Calculating income tax in Nepal is an essential part of financial planning for all salaried and self-employed individuals. For the fiscal year 2083/84 (2026/2027), the government has laid out progressive tax rates that vary based on whether you file as a Single individual or a Married couple.
Tax Slabs for Single Individuals
For single taxpayers, the tax slabs start at a basic exemption of Rs. 5,00,000 (taxed at 1% social security tax). Subsequent income is taxed at progressive rates of 10%, 20%, 30%, 36%, and a 39% surcharge on higher income levels.
Eligible Deductions
You can deduct contributions made to the Employee Provident Fund (EPF), Citizen Investment Trust (CIT), and social security funds. In addition, premium payments for life insurance and health insurance can also be deducted up to predefined limits.