Guide · the rules in plain words
Income tax slabs for 2026-27
For the 2026-27 tax year (income from 1 July 2025 to 30 June 2026), the first 4,00,000 taka of taxable income is tax free for a general taxpayer. The next 3 lakh is taxed at 10%, the next 4 lakh at 15%, the next 5 lakh at 20%, the next 20 lakh at 25% and the rest at 30%.
Based on the Finance Act 2026, checked 13 November 2026 · An estimate, not legal or tax advice.
What is the tax-free limit?
| Taxpayer | Tax-free limit |
|---|---|
| General | 4,00,000 |
| Woman, or age 65 and over | 4,50,000 |
| Person with disability, third gender | 5,25,000 |
| Gazetted war-wounded freedom fighter, July fighter | 5,50,000 |
A parent or legal guardian of a person with a disability adds 50,000 to their limit.
What are the slabs above the limit?
| Slice of taxable income | Rate |
|---|---|
| Next 3,00,000 | 10% |
| Next 4,00,000 | 15% |
| Next 5,00,000 | 20% |
| Next 20,00,000 | 25% |
| The rest | 30% |
How is salary treated?
Salary gets an exemption of one third of salary income or 5,00,000, whichever is lower. Taxable income is salary minus that exemption.
Is there a minimum tax?
Yes. If your income is above the tax-free limit, you pay at least 5,000 taka, or 1,000 if this is your first return.
How do I work out my own tax?
Follow the same five steps the calculator uses:
- Add up your salary for July 2025 to June 2026, including bonuses.
- Take off the exemption: one third of salary, or 5,00,000, whichever is lower.
- Apply the slabs to what is left, starting after your tax-free limit.
- Take off the investment rebate (see the rebate guide).
- Check the minimum tax and subtract tax already deducted by your employer.
A worked example step by step
Nadia’s yearly salary is 15,00,000 taka. She invested 2,00,000 in eligible schemes.
- Exemption: one third is 5,00,000, which is also the cap, so 5,00,000.
- Taxable income: 15,00,000 − 5,00,000 = 10,00,000.
- First 4,00,000: tax free.
- Next 3,00,000 at 10%: 30,000.
- Remaining 3,00,000 at 15%: 45,000.
- Tax on slabs: 75,000.
- Rebate: the lowest of 3% of 10,00,000 (30,000), 10% of 2,00,000 (20,000) and 7,50,000 = 20,000.
- Tax for the year: 75,000 − 20,000 = 55,000 taka.
Had she invested 3,00,000, the rebate would be 30,000 and her tax 45,000.
Worked examples
Five salaries, run through the same rules the calculator uses:
| Yearly salary | Taxpayer | Investment | Tax for the year |
|---|---|---|---|
| 6,00,000 | General | None | 0 |
| 9,00,000 | General | None | 20,000 |
| 15,00,000 | General | 2,00,000 | 55,000 |
| 30,00,000 | General | 7,50,000 | 3,40,000 |
| 7,20,000 | Woman | None | 5,000 (minimum tax) |
Does my employer deduct tax every month?
Yes. Under section 86 your employer deducts tax from each month’s salary at your average rate and pays it to the government. Your salary certificate shows the total for the year. If your real tax is lower, you can adjust or claim the extra in your return; if it is higher, you pay the balance before you file.
Common mistakes
- Using old slabs. Many sites still show a 3.5 lakh limit and a 15% rebate. Both are out of date for 2026-27.
- Forgetting the exemption. Salary gets one third off, up to 5 lakh, before the slabs.
- Ignoring tax already deducted. Your salary certificate shows how much your employer paid for you. Subtract it to see the balance or refund.
What does this estimate leave out?
Income from business, rent, interest and capital gains; the wealth surcharge; perquisite rules; and non-residents. If you have these, use the calculator as a starting point only.
Common questions
Is the tax-free limit 3.75 lakh or 4 lakh?
The budget speech proposed 3,75,000, but the Finance Act 2026 as passed set 4,00,000 for a general taxpayer. Pawna marks these figures as secondary until NBR's circular is checked.
What is the minimum tax?
If your income is above the tax-free limit you pay at least 5,000 taka, or 1,000 taka if it is your first return, even when the rebate would take your tax lower.
Which months count for 2026-27?
Income earned from 1 July 2025 to 30 June 2026. You file the return for it between July 2026 and the deadline of 31 December 2026.
Try it with your own figures
The calculator runs on your phone. Your figures are not sent anywhere.