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Freelancer / business income salary calculator - Bangladesh 2026

Free self-employed income calculator for Bangladesh (2026): estimate net take-home profit for sole traders, freelancers and businesses after income tax and contributions. Educational, not tax advice.

Abu Taleb

by Abu Taleb

Methodology & sources

Bangladesh salary calculator — methodology (English)

This tool implements a simplified natural person model aligned with the Income Tax Act, 2023 and NBR Paripatra-style slabs for assessment years 2026–27 / 2027–28: progressive rates, Sixth Schedule employment exclusion (one-third of employment income or Tk 500,000, whichever is lower, raised from Tk 450,000 by Finance Ordinance 2025), general investment rebate (lower of 3% of income, 15% of eligible investment, Tk 10 lakh), minimum tax (Tk 5,000 or Tk 1,000 for new taxpayers when income exceeds the profile threshold), optional private PF on basic wages, and optional wealth surcharge. Freelancer mode supports the temporary IT / digital services exemption (1 Jul 2024–30 Jun 2027) when the bank-transfer condition is ticked.

Salaried employee

Uses employment income, exclusion, rebate, minimum tax, and optional PF. Net-to-gross uses a numerical search on annual cash after tax and PF.

Freelancer / business income

Taxable profit = receipts minus expenses (or direct net profit input). Same slab engine; IT freelancing exemption zeroes tax in the model when applicable.

Frequently asked questions

Bangladesh - freelancer / business income

IT freelancing exemption - who qualifies?
Statutory income-tax exemption for specified IT and listed digital services: software development, web design, data entry / digital content, online freelancing (Upwork, Fiverr) within NBR's listed codes. Condition: 100% of revenue via the formal banking channel (not cash/mobile wallet). Window: 1 July 2024 - 30 June 2027. Tick "IT freelancing exemption" in the calculator.
Bank-only condition - why does it matter?
To claim the IT exemption, all income, expenditure AND investment must flow through bank transfer (or registered MFS), with documentation. Cash / hawala disqualify - the entire exemption is lost, even for IT work. Tick "All income through bank transfer" only if sure. NBR audit can request bank statements for 3-5 years back.
Can I deduct business expenses?
Yes - real deduction: annual receipts − annual allowable business expenses = net business income (taxable). Allowable: home office (pro-rated), laptop/software, internet, office/co-working, training, professional services (accountant, lawyer), marketing. Enter the total in "Annual allowable business expenses". Keep receipts - NBR may request them in audit.
Does an IT freelancer still pay the Tk 1,000 minimum tax?
If you earn above the nil base and qualify for the IT exemption, tax on that income = 0, BUT the Tk 1,000 minimum tax floor still applies (profile-based) - you must file a return and pay. If the IT exemption covers all income, the minimum tax is just that floor. The calculator shows: resultBdMinimumTaxAnnual.
Section 78 investment rebate - do freelancers get it?
Yes - Section 78 works the same as for salaried (15% rebate on eligible investment, capped at 25% of taxable income or Tk 10 lakh). If the IT exemption covers all income, the rebate has nothing to offset. Most useful for non-exempt freelancers with mid-range income. Enter the investment in the corresponding field.
VAT / SD for IT freelance - does it apply?
IT/ITES (listed services) are generally VAT-exempt in Bangladesh - you do not charge 15% VAT on export invoices. You must still register with the NBR VAT portal even as exempt (if turnover > Tk 30 lakh). Income-tax exemption and VAT exemption are two separate regimes - qualifying for one does not automatically give the other. The calculator does not model VAT.