How much of a salary is tax-free?
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In a private-sector job, one third of the year's salary receipts or ৳5,00,000, whichever is lower, is exempt (assessment year 2026-27). The rest counts as taxable income.
What counts as salary
Basic pay, allowances, festival allowances, bonuses, leave encashment and anything else the employer pays are added together before the one third is worked out. If your pay changed during the year, add up each period; in the calculators, "Break this down" lets you enter each period with its own months.
Government pay-scale jobs
For an employee under a government pay order, only basic pay, festival allowance and bonus are taxable; the other pay-order allowances are exempt. The one-third exemption does not apply to them. More: tax for government employees.
To see how it works out on your salary, go to tax by monthly salary.