How to use Nepal Income Tax Calculator
This Nepal income tax calculator estimates your personal income tax for individuals and couples based on your income and the fiscal year you select (2023 to FY 2082/83 — the latest, keyed as 2026). Nepal taxes resident natural persons on progressive slabs, and only the income within each slab is taxed at that slab’s rate. For an individual the first NPR 500,000 carries a 1% Social Security Tax, then 10%, 20% and 30% bands apply, with a 36% top rate above NPR 2,000,000 (couples get a higher NPR 600,000 first band). The calculator also models the 10% employee EPF/PF contribution and shows your effective rate, marginal rate, a slab breakdown and your take-home in rupees.
- Select your fiscal year (up to FY 2082/83) from the dropdown — the latest carries forward the FY 2081/82 scale.
- Enter your annual employment income in Nepalese rupees (NPR).
- Choose your filing status — Individual (Single) or Married (Couple).
- Click Calculate to see your income tax, effective rate and marginal rate.
- Review the slab breakdown and your take-home after the 10% EPF/PF contribution.
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How Nepal’s slab scale works
Nepal taxes resident natural persons on progressive slabs, and only the income within each slab is taxed at that slab’s rate. For an individual in FY 2082/83 the first NPR 500,000 is taxed at 1% (the Social Security Tax), the next NPR 200,000 at 10%, the next NPR 300,000 at 20%, the next NPR 1,000,000 at 30% and amounts from NPR 2,000,000 to NPR 5,000,000 at 36%. A married couple can be assessed jointly, which lifts the 1% band to NPR 600,000 and slightly widens the lower slabs.
| Annual income (NPR) | Rate | Notes |
|---|---|---|
| 0 – 500,000 | 1% | Social Security Tax (exempt for SSF contributors) |
| 500,000 – 700,000 | 10% | Next NPR 200,000 |
| 700,000 – 1,000,000 | 20% | Next NPR 300,000 |
| 1,000,000 – 2,000,000 | 30% | Next NPR 1,000,000 |
| 2,000,000 – 5,000,000 | 36% | Next NPR 3,000,000 |
| Over 5,000,000 | 36% + 20% surcharge | ≈ 39% effective on this band |
Social Security Tax, EPF and the surcharge
The first slab is taxed at just 1%, called the Social Security Tax (SST); employees whose employer is enrolled in the Social Security Fund (SSF) are generally exempt from it. Employees contribute 10% of basic salary to the Provident Fund (EPF/PF), which the calculator subtracts in your take-home figure but not from the tax base; where the SSF applies the employee instead contributes 11%. Income above NPR 5,000,000 carries a 20% surcharge on the top band (about a 39% effective rate), which is documented but not auto-applied.
Effective versus marginal tax rate
Your effective tax rate is your total income tax divided by total income — your true average. Your marginal rate is the rate on your next rupee, set by the highest slab you reach. On NPR 1,500,000 as an individual your marginal rate is 30% but your effective rate is only about 15.7%, because the 1% SST band and the 10% and 20% slabs apply first. Choosing couple assessment can lower the bill for a married taxpayer.
Worked examples
Individual, NPR 700,000, FY 2082/83
Inputs: NPR 700,000 income
Result: NPR 25,000 tax · ~3.6% effective · 10% marginal
Individual, NPR 1,500,000, FY 2082/83
Inputs: NPR 1,500,000 income
Result: NPR 235,000 tax · ~15.7% effective · 30% marginal
Couple, NPR 2,000,000, FY 2082/83
Inputs: NPR 2,000,000 income (couple)
Result: NPR 356,000 tax · ~17.8% effective · take-home ~NPR 1,444,000 after EPF
Glossary
- Social Security Tax (SST)
- The 1% tax on the first income slab (NPR 500,000 individual / 600,000 couple); SSF contributors are exempt.
- Couple assessment
- A married taxpayer’s option to be taxed jointly, raising the 1% first band to NPR 600,000.
- EPF / PF
- The Employees’ Provident Fund — a 10% employee retirement contribution, not deducted from the tax base.
- SSF
- The Social Security Fund; where the employer is enrolled the employee pays 11% and is exempt from the 1% SST.
- High-income surcharge
- A 20% surcharge on the top band above NPR 5,000,000 (about a 39% effective rate), not auto-applied.
- Marginal tax rate
- The rate applied to your next rupee of income, set by the highest slab you reach.
Related reading
Frequently Asked Questions
Why use Nepal Income Tax Calculator?
- Applies Nepal’s IRD progressive slabs (1% SST then 10/20/30/36%) for the fiscal year you choose
- Supports both Individual and Married (Couple) assessment with the wider couple first band
- Models the 1% Social Security Tax band and notes the SSF exemption for enrolled employers
- Includes the 10% employee EPF/PF contribution in your take-home figure
- Documents the 20% high-income surcharge above NPR 5,000,000 (about a 39% effective rate)
Common use cases
- Estimate your Nepal income tax before your employer’s monthly TDS deduction
- Compare Individual versus Married (Couple) assessment to find the lower bill
- Work out how the 1% SST first band and EPF affect your take-home
- Check a payslip TDS deduction against the official IRD slab scale
- See how the 36% top band and the 20% surcharge apply to very high incomes
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