Nepal Income Tax Calculator
The Nepal Income Tax Calculator helps individuals estimate their annual income tax using the latest FY 2083/84 Finance Act and Inland Revenue Department (IRD) tax rules. Calculate tax on salary income, business income, professional earnings, freelance work, rental income and other taxable income after applying eligible deductions, SSF contributions and progressive tax slabs.
Data Source & Accuracy
This calculator is based on Nepal's Finance Act 2083/84, the latest Inland Revenue Department (IRD) income tax provisions, and the Government of Nepal Budget 2083/84. Tax calculations are updated whenever official tax rates or deduction rules change.
Income Types Supported
This calculator supports personal income earned from multiple sources under Nepal's Income Tax Act.
| Income Type | Supported |
|---|---|
| Salary Income | Yes |
| Business Income | Yes |
| Professional Income | Yes |
| Freelance Income | Yes |
| Rental Income | Yes |
| Mixed Income | Yes |
Resident vs Non-Resident Taxation
Resident individuals are generally taxed on their worldwide income under Nepal's Income Tax Act. Non-resident individuals are generally taxed only on income sourced within Nepal.
This calculator is primarily intended for resident individual taxpayers calculating their annual personal income tax liability under the Finance Act 2083.
Nepal Income Tax Slabs (FY 2083/84)
The FY 2083/84 Finance Act uses a single unified progressive structure for all resident individuals. The highest personal income tax rate is 29%.
| Annual Taxable Income | Tax Rate |
|---|---|
| Up to Rs. 10,00,000 | 1%* |
| Rs. 10,00,001 to Rs. 15,00,000 | 10% |
| Rs. 15,00,001 to Rs. 25,00,000 | 20% |
| Rs. 25,00,001 to Rs. 40,00,000 | 27% |
| Above Rs. 40,00,000 | 29% |
*The first slab represents Social Security Tax. Eligible SSF contributors may qualify for relief.
Female Tax Rebate
Female taxpayers may receive a 10% rebate on their final income tax liability where applicable under Nepal's prevailing tax provisions. Selecting the Female option within the calculator automatically applies the rebate during tax computation.
Are Allowances Taxable?
Most employment allowances and taxable benefits form part of assessable income unless specifically exempt under Nepal's Income Tax Act.
Examples include:
- Housing allowance
- Transport allowance
- Special allowance
- Bonus
- Commission
- Incentive payments
These should generally be included when estimating annual taxable income.
Business, Freelance & Rental Income
Business Income
Individuals earning income from sole proprietorships or other business activities may use this calculator to estimate personal income tax after allowable deductions.
Freelance & Professional Income
Freelancers, consultants, software developers, designers, digital marketers, lawyers, doctors and other professionals may estimate their annual income tax using this calculator. Income earned from multiple clients can be combined when calculating annual taxable income.
Rental Income
Rental income received from residential or commercial properties may also form part of taxable income under Nepal's Income Tax Act. Users can include rental earnings within the calculator when estimating total annual taxable income.
How Income Tax Is Calculated in Nepal
Nepal follows a progressive income tax system. It is also important to file your taxes within the specified timeframe to avoid penalties. You can use our tax date duration calculator to check exact income tax deadlines. The general calculation process works as follows:
Income Tax Deductions Allowed
The following personal deductions are permitted under the Finance Act 2083. These reduce your taxable income.
| Deduction | Maximum Allowed |
|---|---|
| Retirement Fund (SSF / EPF / CIT) | Lower of 1/3 of gross income or Rs. 5,00,000 |
| Life Insurance | Rs. 40,000 |
| Medical Insurance | Rs. 20,000 |
| Building Insurance | Rs. 10,000 |
| Education Deduction | 25% of tuition, up to Rs. 25,000 |
| Donation to Approved Institutions | Up to Rs. 3,00,000 |
| CSR (Corporate Social Responsibility) | Up to 1% of taxable income |
Example Income Tax Calculations
The following examples illustrate how the FY 2083/84 progressive tax slabs apply for different types of income. These are pre-deduction estimates.
Salary Income Example
Business Income Example
Freelancer Example
Rental Income Example
Mixed Income Example
Frequently Asked Questions
What is the income tax on Rs. 50,000 monthly salary in Nepal?
Income tax depends on annual taxable income, retirement contributions, insurance deductions and other eligible deductions. Use the calculator to estimate your exact tax liability.
How much tax do I pay on Rs. 1 lakh monthly salary?
Tax is calculated progressively using Nepal's FY 2083/84 tax slabs. The calculator automatically applies each slab to estimate annual tax and monthly TDS.
Can freelancers use this calculator?
Yes. Freelancers, consultants and self-employed professionals can estimate their annual personal income tax using this calculator.
Can business owners use this calculator?
Yes. Individual business income may be entered when estimating annual personal income tax.
Can I get a tax refund in Nepal?
Tax refunds may be available where excess tax has been paid or where adjustments are permitted under Inland Revenue Department procedures.
How is income tax calculated in Nepal?
Income tax in Nepal is calculated by first determining your annual taxable income after all eligible deductions. The FY 2083/84 progressive tax slabs (1%, 10%, 20%, 27%, 29%) are then applied to each portion of taxable income separately to determine the total annual tax liability.
What is Monthly TDS in Nepal?
Tax Deducted at Source (TDS) is the estimated monthly income tax deducted by employers before salary is paid. It is calculated by projecting annual taxable income, applying FY 2083/84 tax slabs and dividing equally across 12 months.
What deductions reduce taxable income?
Eligible deductions include SSF, EPF, CIT (combined retirement cap: Rs. 5 lakh), Life Insurance (Rs. 40,000), Medical Insurance (Rs. 20,000), Building Insurance (Rs. 10,000), Education (Rs. 25,000), Donation (Rs. 3 lakh) and CSR (1% of taxable income) — all subject to the Finance Act 2083 limits.
Is this calculator updated for the latest Finance Act?
Yes. The calculator follows Finance Act 2083 and Budget 2083/84, including revised tax slabs, updated deduction limits and all personal income tax rule changes published at the time of this update.
Does this calculator include the female tax rebate?
Yes. Female taxpayers receive a 10% rebate on their final income tax liability. This is automatically applied when you select the female option in the Tax Settings section of the calculator.
Related Calculators
Official Resources
All tax rules referenced in this calculator are sourced from the following official Nepal Government publications:
- Inland Revenue Department — Official Nepal tax authority
- Ministry of Finance Nepal — Budget and Finance Act publications
- Finance Act 2083 — Full text of the current Finance Act
- Social Security Fund Nepal — SSF contribution and benefit rules
Last Updated
- Date: July 2026
- Law: Finance Act 2083
- Budget: Budget 2083/84
- Reviewed by: NepaCalc Finance Team
Page Information
- Version: FY 2083/84
- Jurisdiction: Nepal
- Authority: Inland Revenue Department
- Category: Finance Calculator