Hepatitis B infection caused by the hepatitis B virus. It is one of the serious viral infection and a global health problem. In the transmission of hepatitis B infection different phases, i.e., acute and chronic carrier stages play an important role. The chronic carries individuals do not exhibit any symptoms and are able to transmit the infection. Here we assessed the transmissibility associated with different infection stages of hepatitis B and generated an epidemic model with nonlinear incidence rate. In order to do this, first we formulate the model by splitting the infectious class into two subclasses, namely acutely infected and chronic carries with both horizontal and vertical transmission. The basic properties of the proposed model are presented. The basic reproductive number is obtained by using the next generation matrix approach. Biological sense of the threshold condition is investigated and discussed in detail. We also find the conditions to investigate all possible equilibria of the model in terms of the basic reproduction number. Finally, we perform numerical simulations to support our analytical work.