Finance & Tax

Nepal Income Tax Calculator

नेपाल आयकर क्याल्कुलेटर

Estimate personal income tax in Nepal on your total annual income, with the current slabs, deductions and rebates.

Estimate your personal income tax in Nepal. Enter your total annual income and any deductions, pick the fiscal year, and the calculator applies the current progressive slabs to show your tax with a full breakdown.

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All income for the year — salary, business, rent, other.
SSF / EPF / CIT total, capped at Rs 5,00,000 or ⅓ of income.
Estimated annual income tax—
Total annual income
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Total deductions
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Taxable income
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Slab tax
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Social Security Tax waived
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Female rebate
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Annual income tax
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Average monthly tax
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Marginal rate
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Effective tax rate
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Slab-by-slab tax breakdown

SlabRateIncome in bandTax
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    About the Nepal income tax calculator

    This calculator estimates personal income tax in Nepal on your total annual income — salary, business profits, rent and other sources combined. It applies the progressive slab rates set by the annual Finance Act, subtracts the deductions you are allowed, and shows the resulting tax with a slab-by-slab breakdown. It is useful for anyone estimating their yearly tax bill, checking a projection, or working out how a change in income or deductions affects what they owe.

    How income tax is calculated

    Tax in Nepal is charged progressively: the first slice of taxable income is taxed at the lowest rate, the next slice at a higher rate, and so on up the scale. Only the portion of income that falls inside each band is charged at that band’s rate, which is why the marginal rate (the rate on your last rupee) is higher than the effective rate (total tax as a share of income). The calculator lists each band so the figure can be checked by hand.

    Deductions you can claim

    Retirement contributions through the Social Security Fund, Employees Provident Fund or a Citizen Investment Trust scheme are deductible up to the lower of Rs 5,00,000 or one-third of income. Life-insurance premiums are deductible up to Rs 40,000, health insurance up to Rs 20,000, and building insurance within its own annual limit. Deductions reduce taxable income before the slabs are applied.

    Social Security Tax and the female rebate

    Where the first slab carries a 1% charge, that is the Social Security Tax on employment-style income. It is waived when you contribute to the SSF or an approved retirement fund. A resident woman may also claim a 10% rebate on the tax. Both options are toggled in the calculator.

    The result is an estimate for planning. Your actual assessment depends on your income sources and the IRD’s rules — confirm before relying on a figure for filing.

    Frequently asked questions

    How is income tax calculated in Nepal?
    Your total annual income is reduced by allowed deductions to reach taxable income. That taxable income is then taxed progressively — each band of income is charged at its own rate, from the lowest to the highest — and the band taxes are added together.
    What are the income tax slabs for FY 2083/84?
    For individuals and couples the unified schedule is 1% on the first Rs 10 lakh, 10% up to Rs 15 lakh, 20% up to Rs 25 lakh, 27% up to Rs 40 lakh and 29% above Rs 40 lakh. The 1% first-band charge is the Social Security Tax.
    What is the difference between marginal and effective tax rate?
    The marginal rate is the rate charged on your last rupee of income (the top band you reach). The effective rate is your total tax divided by your total income, so it is always lower than the marginal rate in a progressive system.
    How much can I deduct for retirement and insurance?
    Retirement contributions are deductible up to the lower of Rs 5,00,000 or one-third of income, life-insurance premiums up to Rs 40,000 and health insurance up to Rs 20,000 (FY 2083/84). Building insurance is deductible within its own set limit.
    Is there a separate tax schedule for couples?
    From FY 2083/84 individuals and couples share a single unified schedule. A separate, slightly higher couple schedule applied in FY 2082/83, so the couple option only appears for that year.
    Who can claim the 10% female rebate?
    A resident woman assessee may claim a 10% rebate on her tax, subject to the conditions in the Finance Act. Tick the female option in the calculator to apply it to the estimate.

    Sources & further reading

    1. Inland Revenue Department (IRD), Nepalird.gov.np
    2. Ministry of Finance — annual Finance Actmof.gov.np