Compute net rental income after the flat repair allowance, municipal tax, insurance, and loan interest deductions under the ITA 2023 House Property head — and see the real incremental tax it causes.
Compute net rental income after the repair allowance, municipal tax, insurance, and loan interest deductions under the ITA 2023 House Property head — and see the real incremental tax it causes.
Percentage shown is the flat repair allowance rate (no receipts required)
| Gross Annual Rent | ৳360,000 |
| Repair Allowance (25%) | −৳90,000 |
| Municipal Tax | −৳15,000 |
| Insurance Premium | −৳5,000 |
| Loan Interest | −৳0 |
| Net Rental Income | ৳250,000 |
Income Tax Act 2023 — FY2025-26 / FY2026-27
| Property Type | Allowance Rate | Notes |
|---|---|---|
| Residential Property | 25% | Flat 25% of gross rent, no repair bills/receipts required |
| Commercial Property | 30% | Flat 30% of gross rent, no repair bills/receipts required |
| Taxpayer Category | Exemption Threshold |
|---|---|
| General Taxpayer (Male) | ৳350,000 |
| Female & Senior Citizens (65+ years) | ৳400,000 |
| Persons with Disabilities & Third Gender | ৳475,000 |
| Gazetted War-Wounded Freedom Fighters | ৳500,000 |
| Band | Rate |
|---|---|
| Up to category exemption threshold | 0% |
| Next ৳1,00,000 | 5% |
| Next ৳4,00,000 | 10% |
| Next ৳5,00,000 | 15% |
| Next ৳5,00,000 | 20% |
| Balance above ৳18,50,000 | 25% |
Gain on sale of the property is taxed separately under the Capital Gains head of ITA 2023; Advance Income Tax is typically collected at the point of registration under ITA 2023 s.53H
For property-sale/registration-stage stamp duty and s.53H source-tax figures, see our separate Property Tax hub — this tool computes only the annual rental income tax liability and does not duplicate registration-stage numbers.
Visit the Property Tax Hub →Authoritative briefings grounded in the ITA 2023 House Property income head
ITA 2023 applies a simplified, documentation-free repair allowance against house property income — 25% for residential and 30% for commercial. This guide explains the rationale and how it's calculated.
Beyond the repair allowance, three direct-input expenses can be deducted from house property income: municipal tax, insurance premium, and loan interest. Here's how each qualifies.
Net house property income is not a separate tax — it stacks on top of the taxpayer's other total taxable income and is taxed at the same progressive slabs. Here's what that means in practice.
Landlords in Bangladesh frequently make a handful of specific mistakes that increase tax risk. This guide highlights the most common ones and how to avoid them.
Landlords frequently conflate three distinct tax obligations. This guide draws a clear line between holding tax, registration-stage tax, and annual rental income tax.
Walk through a realistic example showing how to compute the net tax liability on rental income from two different properties (one residential, one commercial), step by step.
Guidance based on the ITA 2023 House Property income head
The slabs and exemption thresholds below are current for FY2025-26 / FY2026-27 — they may be revised annually, so verify against the latest Finance Act before final return filing.
This calculator provides an educational estimate only. Consult a qualified tax lawyer or chartered accountant before filing an actual rental income tax return. Tax rates and thresholds may change with the annual Finance Act.
If total allowable deductions (repair allowance + municipal tax + insurance + loan interest) exceed gross rental income, this simple model shows net income as zero. In practice, ITA 2023 provides separate loss carry-forward treatment for the house property head, which is out of scope for this tool — consult a tax advisor.