How to use the calculator
Enter monthly rent and the number of months, then identify whether the landlord is an individual or an entity. Enter the local house-rent tax rate confirmed by the municipality and indicate whether it is deducted from the landlord's rent.
Federal TDS and local house-rent tax are different
| Situation | Federal withholding |
|---|---|
| House rent received by a natural person | 0% federal TDS |
| Resident rent paid to a company, firm or entity | Generally 10% |
A municipality may separately levy house-rent tax. Do not assume that a local tax receipt and federal TDS certificate are the same document.
Worked example
For Rs 30,000 monthly rent over 12 months, gross rent is Rs 3,60,000. If the landlord is an individual, federal TDS is zero. At an example local rate of 10%, local tax is Rs 36,000; if the tenant deducts it from rent, the landlord receives Rs 3,24,000.
Sources and disclaimer
Rules reviewed 21 June 2026 against Nepal's Income Tax Act 2058, amended through Finance Act 2082, especially Section 88, and the IRD house-rent forms section. Local rates can change; verify with the property's municipality and a tax professional.
Frequently asked questions
Is 10% TDS deducted from every house rent payment in Nepal?
No. Under the current Income Tax Act, house rent received by a natural person is excluded from federal rent withholding. Rent paid to a company, firm or other entity is generally subject to 10% federal withholding. Local house-rent tax can still apply.
What is the municipality house-rent tax rate?
The responsible local government sets and administers local house-rent tax. The calculator provides an editable rate because the applicable rate and collection process should be confirmed with the municipality where the property is located.
Who should deposit rent tax?
That depends on the type of tax, the landlord, the payer and local rules. A tenant or business may deduct and deposit tax, while in other arrangements the landlord pays it directly. Check the lease and obtain the official receipt.
Does this calculator file or pay tax?
No. It only estimates the amounts. Use the relevant municipality and IRD systems or seek professional advice for filing and payment.