Nepal Salary Tax Calculator

Nepal uses a progressive tax system. First, deductions (standard 1/3 of income + SSF + insurance + CIT) are subtracted from gross income to get taxable income. For FY 2083/84 tax is then applied under one unified table for all individuals: 1% on the first NPR 10,00,000 (this Social Security Tax is waived for SSF members) · 10% on the next 5,00,000 (10L–15L) · 20% on the next 10,00,000 (15L–25L) · 27% on the next 15,00,000 (25L–40L) · 29% above NPR 40,00,000. Provisional — based on the Budget / Finance Bill 2083. [Source: Budget / Finance Bill 2083; IRD Nepal]

For FY 2083/84 (2026/27), Nepal uses a single unified table for every individual (the separate married-couple table was removed): 1% (0–10L) · 10% (10L–15L) · 20% (15L–25L) · 27% (25L–40L) · 29% above NPR 40,00,000. The first 1% band is a Social Security Tax waived for SSF members. The standard deduction of 1/3 of income (max 5.5L) is applied before slab calculations. Provisional — pending the gazetted Finance Act; verify at ird.gov.np. [Source: Budget / Finance Bill 2083; IRD Nepal]

Yes. SSF contributions reduce your taxable income by up to NPR 5,00,000/year (or 1/3 of employment income, whichever is lower). This is in addition to the standard deduction. SSF contributors are also exempt from the 1% Social Security Tax on the first slab — the first NPR 10,00,000 is taxed at 0% instead of 1%, since the 11% contribution already covers it. This calculator applies that waiver automatically when you tick "I contribute to SSF". [Source: Income Tax Act 2058, S.21(4); IRD Nepal]

Yes. Female taxpayers receive a 10% rebate on their final computed income tax. This is applied after calculating tax through all slabs — not a rate reduction. Example: if computed tax is NPR 30,000, a woman pays NPR 27,000. This applies to all female individual taxpayers in Nepal. [Source: Income Tax Act 2058 (as amended)]

The standard deduction for employment income is the lower of 1/3 of annual income or NPR 5,50,000. This is applied automatically — you do not claim it separately. For example, on NPR 12,00,000 annual income, the standard deduction is NPR 4,00,000 (1/3 = 4L, which is less than 5.5L). For income above NPR 16,50,000, the deduction is capped at NPR 5,50,000. [Source: Income Tax Act 2058]

Yes. For FY 2083/84 the Budget removed the separate married-couple slab table — every individual now uses one unified set of slabs (1% up to NPR 10,00,000, then 10%, 20%, 27%, and 29%). Previously married couples received NPR 1,00,000 higher thresholds; under the new structure the wider NPR 10,00,000 first band applies to everyone, so a filing-status choice is no longer needed. Provisional — pending the gazetted Finance Act; verify at ird.gov.np. [Source: Budget / Finance Bill 2083; IRD Nepal]

On NPR 10,00,000 annual salary (no extra deductions): standard deduction = NPR 3,33,333 (1/3) · taxable income = NPR 6,66,667. Under FY 2083/84 the whole amount falls within the 1% band (which now runs to NPR 10,00,000), so tax is just 1% × 6,66,667 ≈ NPR 6,667. If you contribute to SSF, that 1% is waived and your income tax is NPR 0. Use the calculator above for your exact figure.

The most effective ways: (1) Join SSF — deduct up to NPR 5,00,000 in contributions and have the 1% Social Security Tax on your first NPR 10,00,000 waived; (2) Buy life insurance — deduct up to NPR 40,000 in premiums; (3) Medical insurance — deduct up to NPR 20,000; (4) CIT/Pension contribution — deduct up to NPR 3,00,000. The standard 1/3 deduction (max NPR 5,50,000) applies automatically. Use this calculator to see the exact impact of each deduction.

The marginal rate is the rate on your highest rupee of income (e.g., 20% if your last rupee falls in the NPR 15,00,000–25,00,000 band). The effective rate is total tax ÷ gross income — always much lower because early income is taxed at only 1% and 10%. This calculator shows both — the effective rate in the results grid, and the marginal rate from the slab breakdown.

For salaried employees, income tax (TDS — Tax Deducted at Source) is deducted monthly by your employer and deposited with IRD Nepal by the 25th of the following month. The annual tax return must be filed by Poush end (mid-January) of the following fiscal year. Advance tax for self-employed individuals follows a quarterly schedule. Always verify current deadlines at ird.gov.np. [Source: Income Tax Act 2058; IRD Nepal]

Festival bonuses — including the Dashain Tihar allowance (typically one month's basic salary) — are treated as regular employment income under the Income Tax Act 2058 and taxed at your applicable progressive slab rate. There is no separate flat tax rate for bonuses. Your employer should increase monthly TDS deductions in the month(s) the bonus is paid to account for the extra income. If TDS was under-deducted during the year, the shortfall is settled during annual return filing. Enter it in the calculator's Festival / Dashain allowance field above to see the effect on your tax. [Source: Income Tax Act 2058, Section 8; IRD Nepal]

TDS (Tax Deducted at Source) is the mechanism by which employers deduct income tax from employees' salaries before payment. At the start of the year, the employer estimates annual tax liability based on declared salary and deductions, divides by 12, and deducts that amount each month. TDS must be deposited with IRD Nepal by the 25th of the following month. At year-end, the annual return reconciles actual tax vs. TDS deducted — excess TDS is refundable; any shortfall must be paid. [Source: Income Tax Act 2058, Section 87–92; IRD Nepal]

Yes. EPF contributions are deductible from taxable income under the same rules as SSF — up to NPR 5,00,000 per year or 1/3 of employment income, whichever is lower. If your employer contributes to EPF rather than SSF, your employee contribution is fully deductible within this cap. You cannot claim both SSF and EPF deductions simultaneously — the limit applies to combined eligible retirement fund contributions. [Source: Income Tax Act 2058, Section 21(4)]

Yes. Taxpayers aged 70 years or older receive a 25% rebate on their final computed income tax. This is applied after all slab calculations — not a rate reduction. A senior citizen with NPR 40,000 computed tax pays NPR 30,000 after the 25% senior rebate. This is separate from the women's 10% rebate and both can apply simultaneously — a woman aged 70+ gets a combined 32.5% effective reduction on computed tax. [Source: Income Tax Act 2058 (as amended)]

Non-residents earning income sourced from Nepal pay a flat rate of 25% on that income. This flat rate is not subject to progressive slabs, the standard deduction, women's rebate, or other resident concessions. If Nepal has a Double Taxation Avoidance Agreement (DTAA) with the non-resident's home country, the lower treaty rate applies. Non-resident employment income, service fees, and royalties paid by Nepal entities are typically withheld at source (TDS) at 25%. [Source: Income Tax Act 2058, Section 7(4); IRD Nepal]