Calculate your income tax effortlessly with our income tax calculator. Just input your income details, and you’ll get immediate results, learn about tax deductions, and make informed financial choices. Try it now for free!
Bangladesh Income Tax Calculator
We created the income tax calculator tool in Bangladesh for individuals, businesses, and other entities. Before using a tax calculator, you need to know tax rules, exemptions, and slabs, which is crucial to ensure compliance and financial planning. In this guide, we explore how an income tax calculator simplifies the process, breaks down the income tax slab in Bangladesh, and ensures compliance with local tax laws.
Why do you need to use the income tax calculator?
Our income tax calculator is a digital tool designed to compute taxable income, deductions, and final tax liabilities based on the latest National Board of Revenue (NBR) guidelines. Here’s why it’s essential:
Accuracy and Time Efficiency
Manual tax calculations are prone to errors, especially when accounting for multiple income sources, exemptions, and rebates. Our tax calculator tool automates the process, ensuring precise results in seconds with PDF and JPEG file downloadable options.
Compliance with Updated Tax Laws
The NBR frequently revises tax slabs and policies. A reliable income tax calculator integrates these updates, helping users stay compliant.
Financial Planning
By forecasting tax liabilities, individuals can plan investments, deductions, and savings to minimize their tax burden legally.
How to Use an Income Tax Calculator for Bangladesh
We designed our income tax calculator tool to be easy for Bangladeshi people. You have to follow these steps:
Step 1 – Income Type
At first, you find an option for your income type. There are two options: monthly or annual. If you want to calculate your Tax on a monthly basis, you need to select the monthly option. Otherwise, if you want to calculate your Tax annually, select the annual income option.
Step 2 – Gross Income
After selecting your income type, you see the option Gross Income (Monthly or Annually). It depends on your income type selection. Then, you need to put your monthly salary or annual total income.
Step 3 – Actual Investment
If you have an investment, you need to put your invested amount like DPS FDR, etc.
Step 4 – Tax Payer Category
The Payer Category is the most important thing in our income tax calculator tool because taxes depend on Gender. If you are a male, you need to pay more; if you are a woman, you need to pay less than a male. Also, you have two options: disabled / Third Gender and senior citizens.
Step 5 – calculate Tax
If you fill out all the options, click the Calculate Tax option. After clicking the calculate Tax option, you can see your Payable tax amount.
Step 6 – Tax Calculation Result
After clicking Calculate Tax, you will see the total breakdown of your payable taxes. If your monthly or annual income is less than payable Tax, you see the message “Good news! You don’t have to pay any taxes this year😊”.
Step 7 – Download Results
Our Imcone tax calculator can download your tax results as a PDF or JPEG file as your email address. After seeing the results, you can click download PDF or JPEG file. It will be downloaded easily on your device.
How to Use the BD Income Tax Calculator
➤ Visit a Reliable Calculator Site: For example, bdincometaxcalculator.com
➤ Input Your Income Details: Enter your total annual income and deductions.
➤ Select the Tax Year: Choose the relevant fiscal year.
➤ Click Calculate: Get your estimated tax liability instantly.
Benefits of Using a Bangladesh Income Tax Calculator
Our income tax calculator offers several advantages:
➤ Accuracy – Remove calculation errors
➤ Time-saving – Instant tax results save you time from manual tax calculation.
➤ Updated Tax Slabs—Our tool is always updated to provide actual results, as per Bangladeshi tax rules and regulations.
➤ Financial Planning – If you find tax results very fast, it helps in tax-saving investment decisions
➤ User-Friendly – Simple and easy to use for individuals and businesses
Taxable Income Categories: Know What You Need to Pay For
Understanding different income categories is essential for any income tax calculation, as each may have specific tax implications.
Income Categories and Their Tax Treatment:
➤ Salary Income: Wages, bonuses, allowances, and benefits from employment
➤ Business Income: Profits from sole proprietorships or partnerships
➤ Investment Income: Interest, dividends, and capital gains
➤ Rental Income: Earnings from property rentals
➤ Agricultural Income: Revenue from farming activities
➤ Capital Gains: Profits from asset sales
➤ Other Income: Any other taxable income not falling into the above categories
Income tax slab in bangladesh
Current income tax slabs for individuals. As per the latest tax rules, the income tax slabs for individuals are as follows:
● Up to BDT 0-350,000 (Female/Senior Citizen above 65 years age: 4,00,000)
● BDT 350,001-450,000 [1,00,000] – 5% Tax
● BDT 450,001-850,000 [4,00,000] – 10% Tax
● BDT 850,001-13,50,000 [5,00,000] – 15% Tax
● BDT 13,50,001-18,50,000 [6,00,000] – 20% Tax
● BDT 18,50,001-38,50,000 [2,000,000] – 25% Tax
● BDT 38,50,001- UP [Remaining] – 30% Tax
● Senior citizens (65+ years) enjoy a higher tax-free threshold of BDT 4,00,000.
● Female taxpayers and disabled persons receive additional exemptions.
Current Income Tax Rates for Individuals
For the 2023-2024 tax year, the general income tax rates in Bangladesh are structured as follows:
| Income Range (BDT) | Tax Rate |
|---|---|
| Up to 350,000 (general taxpayers) | 0% |
| Up to 450,000 (women and senior citizens) | 0% |
| Up to 475,000 (persons with disabilities) | 0% |
| Next 100,000 | 5% |
| Next 300,000 | 10% |
| Next 400,000 | 15% |
| Next 500,000 | 20% |
| Above 1,650,000 | 25% |
It’s worth noting that there is a minimum tax requirement based on the geographical area where the taxpayer resides:
● Dhaka and Chattogram City Corporations: BDT 5,000
● Other City Corporations: BDT 4,000
● Areas outside City Corporations: BDT 3,000
Using a Bangladesh income tax calculator Excel template or online tool can help you quickly determine where you fall within these slabs.
Deductions and Exemptions in the Bangladesh Tax System
Maximizing legitimate deductions is key to optimizing your tax position. Here’s what you can typically deduct when using a Bangladesh tax rate calculator:
Common Tax Exemptions
● Basic Exemption Threshold: The tax-free income amount based on taxpayer category
● Housing Allowance: A portion of rent allowance for salaried individuals
● Medical Allowance: Limited medical benefits
● Conveyance Allowance: Transportation benefits up to a specific limit
● Investment Tax Credits: For investments in specific areas like stocks or savings certificates
● Zakat: Religious contributions for Muslims
● Donation to Approved Charitable Organizations: Donations to specified institutions
Our income tax estimator or income tax calculation Bangladesh tool will incorporate these exemptions automatically.
Special Considerations for Different Taxpayer Categories
Tax rates and calculations vary significantly across different taxpayer groups. An adequately designed income tax calculator in Bangladesh should accommodate these variations.
Tax Rates for Different Entities
➤ Companies: Publicly traded companies typically pay 22.5% tax, while non-publicly traded companies pay 30%
➤Cooperatives: Generally taxed at 15%
➤ Non-Residents: Often subject to different rates, typically higher than residents
➤ Special Economic Zones: May have preferential tax rates
When using our tax calculator on salary or business income, it’s crucial to ensure you’ve selected the correct taxpayer category for accuracy.
5 Features of a Reliable BD Income Tax Calculator
- User-Friendly Interface: Simple input fields for income and deductions.
- Real-Time Updates: Reflects the latest NBR tax slabs and policies.
- Multi-Scenario Analysis: Compare tax liabilities under different investment plans.
- Export Options: Download results for filing returns.
- Mobile Compatibility: Accessible on smartphones and tablets
We offer reliable income tax calculators in Bangladesh. Whether you are an individual taxpayer or a business owner, using an income tax calculator ensures accurate tax estimation and compliance with NBR regulations. With the right tax calculation approach, you can stay informed, plan wisely, and avoid tax penalties.
Conclusion
Understanding how to calculate income tax in Bangladesh is essential for financial planning and compliance. Our income tax calculator in Bangladesh makes it easy to calculate your payable taxes. Just input your monthly or annual income and click the calculate button to see the amount.
Visit our free income tax calculator in Bangladesh for the latest updates on Bangladesh income tax rates 2024 and to access our reliable taxable income calculator. Start using our income tax calculator for Bangladesh today and take control of your financial future!
How to calculate income tax on salary in Bangladesh?
Income tax is calculated based on your annual taxable income and the applicable tax slabs set by the National Board of Revenue (NBR). No worries. We have created an online income tax calculator for Bangladesh. You can use it totally free of cost. Just input your monthly or annual income and get the results.
What is the taxable income for a woman in Bangladesh?
For women, the tax-free income threshold is BDT 4,75,000 per year. Income above this amount is taxed based on the NBR’s tax rates.
How much tax does Bangladesh pay?
Tax rates vary based on income, starting from 10% and going up to 25% for higher income brackets. Corporate and other taxes differ.
Tax calculation formula in Bangladesh?
Tax = (Annual Taxable Income – Tax-Free Threshold) × Applicable Tax Rate
Income tax slab in Bangladesh?
➤ Up to BDT 3,50,000: 0% (tax-free)
➤ BDT 3,50,001 – 7,00,000: 10%
➤ BDT 7,00,001 – 12,00,000: 15%
➤ BDT 12,00,001 – 30,00,000: 20%
➤ Above BDT 30,00,000: 25%
Income tax rate for female in Bangladesh?
For women, the tax rate follows the standard income tax slabs, with a higher tax-free threshold of BDT 4,75,000.
Income tax on salary in Bangladesh?
Income tax on salary is deducted at source (TDS) by employers based on the annual taxable salary and tax slabs.
Bangladesh income tax calculator online?
You can use tools like bdincometaxcalculator.com to easily calculate your income tax online.