Nepali Salary Tax Calculator

Calculate your exact monthly and annual income tax in Nepal — updated for both FY 2082/83 (current) and the incoming FY 2083/84 slabs. Just enter your salary, bonus, and deductions below to see your take-home pay.

[Calculator tool embeds here — inputs: monthly salary, festival bonus, SSF/EPF/CIT contribution, life insurance, health insurance. Output: slab-by-slab breakdown, annual tax, monthly tax, net take-home pay.]

How Nepal’s Salary Tax Slabs Work

Nepal taxes salaried income progressively — the more you earn, the higher the rate on each additional slab. Two sets of slabs matter right now, because the government just approved new rates that take effect this year.

FY 2082/83 Tax Slabs (in force until mid-July 2026)

These are the rates your current payroll is running on:

Married couples get a slightly wider first slab — Rs 6,00,000 instead of Rs 5,00,000 — before the higher rates kick in.

FY 2083/84 Tax Slabs (effective Shrawan 1, 2083 — mid-July 2026)

The new budget significantly eases the burden on salaried employees. Two big changes: the tax-free threshold doubles, and the top rate drops.

One more important shift: the married vs. unmarried distinction is gone. Everyone now falls under the same slab structure, regardless of marital status.

How to Calculate Your Salary Tax — Step by Step

1. Work out your total annual income. Monthly salary × 12, plus any Dashain or festival bonus.
2. Subtract your eligible deductions.
   • SSF, EPF, and CIT contributions combined — capped at Rs 5,00,000 or one-third of your income, whichever is lower
   • Life insurance premiums — up to Rs 40,000
   • Health insurance premiums — up to Rs 20,000
3. Apply the progressive slab rates to what’s left — your net assessable income.
4. Check your SSF status. If you contribute to the Social Security Fund, the 1% Social Security Tax on the first slab is waived entirely, making that portion effectively tax-free.

Worked Example

Take someone earning Rs 50,000 a month (Rs 6,00,000 a year) with no other deductions, under FY 2082/83 rates:

• First Rs 5,00,000 taxed at 1% → Rs 5,000
• Remaining Rs 1,00,000 taxed at 10% → Rs 10,000
• Total annual tax: Rs 15,000 (about Rs 1,250/month)

If that same person contributes to SSF, the 1% on the first slab is waived, dropping the annual tax to Rs 10,000 — a real difference of Rs 5,000 a year for one checkbox on the form.

Deductions You Can Claim

Most salaried employees leave money on the table simply because they don’t know what’s deductible:

• SSF / EPF / CIT contributions — your single biggest lever, capped at Rs 5,00,000 or 1/3 of income
• Life insurance premiums — up to Rs 40,000/year
• Health insurance premiums — up to Rs 20,000/year
• Remote area allowance — an additional Rs 50,000 deduction if you work in a designated remote area, often overlooked

Frequently Asked Questions

What is the current tax slab in Nepal for FY 2082/83? Six progressive brackets from 1% up to 39%, with the first Rs 5,00,000 (Rs 6,00,000 for married couples) taxed at just 1%.

What changed in the FY 2083/84 budget? The tax-free threshold doubled to Rs 10,00,000, the top rate dropped from 39% to 29%, and the married/unmarried distinction was removed — one slab structure now applies to everyone.

Is SSF contribution tax-free? Not entirely tax-free, but SSF contributions are deductible from taxable income, and they also waive the 1% Social Security Tax on your first income slab.

How is TDS different from annual tax filing? TDS (Tax Deducted at Source) is the monthly amount your employer withholds and remits to the IRD on your behalf. Your annual filing reconciles that against your actual total income and deductions for the year.

Do freelancers use the same slabs as salaried employees? Freelance and business income follows a different assessment process under the Income Tax Act 2058, though the same slab rates generally apply. If your situation is more complex than a standard salary, it’s worth checking with a tax professional.