Salary Tax Calculator Nepal — FY 2083/84 New Tax Slabs
Add bonus, CIT, insurance and school fees Optional
📋 FY 2083/84 Tax Slabs
Up to NPR 10L → 1% | 10–15L → 10% | 15–25L → 20% | 25–40L → 27% | Above 40L → 29%
Same slabs for married and single taxpayers. SSF contributors don't pay the 1%.
This calculator works out your income tax and take-home pay using Nepal’s FY 2083/84 tax slabs.
Most simple calculators apply the tax slabs to your gross salary. That overstates the tax for most employees. In real life, your SSF, PF or CIT contribution and your insurance premiums reduce your taxable income first. This calculator includes all of them.
It covers:
- The new FY 2083/84 slabs, with one table for everyone
- SSF, PF and CIT contributions, with the legal limit applied for you
- Life, health and home insurance
- The new school-fee deduction for parents
- The 1% Social Security Tax waiver for SSF contributors
- The 10% tax rebate for women
- Festival bonus
Last checked: September 2026, against the Finance Act 2083 and the rates published by the Inland Revenue Department.
New Income Tax Slabs Nepal — FY 2083/84
The FY 2083/84 slabs apply from Shrawan 1, 2083 (17 July 2026). They were announced in the budget on Jestha 15, 2083 (29 May 2026). They became law with the Finance Act 2083, authenticated on 14 July 2026.
The biggest change is that Nepal now has one table for everyone. The separate table for married couples is gone.
| Annual Taxable Income | Tax Rate | Tax on This Slab | Total Tax at Top of Slab |
|---|---|---|---|
| Up to NPR 10,00,000 | 1% | NPR 10,000 | NPR 10,000 |
| NPR 10,00,001 to 15,00,000 | 10% | NPR 50,000 | NPR 60,000 |
| NPR 15,00,001 to 25,00,000 | 20% | NPR 2,00,000 | NPR 2,60,000 |
| NPR 25,00,001 to 40,00,000 | 27% | NPR 4,05,000 | NPR 6,65,000 |
| Above NPR 40,00,000 | 29% | 29% of the amount above 40 lakh | NPR 6,65,000 + 29% |
Two details worth knowing:
- The 1% is the Social Security Tax. SSF contributors don’t pay it. For them, the first NPR 10 lakh is taxed at 0%.
- The top rate is written as 27% plus a 2% surcharge in the law. It works out the same as the 29% shown above.
Is Income Up to Rs 10 Lakh Tax-Free?
You may have seen headlines saying income up to NPR 10 lakh is now tax-free. That’s not quite right.
Income up to NPR 10 lakh is taxed at 1%. On a full NPR 10 lakh, that’s NPR 10,000 a year. It only becomes tax-free if you contribute to the Social Security Fund.
If you aren’t sure what SSF actually gives you in return, read my plain-language guide to SSF in Nepal.
Deductions That Lower Your Tax
Tax is charged on your taxable income, not your gross salary. Taxable income is your gross income minus the deductions below. The calculator applies every limit for you.
| Deduction | Limit for FY 2083/84 | Notes |
|---|---|---|
| Retirement contributions (SSF, PF, CIT) | The lowest of: what you paid, NPR 5 lakh, or one-third of your income | One combined limit for all three |
| Life insurance premium | Up to NPR 40,000 a year | Policy in your own name |
| Health insurance premium | Up to NPR 20,000 a year | |
| Home insurance premium | Up to NPR 10,000 a year | Up from NPR 5,000 |
| Children’s school fees | 25% of fees paid, up to NPR 25,000 a year | New for FY 2083/84. Schools in Nepal only |
The school-fee deduction is brand new. It wasn’t in the budget speech. It was added when the Finance Bill was revised in June 2026. Many calculators don’t include it yet.
The retirement limit catches people out. Most guides say “up to NPR 5 lakh”, but the one-third rule matters too. If you earn NPR 3.6 lakh a year, the most you can deduct is NPR 1.2 lakh, even if you contribute more.
The 10% Rebate for Women
If you’re a woman and your only income is salary, you get a 10% rebate on your tax. This comes off the tax you owe, not off your income. It still applies in FY 2083/84.
What This Calculator Doesn’t Cover
A few special cases aren’t included. If one applies to you, your tax will be lower than the calculator shows:
- Pension income. Pensioners get a larger first slab of NPR 12.5 lakh and don’t pay the 1%.
- People with a disability. The first slab is NPR 15 lakh.
- Remote-area allowance. This ranges from NPR 10,000 to NPR 50,000, depending on the area’s category.
- Medical expense tax credit. This is 15% of eligible bills, up to NPR 750.
How Much Tax Will I Pay? Examples at Common Salaries
These examples come straight from the calculator above. The SSF examples assume your basic salary is half your gross salary: you pay 11% of basic, and your employer adds 20%.
| Monthly Salary | SSF? | Annual Tax | Monthly Tax (TDS) | Monthly Take-Home |
|---|---|---|---|---|
| NPR 50,000 | No | NPR 6,000 | NPR 500 | NPR 49,500 |
| NPR 50,000 | Yes (NPR 2,750/month) | NPR 0 | NPR 0 | NPR 47,250 |
| NPR 1,00,000 | No | NPR 30,000 | NPR 2,500 | NPR 97,500 |
| NPR 1,00,000 | Yes (NPR 5,500/month) | NPR 13,400 | NPR 1,117 | NPR 93,383 |
| NPR 2,00,000 | No | NPR 2,40,000 | NPR 20,000 | NPR 1,80,000 |
| NPR 2,00,000 | Yes (NPR 11,000/month) | NPR 2,03,600 | NPR 16,967 | NPR 1,72,033 |
Notice that SSF members pay less tax but take home a little less each month. That’s because their SSF contribution comes out of their pay. The difference goes into their SSF account instead of being lost as tax.
Worked Example: NPR 1 Lakh a Month With SSF
Here’s exactly how the calculator gets NPR 13,400 for someone earning NPR 1 lakh a month with a basic salary of NPR 50,000, in SSF:
| Step | Amount |
|---|---|
| Annual salary (1,00,000 × 12) | NPR 12,00,000 |
| Add: employer’s SSF share (20% of 50,000 × 12) | + NPR 1,20,000 |
| Less: total SSF contribution (31% of 50,000 × 12) | − NPR 1,86,000 |
| Taxable income | NPR 11,34,000 |
| First NPR 10,00,000 at 0% (SSF member, so no 1%) | NPR 0 |
| Next NPR 1,34,000 at 10% | NPR 13,400 |
| Annual tax | NPR 13,400 |
Old vs New Tax Slabs — What Changed in FY 2083/84
Here are the FY 2082/83 slabs for comparison. If a calculator asks whether you’re married, or shows rates of 36% or 39%, it’s still using these old numbers.
FY 2082/83 — Single
| Annual Taxable Income | Tax Rate |
|---|---|
| Up to NPR 5,00,000 | 1% |
| NPR 5,00,001 to 7,00,000 | 10% |
| NPR 7,00,001 to 10,00,000 | 20% |
| NPR 10,00,001 to 20,00,000 | 30% |
| NPR 20,00,001 to 50,00,000 | 36% |
| Above NPR 50,00,000 | 39% |
FY 2082/83 — Married Couple
| Annual Taxable Income | Tax Rate |
|---|---|
| Up to NPR 6,00,000 | 1% |
| NPR 6,00,001 to 8,00,000 | 10% |
| NPR 8,00,001 to 11,00,000 | 20% |
| NPR 11,00,001 to 20,00,000 | 30% |
| NPR 20,00,001 to 50,00,000 | 36% |
| Above NPR 50,00,000 | 39% |
Side by Side
| Feature | FY 2082/83 (Old) | FY 2083/84 (New) |
|---|---|---|
| First slab (1%) | Up to NPR 5L single / 6L married | Up to NPR 10L for everyone |
| Top rate | 39% | 29% |
| Number of slabs | 6 | 5 |
| Married vs single | Different tables | One table for all |
| Home insurance deduction | NPR 5,000 | NPR 10,000 |
| School-fee deduction | None | 25% of fees, up to NPR 25,000 |
How Much Less Will I Pay?
Take a single person with a taxable income of NPR 12 lakh:
| FY 2082/83 (Old, Single) | FY 2083/84 (New) | |
|---|---|---|
| First slab | NPR 5,00,000 at 1% = NPR 5,000 | NPR 10,00,000 at 1% = NPR 10,000 |
| Next slabs | NPR 2L at 10% + NPR 3L at 20% + NPR 2L at 30% = NPR 1,40,000 | NPR 2,00,000 at 10% = NPR 20,000 |
| Annual tax | NPR 1,45,000 | NPR 30,000 |
That’s NPR 1,15,000 less tax a year, or about NPR 9,583 more in your pocket every month.
How Nepal’s Income Tax Works
Nepal uses a progressive tax system. You don’t pay one rate on all your income. Each slice of income is taxed at the rate for its slab.
Think of it like filling buckets. The first bucket holds NPR 10 lakh and is taxed at 1%. Once it’s full, the next NPR 5 lakh goes into the second bucket at 10%. And so on.
This means moving into a higher slab never makes you worse off. Only the money above the line is taxed at the higher rate.
How to Calculate Your Take-Home Salary
This is what the calculator does, step by step:
- Multiply your monthly gross salary by 12, and add any festival bonus. If you’re in SSF or PF and your employer pays their share on top of your salary, also add that share (20% or 10% of basic). If your gross already includes it, as with cost-to-company salaries, don’t add it again. This is your annual income for tax.
- Subtract your deductions: SSF or PF contributions (yours and your employer’s) plus CIT, up to NPR 5 lakh or one-third of your income; then insurance premiums and school fees, each within its limit.
- What’s left is your taxable income.
- Apply the FY 2083/84 slabs to your taxable income. If you’re an SSF member, the first slab is 0% instead of 1%.
- If you’re a woman with salary-only income, take 10% off the tax.
- Divide the annual tax by 12. This is your monthly TDS.
- Your monthly take-home is your gross salary minus TDS, minus your SSF or PF deduction and any CIT. If your employer pays their share on top, only your share (11% for SSF, 10% for PF) comes out of your salary. If your gross includes their share, the full amount (31% for SSF, 20% for PF) comes out.
Who Pays Income Tax in Nepal?
- Salaried employees. Your employer deducts tax every month (TDS) and pays it to the Inland Revenue Department for you.
- Business owners and the self-employed. You file a yearly return and pay tax on your net business income.
- Freelancers earning foreign currency. Income from exporting services, like software or consulting work, is taxed at a flat 5%.
- Non-residents. Generally, only income earned in Nepal is taxed in Nepal.
Nepal’s fiscal year runs from Shrawan 1 to the end of Ashadh. To see exactly which English dates that covers, use my Nepali date converter. It shows the fiscal year for any date.
Sources
The rates and limits on this page were checked against these sources:
- The Inland Revenue Department’s published tax rates for natural persons, FY 2083/84
- The Finance Act 2083, authenticated on 14 July 2026, as summarised by the Institute of Chartered Accountants of Nepal and by law firms
- Reporting on the Finance Bill’s passage and later revisions, including the new school-fee deduction
Tax rules can change mid-year. If something doesn’t match your payslip, check with your employer’s payroll team or the Inland Revenue Department. And if you spot something out of date here, let me know and I’ll fix it.
While you are here —
This tool is part of a free set of Nepal-specific tools built by Bimal Raj Paudel, a growth and digital strategist based in Kathmandu. No login, no app, no cost.
If you’re curious how your pay compares, see the Nepal digital marketing salary benchmark.
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- Explore Digital Marketing Services for Nepal
- Go-to-Market Strategy for Nepali Startups
- Contact Bimal for Consulting
Frequently Asked Questions
What are the income tax slabs in Nepal for FY 2083/84?
For FY 2083/84 the slabs are: 1% on income up to NPR 10 lakh, 10% on NPR 10 to 15 lakh, 20% on NPR 15 to 25 lakh, 27% on NPR 25 to 40 lakh, and 29% on income above NPR 40 lakh. The same slabs apply to married and single taxpayers. They apply from Shrawan 1, 2083 (17 July 2026).
Is income up to Rs 10 lakh tax-free in Nepal?
Not quite. Income up to NPR 10 lakh is taxed at 1%, which is the Social Security Tax. So on NPR 10 lakh you pay NPR 10,000. The exception is if you contribute to the Social Security Fund (SSF). SSF contributors do not pay this 1%, so for them the first NPR 10 lakh really is tax-free.
Does being married still change my tax in Nepal?
No. From FY 2083/84, Nepal uses one tax table for everyone. The separate, slightly lower table for married couples has been removed. Your marital status no longer changes your income tax.
How much tax will I pay on a salary of Rs 1 lakh a month?
On NPR 1 lakh a month with no deductions, your annual tax is NPR 30,000, or NPR 2,500 a month. If you contribute to SSF, it drops a lot. For example, with an SSF contribution of NPR 5,500 a month, your annual tax falls to about NPR 13,400. Use the calculator above with your own numbers.
Are SSF contributors exempt from the 1% tax?
Yes. The 1% on the first slab is the Social Security Tax, and people who contribute to the Social Security Fund do not pay it. Pension income and contribution-based pension fund members are also exempt. It is not clear that ordinary PF or CIT savers get this exemption, so the calculator only applies it when you choose SSF.
How much can I deduct for SSF, PF and CIT contributions?
SSF and PF contributions are worked out from your basic salary, not your gross. SSF is 11% from you and 20% from your employer; PF is 10% each. Your employer's share counts as your income for tax, then both shares, plus any CIT, are deductible together up to a limit: the lowest of what was contributed, NPR 5 lakh a year, or one-third of your income. The calculator applies all of this automatically. Just enter what percentage of your gross salary is basic; it starts at 60%, a common structure in Nepal.
Which insurance premiums can I deduct from my taxable income?
For FY 2083/84 you can deduct a life insurance premium up to NPR 40,000 a year, a health insurance premium up to NPR 20,000 a year, and a home insurance premium up to NPR 10,000 a year. The home insurance limit went up from NPR 5,000 this year.
What is the new school fee tax deduction in Nepal?
The Finance Act 2083 added a new deduction for parents. You can deduct 25% of the school fees you pay for your own children at schools in Nepal, up to NPR 25,000 a year. This was added to the Finance Bill after the budget speech, so some calculators do not include it yet.
Does the 10% tax rebate for women still apply?
Yes. A woman whose only income is salary gets a 10% rebate on her tax for FY 2083/84. It is taken off the tax you owe, not off your income. Choose Yes for this option in the calculator to see it applied.
How is Dashain bonus taxed in Nepal?
Festival bonus is part of your taxable income. It is added to your yearly income before tax is worked out. Your employer usually deducts more tax in the month the bonus is paid, which is why your payslip that month can look lower than expected.
What is TDS on salary?
TDS means Tax Deducted at Source. Your employer estimates your yearly tax, spreads it across the months, and deducts it from your salary before paying you. Your employer then pays it to the Inland Revenue Department for you. The TDS on your payslip is your income tax, not an extra charge.
When do the FY 2083/84 tax slabs start?
They apply from Shrawan 1, 2083, which was 17 July 2026. The budget was presented on Jestha 15, 2083 (29 May 2026). Parliament passed the Finance Act, it was authenticated on 14 July 2026, and the Inland Revenue Department published the rates on Shrawan 22, 2083.
How is freelance income in foreign currency taxed in Nepal?
Individuals who earn foreign currency by exporting services, such as software or consulting work, pay a flat 5% tax on that income. This is separate from the salary slabs. The calculator above covers salary income only.
Do I need to file an income tax return if my employer deducts TDS?
If your only income is salary and your employer deducts and pays your TDS correctly, you usually do not need to file a separate return. If you have other income, such as rent, business or investments, or you want a refund of extra TDS, you will need to file. Check with the Inland Revenue Department or a tax professional for your situation.