The following guide covers the 2025 individual income tax framework in Bangladesh, focusing on the progressive tax rate structure, applicable brackets, and additional surtaxes related to net wealth or property ownership. All data is sourced from current year regulations to support clear decision-making for international professionals and business owners.
Bangladesh Individual Income Tax: 2025 Rate Structure
Bangladesh operates a progressive income tax system, with tax rates increasing as income rises. The assessment basis is annual income. The following table summarizes the official tax brackets for individuals for the tax year 2025. All amounts are in Bangladeshi Taka (BDT); USD equivalents provided at an exchange rate of 1 USD = 110 BDT (approximate, for informational purposes only).
| Income Range (BDT) | Income Range (USD) | Rate (%) |
|---|---|---|
| BDT 0 – BDT 375,000 | $0 – $3,409 | 0% |
| BDT 375,001 – BDT 675,000 | $3,409 – $6,136 | 10% |
| BDT 675,001 – BDT 1,075,000 | $6,137 – $9,773 | 15% |
| BDT 1,075,001 – BDT 1,575,000 | $9,773 – $14,318 | 20% |
| BDT 1,575,001 – BDT 3,575,000 | $14,318 – $32,500 | 25% |
| BDT 3,575,001 and above | $32,500+ | 30% |
This tiered rate structure ensures lower tax for earnings below BDT 375,000, with rates progressively increasing for higher income segments.
Surtax Regime on Net Wealth and Specified Assets
Additional surtaxes may apply to individuals with significant net wealth or certain asset holdings. The table below details these conditions:
| Condition | Surtax Rate (%) |
|---|---|
| Net wealth above BDT 40,000,000 (approx. $363,636) to BDT 100,000,000 ($909,091), or ownership of more than one motor car, or house property over 8,000 sq. ft. | 10% |
| Net wealth above BDT 100,000,000 ($909,091) to BDT 200,000,000 ($1,818,182) | 20% |
| Net wealth above BDT 200,000,000 ($1,818,182) to BDT 500,000,000 ($4,545,455) | 30% |
| Net wealth above BDT 500,000,000 ($4,545,455) | 35% |
Surtaxes are triggered not only by net wealth levels but also by asset ownership such as multiple vehicles or substantial property. These rates apply in addition to the standard income tax rates.
Additional Features and Noteworthy Absences in 2025
- Assessment Basis: Income is taxed on a progressive basis, with no flat rate applying to all taxpayers.
- Tax-Free Allowance: For 2025, BDT 375,000 (approx. $3,409) is exempt from individual income tax.
- Holding Periods: There are no specific minimum or maximum holding periods impacting the income tax calculation for individuals.
- Missing Data: No official flat personal income tax rate is disclosed for Bangladesh, as the system is fully bracketed and progressive.
Pro Tips for Managing Personal Tax in Bangladesh
- Carefully track your annual income to determine your applicable tax bracket and avoid surprises at year-end, especially if earnings fluctuate close to bracket thresholds.
- If your net wealth or property/vehicle holdings approach surtax criteria, consult with a trusted tax advisor for effective structuring to minimize additional surtax liability.
- Take advantage of the full tax-free allowance by timing income when possible or deferring windfalls to avoid entering a higher tax bracket unnecessarily.
- Be mindful that holding substantial real estate or multiple vehicles can trigger surtax, even below the highest wealth tiers.
- Stay updated with official information on the Bangladesh National Board of Revenue website, as individual tax policies can change annually.
Key Takeaways on Bangladesh’s Individual Income Tax System
The 2025 individual income tax structure in Bangladesh is characterized by progressive brackets, a meaningful tax-free threshold, and surtaxes impacting high-net-worth or high-asset individuals. Because rates step-up quickly and additional charges are levied on net wealth, understanding both your income and asset base is critical for accurate compliance. Always refer to Bangladesh’s official revenue authorities for periodic updates, and maintain detailed records in case of audit or future law changes.