The tax-free income limit is the absolute maximum amount of money you can earn in a fiscal year without having to pay any income tax. For general individual taxpayers, the government frequently adjusts this threshold in the national budget to account for inflation and everyday living costs. For the most recent fiscal years, this general limit usually sits around BDT 350,000 to BDT 375,000.
To offer financial relief, the NBR provides higher tax-free exemptions for specific demographic groups. For example, female taxpayers and senior citizens (aged 65 and above) usually enjoy a higher threshold of around BDT 400,000 to BDT 425,000. Persons with physical disabilities, gazetted war-wounded freedom fighters, and third-gender individuals also receive significantly higher exemptions. Once your income crosses your specific tax-free bracket, your tax liability is calculated progressively using slabs. The first taxable slab of income is usually taxed at 5%, followed by subsequent earning brackets at 10%, 15%, 20%, and scaling up to a maximum of 25% or 30% for the highest income earners.
