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Salary Tax Calculator
Salary is taxed by the year, not by the month — so this calculator annualises your monthly pay, takes the tax-free third off, runs the year's slabs once, and then shows you the monthly equivalent your employer should roughly be deducting.
Worked check: a monthly gross of ৳1,50,000 is ৳18,00,000 a year. Less the capped exemption of ৳5,00,000, total income is ৳13,00,000 and the year's tax is ৳1,30,000 — a monthly equivalent of ৳10,833.33. Enter 150000 above and check.
Your salary tax, month by month
Since the Income Tax Act 2023 there are no separate tax-free allowances — the one-third rule below replaces them.
A bonus raises the year's income, not the monthly rate — it is added to the year, then the year is taxed once.
How salary tax actually works
Three things happen between your gross salary and your tax. First, the exemption: one third of employment income, capped at ৳5,00,000, is simply not income for tax purposes — this single rule replaced the separate house-rent, medical and conveyance exemptions when the Income Tax Act 2023 came in. Second, what remains is your total income, and the slab ladder applies from your category's tax-free limit. Third, the investment rebate and the minimum tax adjust the result, in that order. The salary tax guide walks through each step with the figures filled in.
Salary tax questions
Why is one third of my salary tax-free?
The Income Tax Act 2023 replaced the old patchwork of separate allowance exemptions (house rent, medical, conveyance) with a single rule: one third of your employment income is exempt, up to a cap — ৳5,00,000 under the Finance Act 2026 (it was ৳4,50,000 before the Finance Ordinance 2025 raised it). The exempt part comes off before the slabs are applied.
My employer deducts the same amount every month. Is that right?
Roughly, yes: salary TDS spreads the expected yearly tax across the year. It will not match this calculator to the taka if you have bonuses, other income, or investments the employer does not know about — the return at year-end settles the difference, with credit for everything already deducted.
Does a bonus get taxed at a higher rate?
There is no separate bonus rate. A bonus is employment income: it joins the year’s total, the one-third exemption is worked out on the whole, and the slabs apply once. A bonus can push you into a higher slab for part of the income, which is why the tax on a bonus month looks steep — the monthly equivalent shown here is the honest average.