What is the tax-free income limit?

Last updated

For assessment year 2026-27 the tax-free income limit for a general taxpayer is ৳4,00,000. It is ৳4,50,000 for women and people aged 65 or over, ৳5,25,000 for third-gender taxpayers and persons with a disability, and ৳5,50,000 for gazetted war-wounded freedom fighters and July warriors.

Taxpayer categoryTax-free income
General৳4,00,000
Woman, or aged 65 or above৳4,50,000
Third gender, or person with a disability৳5,25,000
Gazetted war-wounded freedom fighter or July Warrior৳5,50,000

What it means

The first part of your taxable income for the year carries no tax. Above it, tax is charged in steps, and each rate applies only to the income inside its own step.

Taxable income rangeRate
৳0 – ৳4,00,0000%
৳4,00,000 – ৳7,00,00010%
৳7,00,000 – ৳11,00,00015%
৳11,00,000 – ৳16,00,00020%
৳16,00,000 – ৳36,00,00025%
Above ৳36,00,00030%

These steps are for a general taxpayer; for anyone with a higher limit, the later steps move up with it. Parents of a child or dependant with a disability get a higher limit still; see the tax rules page.

A third of a private-sector salary, up to a cap, is exempt anyway, so in monthly salary terms the limit feels higher. See your figure in tax by monthly salary.