Before discussing the tax rates in Bangladesh, let’s explore the different tax systems. Globally, tax systems are categorized into three main types: Progressive, Regressive, and Proportional. A Progressive tax system imposes higher tax rates on individuals with increasing income levels. Conversely, a Regressive tax system applies lower tax rates as income rises. In a Proportional tax system, a uniform tax rate is levied on all taxpayers regardless of income. Some nations adopt a Hybrid tax system, combining elements from various tax structures.

Bangladesh employs a Progressive tax system to levy income taxes. More than 65% of budget revenue comes from tax revenue in Bangladesh. In addition, The tax system uses two concepts: Income Year and Assessment Year. This guide provides all rates for the Assessment Year. This blog post will delve into the income tax rates in Bangladesh for the year 2024-2025:


Individual Income Tax Rates: : 

Income tax rates for individual residents for the year 2024-2025 are as follows:

For regular taxpayers:

Tax Slab
Tax Rate
Up to Tk. 3,50,0000%
Next Tk. 1,00,0005%
Next Tk. 4,00,00010%
Next Tk. 5,00,00015%
Next Tk. 5,00,00020%
Next Tk. 20,00,00025%
On Balance30%

For Women and Senior Citizens above 65 years etc.:

Above is the tax exemption limit for regular taxpayers. The tax exemption limits for other types of taxpayers are as follows:

Tax Payers TypeProposed 2024-25
In Taka
General Taxpayer3.50 lakhs
Women and &
above 65 years of age
4.00 lakhs
Physically Challenged persons4.75 lakhs
Freedom fighter5.00 lakhs
Third gender4.75 lakhs
Threshold increased for parents or legal guardians of physically challenged child/adopted child  by Tk. 50,000 for each child.

    Corporate Tax rates:

    Corporate tax rates for other than individuals are as follows:

    ListedPublicly traded company that transfers shares worth more than 10% of its paid-up capital through IPO22.50%20%
    ListedPublicly traded company that transfers shares worth ten percent or less of its paid-up capital through IPO25%22.50%
    Non-listedDefined in Income Tax Act, 2023 as a company but Non-publicly traded company27.50%25%
    OPCOne Person Company (OPC)22.50%20%
    Banks, FI, InsurancePublicly traded bank, insurance, and financial institution (except merchant bank)37.50%Rebate N/A
    Banks, FI, InsuranceNon-publicly traded bank, insurance, and financial institution40%Rebate N/A
    Banks, FI, InsuranceMerchant bank37.50%Rebate N/A
    TobaccoCompany producing all sorts of tobacco items including cigarette, bidi, chewing tobacco, and gul45%
    (+ 2.5% Surcharge)
    Rebate N/A
    MobilePublicly traded mobile phone operator company holds at least 10% of its paid-up capital, out of which Pre-Initial Public Offering Placement cannot exceed 5%40%Rebate N/A
    MobileNon-publicly traded mobile operator company45%Rebate N/A
    SocietyCooperative Society20%Rebate N/A
    a. All types of income and receipts and all types of expenses and investments above 5 lakh Taka in each single transaction and above 36 lakh Taka in total annually must be done through bank transfer.
    b. If conditions fulfilled reduced rates are proposed.

    Read more: A guide to set off and carry forward of losses.

    This article is written by Monir Bhuiyan, a member of ACCA (Association of Chartered Certified Accountants) and ICAB (Institute of Chartered Accountants of Bangladesh).