How to use this calculator
Pick the fiscal year, enter your salary (per month or per year), and tick whether you contribute to SSF or are a female taxpayer. Add any deductions to get your exact tax, monthly TDS and take-home pay, with a slab-by-slab breakdown.
Income tax for salaried people in Nepal
Salaried individuals in Nepal pay income tax on a progressive slab system run by the Inland Revenue Department (IRD), with the fiscal year running from Shrawan to Ashad (about mid-July to mid-July). Employers withhold tax every month as TDS. Contributions to the Social Security Fund (SSF), Employees Provident Fund (EPF) and Citizen Investment Trust (CIT), along with life and health insurance premiums, reduce taxable income, and the 1% Social Security Tax on the first slab is waived for SSF contributors. The Budget for FY 2083/84 raised the tax-free threshold to Rs 10 lakh, removed the single and married distinction and lowered the top rate, so your take-home pay can change noticeably from one fiscal year to the next.
New income tax slabs — FY 2083/84 (2026/27)
| Taxable income (Rs) | Rate |
|---|---|
| up to 10,00,000 | 1% (waived for SSF) |
| 10,00,001 – 15,00,000 | 10% |
| 15,00,001 – 25,00,000 | 20% |
| 25,00,001 – 40,00,000 | 27% |
| above 40,00,000 | 29% |
The FY 2083/84 figures are based on Budget 2083/84 (announced 29 May 2026) and take effect from mid-July 2026, pending the final Finance Act 2083. Always confirm against the gazetted Act before filing.
Frequently asked questions
What are the new income tax slabs in Nepal for FY 2083/84?
Under the new system there is one table for all individuals: 1% up to Rs 10 lakh (Social Security Tax), 10% from Rs 10–15 lakh, 20% from Rs 15–25 lakh, 27% from Rs 25–40 lakh, and 29% above Rs 40 lakh. The single/married distinction has been removed. These were announced in Budget 2083/84 and take effect from mid-July 2026, pending the final Finance Act.
How is the old FY 2082/83 system different?
FY 2082/83 has six slabs and separate bands for single (first Rs 5 lakh) and married (first Rs 6 lakh) filers, with a top rate of 39% above Rs 50 lakh. It applies until mid-July 2026. You can switch the fiscal year at the top of the calculator.
What is the 1% Social Security Tax, and who is exempt?
The first slab carries a 1% Social Security Tax. It is waived if you contribute to the Social Security Fund (SSF) or an approved retirement fund — tick the 'SSF contributor' box to remove it.
Which deductions reduce my taxable income?
Retirement contributions (SSF/EPF/CIT) up to the lower of one-third of income or Rs 5,00,000, life insurance premium up to Rs 40,000, and health insurance premium up to Rs 20,000. Women earning only from employment also get a 10% rebate on the computed tax.