Tax-free income limit remains unchanged for FY26

The tax-free income threshold for general individual taxpayers remains unchanged at Tk 350,000 in the 2025-26 fiscal year beginning on July 1, 2025.

Finance Adviser Salehuddin Ahmed floated the tax proposals for the next fiscal year in a televised budget speech he gave on Monday while placing a Tk7.9 trillion budget.

According to the proposals, the tax-free income ceiling will remain Tk400,000 for women or persons aged 65 or above, Tk 475,000 for persons with disability and third-gender persons, and Tk 500,000 for gazette freedom fighters.

The adviser, however, proposed an increase in income tax for 2026-27 and 2027-28 fiscal years -- to Tk 375,000 for general individual taxpayers, Tk 425,000 for women or persons aged 65 or above, 500,000 for persons with disability and third-gender persons, Tk 525,000 for gazette freedom fighters. Tax-exemption limit for gazette July 2024 Movement fighters was proposed at Tk 525,000 for 2026-27 and 2027-28 fiscal years.

The tax slabs for general individual taxpayers in the next fiscal year will remain the same as the current FY. The tax for Tk 350,000 will stay nil, 5.0 per cent for next Tk 1,00,000, 10 per cent for next Tk 4,00,000, 15 per cent for next Tk 4,00,000, 20 per cent for next Tk 5,00,000, and 25 per cent for the remaining amount.

Changes in the tax slabs for the subsequent two FYs were proposed in the adviser’s budget speech. According to his proposal, the tax will be nil for Tk 375,000 while 10 per cent will be imposed for next Tk 3,00,000, 15 per cent for next Tk 4,00,000, 20 per cent for next Tk 5,00,000, 25 per cent for next Tk 2.0 million, and 30 per cent for the remaining amount.