Nepal Income Tax Calculator

Nepal's personal income tax is administered by the Inland Revenue Department (IRD) under the Income Tax Act 2058 (2001). The tax is computed on an individual's total annual income minus approved deductions. Every salaried employee in Nepal should understand their tax liability — and many employers deduct more or less than they should.

FY 2082/83 tax slabs (individual)

| Income Bracket | Tax Rate | |---------------|----------| | Up to Rs. 4,00,000 | 0% (exemption) | | Next Rs. 1,00,000 (4–5 lakh) | 1% | | Next Rs. 2,00,000 (5–7 lakh) | 10% | | Next Rs. 3,00,000 (7–10 lakh) | 20% | | Next Rs. 10,00,000 (10–20 lakh) | 30% | | Above Rs. 20,00,000 | 36% |

For married individuals, the basic exemption is Rs. 5,00,000 (vs Rs. 4,00,000 for single). There is also a 10% surcharge on tax payable above a threshold — effectively making the highest rate 36%.

Key deductions

- **SSF (Social Security Fund)**: Employee contributes 11% of basic salary, deductible from taxable income - **CIT (Citizen Investment Trust)**: Up to 10% of basic salary, deductible up to Rs. 3,00,000 - **Remote worker deduction**: Rs. 2,00,000 additional deduction for remote workers (introduced FY 2080/81) - **Life insurance premium**: Up to Rs. 40,000 deductible - **Retirement fund**: Contributions to approved retirement funds are deductible

TDS and advance tax

Employers deduct tax at source (TDS) from monthly salaries. If your total annual income (including freelance or other sources) exceeds the TDS, you need to pay advance tax or a tax return is required. Advance tax installment dates: Poush end and Chaitra end.