Nepal tools · Bikram Bhujel
Nepal salary tax calculator, FY 2083/84
Estimate the income tax on your salary for fiscal year 2083/84 (2026/27). It uses the rates and deduction limits published by the Inland Revenue Department and shows the tax band by band. A free tool by Bikram Bhujel.
Estimated income tax
Rs. 0per year
Enter your monthly salary to see the tax.
| Step | Amount (Rs.) | Tax (Rs.) |
|---|
An estimate for a resident person with employment income. Rates last checked against the Inland Revenue Department notice in October 2026.
Tax rates
Income tax slabs in Nepal for FY 2083/84
These are the rates for a resident natural person under the Income Tax Act, 2058 for income year 2083/84. The single and couple columns of the official table are the same this year.
| Taxable income in the year | Rate | Most tax in this band (Rs.) |
|---|---|---|
| Up to Rs. 10,00,000 | 1% | 10,000 |
| Rs. 10,00,001 to 15,00,000 | 10% | 50,000 |
| Rs. 15,00,001 to 25,00,000 | 20% | 2,00,000 |
| Rs. 25,00,001 to 40,00,000 | 27% | 4,05,000 |
| Above Rs. 40,00,000 | 29% | no limit |
Example from the department's own table: a taxable income of Rs. 60,00,000 pays Rs. 12,45,000. The 1% in the first band does not apply to people who contribute to the Social Security Fund or a pension fund, to pension income, or to sole proprietorships.
Deductions
What you can take off before tax
| Item | Limit for FY 2083/84 |
|---|---|
| Contribution to an approved retirement fund (PF, CIT, SSF) | Rs. 5,00,000 or one third of assessable income, whichever is lower |
| Life insurance premium | The premium paid or Rs. 40,000, whichever is lower |
| Health insurance premium | The premium paid or Rs. 20,000, whichever is lower |
| Insurance of a private building you own | The premium paid or Rs. 10,000, whichever is lower |
| Fees paid for your children's education | 25% of the fees paid or Rs. 25,000, whichever is lower |
| Remote area allowance | Rs. 50,000 (class A), 40,000 (B), 30,000 (C), 20,000 (D), 10,000 (E) |
| Woman with remuneration income only | 10% off the tax payable |
| Approved medical expenses | Tax credit of 15% of the cost or Rs. 750, whichever is lower |
Source: Inland Revenue Department, tax rate for natural persons for FY 2083/84 (published 22 Shrawan 2083). The calculator does not cover the extra relief for pension income or for persons with a disability, the foreign allowance of diplomatic staff, or business, rental and investment income.
How to use
Work out your salary tax
- Enter your monthly salary before tax and how many months of salary you receive in a year.
- Add any other yearly income from your job, such as a bonus and your employer's contribution to the Provident Fund or SSF.
- Enter what goes into retirement funds in the year and tick the box if you are in the Social Security Fund or a pension fund.
- Fill in any insurance premiums, children's fees and medical expenses. The calculator applies each legal limit and shows the tax for the year and per month.
Common questions
Questions about salary tax in Nepal
What are the income tax rates in Nepal for FY 2083/84?
For a resident person the rates are 1% on taxable income up to Rs. 10 lakh, 10% from 10 to 15 lakh, 20% from 15 to 25 lakh, 27% from 25 to 40 lakh, and 29% above 40 lakh. The 29% is the 27% rate plus an additional 2 percentage points.
Is the tax different for a single person and a married couple this year?
No. The Inland Revenue Department table for FY 2083/84 shows the same income bands and rates in the single and couple columns.
Who does not pay the 1% tax on the first Rs. 10 lakh?
The 1% in the first band does not apply to a person who contributes to the contribution-based Social Security Fund or to a pension fund, to pension income, or to a taxpayer registered as a sole proprietorship. Tick the box in the calculator if this applies to you.
How much can I deduct for the Provident Fund, CIT and SSF?
Contributions to an approved retirement fund can be deducted up to Rs. 5 lakh or one third of your assessable income, whichever is lower. The calculator applies that limit for you.
Which insurance premiums reduce my tax?
The yearly premium on life insurance up to Rs. 40,000, on health insurance up to Rs. 20,000, and on insurance of a private building you own up to Rs. 10,000.
Do women pay less salary tax?
A resident woman whose only income is remuneration gets 10% off the tax she would otherwise pay. Tick the box and the calculator takes it off.
How is my monthly tax worked out?
The calculator works out the tax for the whole year and divides it by twelve. Your employer deducts tax from each salary in the same way, but the amount in a given month can differ if your pay changes during the year.
Is this an official tax calculation?
No. It is an estimate based on the rates and limits published by the Inland Revenue Department for FY 2083/84. For your tax return, or if you have business, rental or investment income, check with your employer's accounts section or a tax professional.
Made by Bikram Bhujel, infrastructure and systems engineer in Nepal. This is an estimate, not tax advice. More Nepal tools: NEPSE calculator, Nepali number to words, Nepali date converter, all tools.