What This Salary Calculator Covers
This Salary Calculator is designed exclusively for employment income in Nepal. It calculates salary tax, payroll deductions, Social Security Fund (SSF), Citizen Investment Trust (CIT), Employee Provident Fund (EPF), employer contribution and take-home salary using the latest FY 2083/84 rules. It should not be used for business income, professional income, rental income, capital gains or other taxable income sources.
Salary Calculator vs Income Tax Calculator
Salary Calculator
- • Salary only
- • Payroll
- • Employee deductions
- • Employer cost
- • Take-home salary
- • Monthly payroll
Income Tax Calculator
- • Business income
- • Rental income
- • Capital gains
- • Professional income
- • Multiple income sources
- • Complete annual taxation
If your only income comes from employment, use this Salary Calculator. If you have additional taxable income sources, we highly recommend using the Nepal Income Tax Calculator to accurately assess your overall liability across all income streams.
Nepal Salary Tax Calculator (FY 2083/84)
Calculate your Nepal salary tax instantly using the latest FY 2083/84 income tax rates announced by the Ministry of Finance. Enter your monthly salary to receive an accurate breakdown of Nepal Income Tax, Social Security Fund (SSF), Citizen Investment Trust (CIT), employer contribution, take-home salary and total employer cost.
Quick Summary
Nepal uses a progressive income tax system for salaried individuals. The FY 2083/84 tax rates range from 1% to 29%, depending on annual taxable income after eligible deductions such as employee SSF and CIT contributions. Monthly income tax is always derived from an annual calculation divided by 12.
Salary Tax Breakdown
Gross Salary
Monthly salary before any deductions, starting point for all tax calculations.
Taxable Salary
Salary remaining after eligible deductions such as SSF and CIT contributions.
Income Tax
Tax calculated using the FY 2083/84 progressive slabs from 1% to 29%.
Take-Home Salary
Final salary received after income tax and all eligible deductions.
What is Nepal Salary Tax?
Salary tax in Nepal is the income tax levied on remuneration received by salaried individuals. It is governed under the Income Tax Act of Nepal and administered by the Inland Revenue Department (IRD), a process called Tax Deducted at Source (TDS).
Nepal uses a progressive income tax system, meaning different portions of annual income are taxed at different rates. Only the portion falling within a slab is taxed at that slab rate, not the entire salary. For FY 2083/84, the Government of Nepal revised the structure with updated slabs, a higher threshold, and new approved deductions.
Who Should Use This Calculator?
This tool is specifically built for calculating employment-related tax liabilities for:
Nepal Income Tax Slabs (FY 2083/84)
The Government of Nepal revised the personal income tax slabs for FY 2083/84. The new structure raises the first slab threshold to Rs. 10,00,000 and reduces the maximum rate to 29%:
| Annual Taxable Income | Tax Rate | Max Tax on Slab |
|---|---|---|
| Up to Rs. 10,00,000 | 1% | Rs. 10,000 |
| Rs. 10,00,001 – Rs. 15,00,000 | 10% | Rs. 50,000 |
| Rs. 15,00,001 – Rs. 25,00,000 | 20% | Rs. 2,00,000 |
| Rs. 25,00,001 – Rs. 40,00,000 | 27% | Rs. 4,05,000 |
| Above Rs. 40,00,000 | 29% (27% + 2% surcharge) | On all income above 40L |
How Salary Tax is Calculated in Nepal
Salary tax must always be calculated on an annual basis first, then divided by 12 for monthly TDS. Applying monthly slabs directly produces incorrect results. Ensure your employer submits the TDS within the required filing periods; you can verify timelines using our tax date duration calculator. The complete calculation flow:
Social Security Fund (SSF)
The SSF is a mandatory retirement scheme for formal sector employees. You can verify detailed contributions using our SSF Calculator. Contributions are split between employee and employer:
11%
Employee Contribution
Deducted from gross salary · Reduces taxable income
20%
Employer Contribution
Paid by employer · Increases CTC · Does NOT reduce employee taxable income
31%
Total SSF
Combined contribution deposited to the Social Security Fund
SSF contributors benefit from a waiver of the 1% social security tax on their first Rs. 10,00,000 of income. The annual SSF deduction is capped at one-third of annual income or Rs. 5,00,000, whichever is lower. See our Provident Fund Calculator for PF-based calculations.
Citizen Investment Trust (CIT)
CIT is a government-backed voluntary retirement savings scheme. Contributions reduce your taxable income, lowering overall income tax:
Purpose: Long-term retirement savings with government-guaranteed returns.
Tax Treatment: CIT contributions are deductible from annual taxable income under the retirement contribution provision.
Deduction Cap: Capped at one-third of annual salary or Rs. 5,00,000, whichever is lower (combined with SSF).
Data Sources & References
All calculations in this Nepal Salary Tax Calculator are based on official Government of Nepal sources:
- Government of Nepal Budget FY 2083/84
- Finance Act 2083 (Nepal)
- Income Tax Act of Nepal (as amended)
- Inland Revenue Department (IRD), Official tax brackets and fiscal publications
- Social Security Fund (SSF), Employee and employer contribution guidelines
Updated: FY2083/84
Last Updated: July 2026