Salary Tax Calculator Nepal

Under the budget reforms for FY 2083/84 (2026/27), Nepal has implemented a unified 5-slab progressive tax structure for resident individuals, replacing the old individual and couple categories. The tax slabs 2083/84 are: up to NPR 1,000,000 at 1% (social security tax, or 0% for SSF contributors), 1,000,001 to 1,500,000 at 10%, 1,500,001 to 2,500,000 at 20%, 2,500,001 to 4,000,000 at 27%, and above 4,000,000 at 29%. Calculate your progressive tax liability instantly using our salary tax calculator nepal.

The basic tax exemption threshold has been significantly increased to NPR 1,000,000 (10 Lakhs) for all resident individuals, up from the previous limit of NPR 500,000. Under the tax slabs 2083/84, any income up to 10 Lakhs is subject to a 1% social security tax, while active SSF contributors receive a 0% rate on this first slab. If you want to estimate your tax savings, use our income tax calculator nepal.

No, the Finance Act of FY 2083/84 has completely removed the separate Couple tax concept. A single unified slab structure now applies to all natural resident persons, regardless of their marital status. This simplifies tax preparation and ensures equity among taxpayers. Use our salary tax calculator nepal to determine your net tax liability.

The highest marginal income tax rate on employment salary in Nepal has been reduced from 39% to 29% for taxable income exceeding NPR 4,000,000 (40 Lakhs). This reform lowers the tax burden on high-income earners. Run your numbers on our salary tax calculator nepal to see your annual tax savings.

Enrolling in the Social Security Fund (SSF) provides a dual benefit: (1) SSF contributors enjoy a 0% tax rate on the first NPR 10 Lakh (saving up to NPR 10,000 in social security tax), and (2) employee contributions are deductible up to NPR 500,000 or 1/3 of income. This makes the ssf benefit nepal a highly lucrative tax-saving instrument.

To calculate your salary tax in Nepal: (1) sum your monthly gross salary and bonuses, (2) subtract allowable deductions like SSF, CIT, and life/health insurance premiums, (3) apply the progressive tax slabs 2083/84 on the remaining taxable income, and (4) deduct the 10% female tax rebate if eligible. The easiest way to get an accurate monthly calculation is to use our salary tax calculator nepal.

Non-SSF contributors pay a 1% social security tax on their first NPR 10 Lakh of income (amounting to NPR 10,000). SSF contributors are exempt from this 1% tax (paying 0% on the first slab). Additionally, SSF contributions are deducted from gross salary. Compare the exact difference using the side-by-side comparison on our income tax calculator nepal.

The combined retirement fund deduction limit (EPF + CIT + SSF contributions) is capped at the lower of NPR 500,000 or 1/3 of your gross taxable income. Our salary tax calculator nepal automatically checks and applies these statutory boundaries.

The voluntary CIT annual contribution is capped at a maximum of NPR 300,000. It is also subject to the combined retirement fund cap of NPR 500,000 or 1/3 of gross income. Use the cit deduction nepal option in our calculator to model your deductions.

Yes, resident taxpayers can deduct their life insurance annual premium from taxable income up to a maximum of NPR 40,000 (increased from the previous limit). Enter your premium in our salary tax calculator nepal to view your tax savings.

Health or medical insurance premiums are deductible from taxable income up to a maximum of NPR 20,000 per year. Apply this exemption in our income tax calculator nepal to reduce your taxable income.

A resident female employee whose source of income is solely from employment is eligible for a 10% tax rebate on their total computed tax liability. This female tax rebate nepal is automatically calculated when you check the female gender toggle on our salary tax calculator nepal.

Taxpayers working in remote areas receive an additional tax deduction depending on the remote category. The deductions are A: NPR 50,000; B: NPR 40,000; C: NPR 30,000; D: NPR 20,000; and E: NPR 10,000. Select your remote category in our salary tax calculator nepal to apply this benefit.

Nepal's civil rules classify remote districts into five categories. Category A includes extremely remote mountain districts like Humla and Mugu, while Category E includes less remote terai or hill districts. Select your region in our income tax calculator nepal to check your remote area allowance.

For FY 2082/83 (and FY 2081/82 and 2080/81), individuals were taxed at 1% up to 500,000, 10% on the next 200,000, 20% on the next 300,000, 30% on the next 1,000,000, 36% on the next 3,000,000, and 39% above 5,000,000. Couples had a 600,000 threshold for the 1% rate.

The 1% social security tax applies to the first slab of taxable income (up to 10 Lakhs in FY 2083/84). However, it is waived (0% rate) for employees registered in the Social Security Fund (SSF), as their income is already taxed for social security purposes. Our salary tax calculator nepal dynamically applies this rule.

Tax Deducted at Source (TDS) is the amount of income tax withheld by employers from your monthly salary and deposited to the Inland Revenue Department (IRD). Our salary tax calculator nepal computes the monthly TDS liability so you can verify your payslip.

No, festival bonuses (like Dashain bonus) and performance bonuses are added to your gross annual income and taxed under the same progressive tax slabs 2083/84.

To calculate monthly take-home salary: subtract your monthly tax (TDS) and monthly employee retirement contributions (SSF employee 11% or EPF 10% + CIT) from your gross monthly salary. Run these figures on our salary tax calculator nepal to see your disposable income.

No, only the employee's contribution (11% of basic salary) is deducted from your gross income. The employer's 20% contribution is an additional benefit paid directly to your pension and gratuity accounts. Learn more about the ssf benefit nepal on our tool page.

If your contributions to EPF, CIT, or SSF exceed NPR 500,000 or 1/3 of your income, the excess amount is not tax-deductible and is added back to your taxable income. Our salary tax calculator nepal automatically caps your deductions at the legal limit.

For resident pensioners, a special deduction of 25% of the basic exemption limit (or actual pension income, whichever is lower) is allowed, effectively increasing their tax-free threshold.

Residents earning foreign currency from employment abroad or software/consulting services are subject to specific withholding taxes (often 5% or 15% flat rate depending on declaration).

The deadline for filing your annual income tax return (Dakhila) is within 3 months of the end of the fiscal year, which falls by Ashwin end (mid-October).

The Inland Revenue Department (IRD) taxpayer portal provides a basic tax computation sheet, but it lacks advanced deduction caps, remote allowances, and side-by-side SSF comparisons. Our salary tax calculator nepal is a modern, fully featured tool.