax (whichever is higher)

Example Calculation (Verification Section)

Let’s consider a salaried General Taxpayer from Dhaka:

• Basic Salary: BDT 600,000
• House Rent Allowance: BDT 300,000
• Medical Allowance: BDT 60,000
• Conveyance: BDT 30,000
• Festival Bonus: BDT 100,000
• Other Income: BDT 50,000
• Investment: BDT 250,000

Breakdown

1. Gross Income = 600,000 + 300,000 + 60,000 + 30,000 + 100,000 + 50,000 = BDT 1,140,000
2. Exemptions:
   • House Rent Allowance: BDT 300,000 exempt (50% of basic)
   • Medical Allowance: BDT 60,000 exempt (within limit)
   • Conveyance: BDT 30,000 exempt
3. Net Taxable Income = 1,140,000 – 390,000 = BDT 750,000
4. Investment Rebate = 15% of BDT 250,000 = BDT 37,500
5. Tax Calculation (for General category):
   • First BDT 350,000 – No tax
   • Next BDT 100,000 @ 5% = BDT 5,000
   • Remaining BDT 300,000 @ 10% = BDT 30,000
   • Total Tax Before Rebate = BDT 35,000
   • After Rebate = BDT 35,000 – BDT 37,500 = 0 (Rebate exceeds tax)
6. Minimum Tax (Dhaka) = BDT 5,000
7. Final Tax Payable = BDT 5,000

This result shows how rebates and exemptions affect your final tax bill.

Benefits of Using This Calculator

• Quickly estimate tax with minimal effort
• Complies with latest NBR rules for FY 2024–25
• Considers exemptions and rebates automatically
• Provides clarity for salaried and self-employed taxpayers
• No registration or login required

Tips and Common Mistakes

Tips

• Use actual figures from your salary slips and income statements.
• Maximize your investments to reduce taxable income.
• Always select the correct taxpayer category for accurate thresholds.

Common Mistakes

• Ignoring the minimum tax requirement
• Overestimating allowable exemptions (e.g., house rent)
• Not including other income sources like freelance or business

Common Questions / FAQs

1. Is this calculator valid for FY 2024–25?
Yes, this calculator uses updated tax rules for the 2024–2025 fiscal year (AY 2025–26).

2. Who should use this tool?
Salaried employees, business owners, freelancers, and any Bangladeshi taxpayer can use this calculator.

3. How is minimum tax applied?
Even if your rebate brings your payable tax to zero, a minimum tax applies based on your location.

4. Are investment rebates guaranteed?
Yes, if they fall within the NBR-approved categories and limits (20% of income or BDT 150,000).

5. Does this calculator file my return?
No. This is only for estimation. You must file your return through NBR’s official system or with a tax consultant.

Conclusion

The Income Tax Calculator BD is a powerful tool for estimating your taxes with ease and accuracy. By breaking down income, exemptions, rebates, and tax slabs, it empowers you to make informed financial decisions before filing your return.