Despite continued high inflation, the government has decided to keep the annual tax-free income threshold for individual taxpayers unchanged at Tk 350,000 in the national budget for the fiscal year 2025–26.
Finance Adviser Salehuddin Ahmed, while presenting the budget, announced that there would be no change to the existing tax-free ceiling. However, a new top-tier tax rate of 30 per cent has been proposed for individuals with annual incomes exceeding Tk 3.85 million.
Revised Income Tax Structure
Under the proposed structure:
- The first Tk 350,000 of income will remain tax-free.
- The next Tk 100,000 will be taxed at 5%.
- The subsequent Tk 400,000 at 10%.
- The next Tk 500,000 at 15%.
- Another Tk 500,000 at 20%.
- The following Tk 2 million at 25%.
- Income above Tk 3.85 million will be taxed at 30%.
Future Adjustments
Looking ahead, the government plans to gradually increase the tax-free threshold in the coming years. In FY 2026-27 and FY 2027-28, the limit will rise by Tk 25,000 each year, bringing it to Tk 375,000.
Special Categories
Different thresholds apply to certain groups:
- Women and senior citizens (65+): Tk 400,000
- Third-gender individuals and persons with disabilities: Tk 475,000
- Gazetted freedom fighters: Tk 500,000
- Parents/legal guardians of persons with disabilities: Additional Tk 50,000 per dependent
From FY 2026–27, individuals injured in the July uprising—if officially recognised—will be entitled to a tax-free income threshold of Tk 525,000.
Minimum Tax for New Taxpayers
A minimum tax of Tk 1,000 has been proposed for new taxpayers once their income exceeds the tax-free threshold. Currently, the minimum tax varies by location:
- Dhaka North, Dhaka South, and Chattogram City Corporations: Tk 5,000
- Other city corporations: Tk 4,000
- Areas outside city corporations: Tk 3,000
According to the National Board of Revenue (NBR), Bangladesh has approximately 11.1 million registered taxpayers with Taxpayer Identification Numbers (TINs), though only about 4 million submitted tax returns in the current fiscal year.
