Nepal Salary Tax Calculator — FY 2083/84
Salary Tax Calculator — FY 2083/84 (2026/27)
Basic salary plus allowances, before any deductions.
SSF, EPF, CIT, or approved retirement fund contributions (employee + employer).
Deductible up to NPR 40,000 per year.
Deductible up to NPR 20,000 per year.
Owner-occupied home insurance, deductible up to NPR 5,000 per year.
Estimates based on FY 2083/84 (2026/27) employment income slabs. Tax rates change with each Finance Act, and individual circumstances vary — confirm your exact liability with the IRD or a licensed tax professional.
How salary tax works in Nepal (FY 2083/84)
Employment income in Nepal is taxed on a progressive slab system under the Income Tax Act 2058, with rates and thresholds revised by each year's Finance Act. Employers withhold the tax from salary every month (Section 87 withholding) and deposit it with the Inland Revenue Department.
The Finance Act for FY 2083/84 overhauled the structure: the separate schedules for single and married filers were merged into one uniform schedule for all resident natural persons, the first band (the 1% Social Security Tax) was expanded to NPR 1,000,000, and the top marginal rate fell from 39% to 29%. Employees enrolled in the Social Security Fund (SSF) are exempt from the 1% on the entire first slab.
| Annual taxable income (NPR) | Rate | Notes |
|---|---|---|
| Up to 1,000,000 | 1% | Social Security Tax — waived entirely if SSF-enrolled |
| 1,000,001 – 1,500,000 | 10% | On the next 500,000 |
| 1,500,001 – 2,500,000 | 20% | On the next 1,000,000 |
| 2,500,001 – 4,000,000 | 27% | On the next 1,500,000 |
| Above 4,000,000 | 29% | On the balance above 4,000,000 |
Deductions that reduce your taxable income
- Retirement contributions — SSF, EPF, CIT, and approved retirement funds combined, deductible up to one-third of gross income or NPR 500,000, whichever is lower
- Life insurance premiums — deductible up to NPR 40,000 per year
- Health insurance premiums — deductible up to NPR 20,000 per year
- Owner-occupied residential house insurance — deductible up to NPR 5,000 per year
- Individual female taxpayers with only employment income receive a 10% rebate on the computed tax
A worked example
Annual taxable income of NPR 1,800,000 with SSF enrollment: the first NPR 1,000,000 is tax-free (the 1% SST is waived for SSF members), the next NPR 500,000 is taxed at 10% (NPR 50,000), and the remaining NPR 300,000 at 20% (NPR 60,000) — a total of NPR 110,000 for the year, or about NPR 9,167 per month. Enter the same numbers in the calculator above to see the full breakdown.
What employers must do
Employers are responsible for computing each employee's tax, withholding it from every salary payment, depositing it within 25 days of the end of the Nepali month, and filing the e-TDS return on the IRD portal. Getting a slab or deduction wrong for one employee repeats twelve times a year — payroll errors are among the most common findings in the audits we perform.
Rolacon runs payroll and employee tax for businesses across Nepal: salary sheets, SSF contributions, withholding, deposits, and e-TDS filings, all handled. If the calculator above raised questions about your payroll, that's the service that answers them.
Running payroll for a team?
We handle salary sheets, SSF, withholding, and e-TDS filings for employers across Nepal — so every employee’s tax is right, every month.
Payroll & accounting servicesFrequently asked questions
Is this calculator updated for the current fiscal year?
The calculator uses the FY 2083/84 (2026/27) employment income slabs and deduction caps. Rates are revised by each Finance Act, and we update the data when they change — the fiscal year in use is always shown on the calculator itself.
Why is there no single/married option anymore?
From FY 2083/84, the Finance Act merged the separate single and married-couple schedules into one uniform slab schedule for all resident natural persons. Everyone now uses the same bands, starting with the expanded NPR 1,000,000 first slab — so the old couple election no longer affects salary tax.
What is the 1% Social Security Tax (SST)?
The first income slab — now the first NPR 1,000,000 — is charged at 1% as a social security tax rather than normal income tax. Employees who are enrolled in and contributing to the Social Security Fund (SSF) are exempt from this 1% entirely — one reason SSF enrollment often pays for itself.
What changed in FY 2083/84 compared to last year?
Three big things: the single and married schedules were unified into one; the 1% first band expanded from NPR 500,000/600,000 to NPR 1,000,000; and the top marginal rate dropped from 39% to 29%, with new 27% and 29% bands above NPR 2,500,000. Most salaried taxpayers pay noticeably less than under the FY 2082/83 slabs.
I freelance for foreign clients — do these slabs apply to me?
Often not. Foreign currency received through banking channels for exported services (software, remote freelancing, and similar) with a PAN remains eligible for a 5% final withholding on receipts below NPR 4,000,000 — instead of the normal slabs. Whether that treatment applies to your setup depends on the facts; we advise on the correct position and documentation.
Are bonuses and allowances taxed the same as salary?
Broadly yes — most cash allowances, bonuses, and benefits form part of taxable employment income, though some benefits are valued under specific rules. The calculator works on your total gross remuneration; for unusual benefit structures, ask us for a precise computation.
My employer deducts a different amount. Who is right?
Differences usually come from deduction treatment (retirement fund contributions, insurance premiums) or the single/couple election. Ask your employer for the tax computation sheet — or send it to us and we'll check it. Employers are liable for under-withholding, so most are happy to have it verified.
Want your payroll and taxes handled properly? Talk to us.