Introduction
Are you wondering about the latest income tax rates in Bangladesh for 2025? The Bangladesh government has announced some important changes in tax slabs, exemption limits, and minimum tax rates. Whether you’re a salaried person, freelancer, business owner, or just want to plan your finances smartly, understanding the new income tax system is essential.
In this post, we’ll break down all the changes in the Bangladesh Income Tax Rates for 2025, so you can stay updated and compliant. Let’s dive in!
What’s New in Bangladesh Income Tax for 2025?
Starting from July 2025 (Fiscal Year 2025–26), Bangladesh is introducing a new, simplified income tax structure. The government is:
Increasing the tax-free income limit
Reducing the number of tax slabs
Adjusting tax rates for each slab
Raising exemption limits for women, seniors, people with disabilities, and freedom fighters
Why these changes?
The aim is to make tax compliance easier, provide relief to lower- and middle-income groups, and ensure a more balanced tax burden for everyone.
2025 Income Tax Slabs and Rates
Here are the latest tax rates for individual taxpayers in Bangladesh, effective from July 1, 2025:
| Annual Taxable Income (BDT) | Tax Rate (%) |
|---|---|
| Up to 375,000 | 0% |
| Next 300,000 | 10% |
| Next 400,000 | 15% |
| Next 500,000 | 20% |
| Next 2,000,000 | 25% |
| Above 3,575,000 | 30% |
Example Calculation
If your annual income is BDT 1,075,000:
First 375,000: 0% tax
Next 300,000: 10% = 30,000
Next 400,000: 15% = 60,000
Remaining 0 (since 1,075,000 falls in this bracket)
Total Tax = 90,000 BDT
Special Exemption Limits for Women, Seniors, and Others
Not everyone has the same tax-free limit. Check your eligibility:
| Category | Exemption Limit (BDT) |
|---|---|
| General taxpayers | 375,000 |
| Women & Senior Citizens (65+) | 425,000 |
| People with Disabilities | 500,000 |
| Third-Gender Individuals | 500,000 |
| War-wounded Freedom Fighters | 525,000 |
| Parent of a Disabled Child | Extra 50,000 per child |
This means, for example, a woman aged 65 gets the first 425,000 BDT of income tax-free.
Minimum Tax and Other Key Points
Minimum tax: Everyone who earns more than their exemption limit must pay at least BDT 5,000, even if their calculated tax is less.
New taxpayers (first-timers) will pay a minimum of BDT 1,000.
Income from certain sources (like cash incentives for exporters) might get special consideration.
Filing returns online is highly encouraged, and penalties apply for late or false declarations.
Comparison: Old vs. New Income Tax Slabs
| FY 2024–25 (Old) | FY 2025–26 (New) |
|---|---|
| Exemption: 350,000 | Exemption: 375,000 |
| Slabs: 7 | Slabs: 6 |
| Rate: 5–30% | Rate: 10–30% |
| Min. tax: 2,000–5,000 | Min. tax: 5,000 |
| More complex | Simpler, easier to follow |
FAQs on Bangladesh Income Tax 2025
Q: When do the new tax rates apply?
A: From July 1, 2025 (FY 2025–26), for Assessment Year 2026–27.
Q: Do women and senior citizens always get a higher exemption?
A: Yes! Women and citizens aged 65+ enjoy a bigger tax-free income limit.
Q: What happens if I don’t file my return on time?
A: Penalties and even legal action may apply, so always file on time!
Q: Can I file my tax return online?
A: Absolutely! The NBR encourages online filing for faster, easier processing.
Q: Where can I get more help?
A: Visit the NBR Bangladesh website or consult a tax professional.
Conclusion
Bangladesh’s latest income tax rates for 2025 are designed to make life easier for taxpayers. With higher exemption limits, fewer slabs, and a simpler structure, tax filing should be less stressful for everyone.
Remember: Staying updated and compliant with tax laws not only saves you money but also avoids unnecessary hassles.
