Salary Tax Calculator Nepal — FY 2083/84 New Tax Slabs (Updated)
📋 FY 2083/84 Tax Slabs
Up to NPR 10L → 1% | 10–15L → 10% | 15–25L → 20% | 25–40L → 27% | Above 40L → 29%
Note: Married and single distinction removed. Same rate applies to all.
Most salary tax calculators in Nepal are still running on the old FY 2082/83 tax slabs. This one is not.
Finance Minister Dr. Swarnim Wagle presented the FY 2083/84 budget on Jestha 15, 2083 BS (May 29, 2026) with significant changes to Nepal’s income tax structure — new slabs, new rates, and the removal of the married versus single distinction that had been part of Nepal’s tax system for years. The new slabs are effective from Shrawan 1, 2083 BS (mid-July 2026), pending formal passage of the Finance Act. If you are using any other tool right now, you are calculating your tax on outdated numbers.
This calculator is fully updated for FY 2083/84. Enter your monthly gross salary above and get your exact take-home salary, annual tax liability, and a slab-by-slab breakdown — instantly.
Nepal Salary Tax Calculator — FY 2083/84
Enter your monthly gross salary to calculate your income tax, take-home pay, and full slab breakdown.
New Income Tax Slabs Nepal — FY 2083/84 NEW
The FY 2083/84 budget announced by Finance Minister Dr. Swarnim Wagle on Jestha 15, 2083 BS (May 29, 2026) restructures Nepal’s income tax with a key change: the distinction between married and single taxpayers has been removed. One unified slab applies to all individuals regardless of marital status. These slabs are effective from Shrawan 1, 2083 BS (mid-July 2026), pending formal passage of the Finance Act.
Effective date: The FY 2083/84 tax slabs apply from Shrawan 1, 2083 BS (mid-July 2026). Until then, FY 2082/83 slabs remain in force. If your fiscal year starts before mid-July 2026, check with your employer’s payroll team on which slab applies to your current TDS deductions.
Key change for FY 2083/84: The married / single distinction is removed. The same five-slab structure applies to every individual taxpayer regardless of marital status. The first slab now covers income up to NPR 10 lakh at 1% — double the previous NPR 5 lakh threshold. This is not a full exemption: the 1% Social Security Tax still applies on this first slab, unless you are an SSF contributor.
| Annual Income Slab | Tax Rate | Tax on This Slab | Cumulative Tax |
|---|---|---|---|
| Up to NPR 10,00,000 | 1% | NPR 10,000 (max) | NPR 10,000 |
| NPR 10,00,001 to NPR 15,00,000 | 10% | NPR 50,000 (max) | NPR 60,000 |
| NPR 15,00,001 to NPR 25,00,000 | 20% | NPR 2,00,000 (max) | NPR 2,60,000 |
| NPR 25,00,001 to NPR 40,00,000 | 27% | NPR 4,05,000 (max) | NPR 6,65,000 |
| Above NPR 40,00,000 | 29% | On the amount above 40L | NPR 6,65,000 + 29% |
Note: The 1% rate on the first slab is technically the Social Security Tax (SST). SSF contributors may be exempt from this 1% — consult your employer or tax advisor for your specific situation.
Old Income Tax Slabs Nepal — FY 2082/83 OLD
For reference and comparison — here are the tax slabs that applied in FY 2082/83 (2025/26 AD). These are the slabs most online calculators in Nepal are still using. If your calculator shows a married vs single toggle and higher maximum rates like 36% or 39%, it is running on these old numbers.
FY 2082/83 — Single / Individual
| Annual Income Slab | Tax Rate |
|---|---|
| Up to NPR 5,00,000 | 1% (Social Security Tax) |
| NPR 5,00,001 to NPR 7,00,000 | 10% |
| NPR 7,00,001 to NPR 10,00,000 | 20% |
| NPR 10,00,001 to NPR 20,00,000 | 30% |
| NPR 20,00,001 to NPR 50,00,000 | 36% |
| Above NPR 50,00,000 | 39% |
FY 2082/83 — Married Couple
| Annual Income Slab | Tax Rate |
|---|---|
| Up to NPR 6,00,000 | 1% (Social Security Tax) |
| NPR 6,00,001 to NPR 8,00,000 | 10% |
| NPR 8,00,001 to NPR 11,00,000 | 20% |
| NPR 11,00,001 to NPR 20,00,000 | 30% |
| NPR 20,00,001 to NPR 50,00,000 | 36% |
| Above NPR 50,00,000 | 39% |
Note: FY 2082/83 slabs were unchanged from FY 2081/82. Female employees earning only remuneration income were eligible for a 10% rebate on calculated tax (Female Remuneration Tax Credit / FRTC).
Old vs New Tax Slab Comparison — What Changed in FY 2083/84
| Feature | FY 2082/83 (Old) | FY 2083/84 (New) |
|---|---|---|
| First slab threshold | NPR 5L (single) / NPR 6L (married) | NPR 10L (everyone) |
| First slab rate | 1% | 1% |
| Second slab | 10% on 5–7L / 6–8L | 10% on 10–15L |
| Third slab | 20% on 7–10L / 8–11L | 20% on 15–25L |
| Fourth slab | 30% on 10–20L | 27% on 25–40L |
| Fifth slab | 36% on 20–50L | 29% on above 40L |
| Sixth slab | 39% above 50L | Removed — 29% continues above 40L |
| Married vs single distinction | Yes — different first slab threshold | Removed — same slab for all |
| Maximum tax rate | 39% | 29% |
| Number of slabs | 6 | 5 |
The biggest change: The maximum income tax rate in Nepal drops from 39% to 29% under the new FY 2083/84 slabs. This is a significant reduction for high-income earners — someone earning NPR 50L annually would pay considerably less tax under the new structure. The expanded first slab threshold from NPR 5L / 6L to NPR 10L also benefits middle-income earners substantially.
About the FY 2083/84 Budget — Dr. Swarnim Wagle’s Tax Reform
Finance Minister Dr. Swarnim Wagle presented the FY 2083/84 budget on Jestha 15, 2083 BS (May 29, 2026) in a joint session of the Federal Parliament. The total budget stands at NPR 2,124.34 billion — 25.2% larger than the revised estimate for the current fiscal year. The income tax reforms were among the most discussed changes in the budget announcement.
The key philosophy behind the new tax structure:
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Simplification: Reducing from 6 slabs to 5 removes complexity and makes tax calculation easier for individuals and employers managing payroll
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Equity: Removing the married versus single distinction means the tax system no longer treats individuals differently based on marital status — a structural change that modernises Nepal’s tax framework
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Relief for middle income: Doubling the first slab threshold from NPR 5L to NPR 10L means anyone earning up to NPR 10L annually pays only 1% on their entire income — significant relief for a large portion of Nepal’s salaried workforce
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Reduced burden on high earners: Cutting the top rate from 39% to 29% is a notable reduction designed to encourage formal income declaration and reduce tax avoidance
Important note on deductions: The tax slab applies to your taxable income — not your gross salary. Deductions for SSF (Social Security Fund), EPF (Employee Provident Fund), CIT (Citizen Investment Trust), life insurance premiums, and health insurance premiums reduce your taxable income before the slab is applied. Your actual tax may be lower than the slab calculation if you have significant deductions. Consult a tax professional or your employer’s payroll team for your exact liability.
How Nepal’s Income Tax Works — A Plain Language Guide
Nepal uses a progressive income tax system. This means you do not pay the same rate on your entire income — you pay different rates on different portions of your income, based on which slab each portion falls into.
Think of it like filling buckets. Each bucket has a fixed capacity and its own tax rate. You fill the first bucket first, then the second, and so on. You only pay the higher rate on the portion of income that falls in the higher slab — not on your entire income.
Example 1 — Annual Income of NPR 12,00,000 (New FY 2083/84 Slabs)
FY 2083/84 Calculation
| Income Portion | Slab Rate | Tax |
|---|---|---|
| First NPR 10,00,000 | 1% | NPR 10,000 |
| Next NPR 2,00,000 (10L to 12L) | 10% | NPR 20,000 |
| Total Annual Tax | NPR 30,000 | |
| Monthly Tax Deduction (TDS) | NPR 2,500 per month |
Example 2 — Annual Income of NPR 12,00,000 (Old FY 2082/83 Slabs — Single)
FY 2082/83 Calculation (for comparison)
| Income Portion | Slab Rate | Tax |
|---|---|---|
| First NPR 5,00,000 | 1% | NPR 5,000 |
| Next NPR 2,00,000 (5L to 7L) | 10% | NPR 20,000 |
| Next NPR 3,00,000 (7L to 10L) | 20% | NPR 60,000 |
| Next NPR 2,00,000 (10L to 12L) | 30% | NPR 60,000 |
| Total Annual Tax | NPR 1,45,000 | |
| Monthly Tax Deduction (TDS) | NPR 12,083 per month |
At NPR 12L annual income, the new FY 2083/84 slab results in NPR 30,000 total annual tax. The old FY 2082/83 slab resulted in NPR 1,45,000 for a single individual. That is NPR 1,15,000 less tax per year — or approximately NPR 9,583 more take-home pay every month.
Example 3 — Annual Income of NPR 30,00,000 (New FY 2083/84 Slabs)
FY 2083/84 Calculation
| Income Portion | Slab Rate | Tax |
|---|---|---|
| First NPR 10,00,000 | 1% | NPR 10,000 |
| Next NPR 5,00,000 (10L to 15L) | 10% | NPR 50,000 |
| Next NPR 10,00,000 (15L to 25L) | 20% | NPR 2,00,000 |
| Next NPR 5,00,000 (25L to 30L) | 27% | NPR 1,35,000 |
| Total Annual Tax | NPR 3,95,000 | |
| Monthly Tax Deduction (TDS) | NPR 32,917 per month |
Key Tax Deductions Available in Nepal — Reduce Your Taxable Income
Before the tax slab is applied, you can deduct certain contributions and premiums from your gross income. These deductions reduce your taxable income and therefore reduce your tax liability. Here are the main deductions available to salaried individuals in Nepal:
| Deduction Type | Maximum Deductible Amount | Notes |
|---|---|---|
| SSF (Social Security Fund) contribution | Up to NPR 5,00,000 combined with EPF/CIT | Also exempts you from the 1% SST on first slab |
| EPF (Employees Provident Fund) — employee share | Up to NPR 5,00,000 combined with SSF/CIT | Your employer’s EPF contribution is not deductible for you |
| CIT (Citizen Investment Trust) contribution | Up to NPR 5,00,000 combined with SSF/EPF | Combined cap applies across all three |
| Life insurance premium | Up to NPR 40,000 per year | Policy must be in taxpayer’s name |
| Health insurance premium | Up to NPR 20,000 per year | Must be a registered health insurance policy |
Practical tip: If you are an SSF contributor, the 1% Social Security Tax on the first slab (up to NPR 10L) does not apply to you. Your effective first slab tax is 0%, not 1%. This is a meaningful difference — SSF contributors at NPR 10L annual income pay NPR 0 on the first slab versus NPR 10,000 for non-contributors.
How to Calculate Your Monthly Take-Home Salary in Nepal
Your take-home salary (also called net salary or in-hand salary) is calculated as follows:
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Start with your monthly gross salary — the figure before any deductions
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Multiply by 12 to get your annual gross income
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Subtract eligible deductions — SSF/EPF/CIT contributions, insurance premiums
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This gives your annual taxable income
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Apply the FY 2083/84 tax slabs progressively to calculate your annual tax liability
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Divide annual tax by 12 to get your monthly TDS (Tax Deducted at Source)
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Monthly take-home = Monthly gross minus TDS minus other deductions (EPF employee share, SSF contribution, etc.)
The calculator above does all of this automatically — just enter your monthly gross salary and it handles the rest.
Who Needs to Pay Income Tax in Nepal?
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Salaried employees: Tax is deducted at source (TDS) by your employer every month. You do not need to physically pay — your employer deposits it with IRD on your behalf. You may still need to file an annual return depending on your total income.
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Business owners and self-employed: File annual income tax return with IRD and pay tax based on net business income after allowable deductions.
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Freelancers earning in foreign currency: A flat 5% final withholding tax applies on foreign currency income — this is a final tax, not progressive.
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Non-Resident Nepalis (NRNs): Only Nepal-sourced income is taxable in Nepal for NRNs. Foreign income is generally not taxed in Nepal.
Frequently Asked Questions
What are the new income tax slabs in Nepal for FY 2083/84?
The FY 2083/84 tax slabs announced by Finance Minister Dr. Swarnim Wagle on Jestha 15, 2083 (May 29, 2026) are: 1% on income up to NPR 10 lakh, 10% on NPR 10–15 lakh, 20% on NPR 15–25 lakh, 27% on NPR 25–40 lakh, and 29% on income above NPR 40 lakh. Note: the 1% on the first slab is the Social Security Tax — income up to NPR 10 lakh is not fully exempt, it is taxed at 1% (SSF contributors are exempt from this 1%). The married versus single distinction has been removed — these rates apply equally to all individual taxpayers. Effective from Shrawan 1, 2083 BS (mid-July 2026), pending Finance Act passage.
What changed between FY 2082/83 and FY 2083/84 tax slabs?
Three major changes: First, the first slab threshold doubled from NPR 5 lakh (single) or 6 lakh (married) to NPR 10 lakh for everyone. Second, the maximum tax rate dropped from 39% to 29%. Third, the married versus single distinction was completely removed — one unified slab now applies to all individuals. The number of slabs also reduced from 6 to 5.
Why are most other salary tax calculators in Nepal showing different numbers?
Most calculators available online are still running on FY 2082/83 slabs — the old structure with 6 brackets, married/single distinction, and a maximum rate of 39%. The FY 2083/84 slabs introduced by Dr. Swarnim Wagle’s budget are significantly different. This calculator is updated specifically for the new FY 2083/84 structure. Always check which fiscal year your calculator is using before relying on the result.
Does the married versus single distinction still apply in FY 2083/84?
No. The FY 2083/84 budget removed the married versus single distinction entirely. Previously, married couples received a NPR 1 lakh higher threshold in the first three slabs. Under the new system, the same five-slab structure applies to every individual taxpayer regardless of marital status. This simplifies payroll calculation for employers and tax planning for employees.
What is TDS and how does it relate to income tax?
TDS stands for Tax Deducted at Source. Your employer calculates your estimated annual income tax liability at the start of the fiscal year, divides it by 12, and deducts that amount from your monthly salary before paying you. The employer then deposits this amount directly with the Inland Revenue Department (IRD) on your behalf. The TDS amount shown in your payslip is your monthly income tax payment — it is not an additional deduction on top of income tax, it is the same thing.
Are SSF contributions exempt from the 1% Social Security Tax?
Yes. If you are an SSF (Social Security Fund) contributor, you are exempt from the 1% Social Security Tax that applies to the first slab. Under the FY 2083/84 slabs, this means SSF contributors pay 0% on income up to NPR 10 lakh, while non-contributors pay 1%. The SSF contribution itself (typically 11% employee share + 20% employer share) also reduces your taxable income, further reducing your tax liability.
What is the difference between gross salary and taxable income?
Gross salary is your total salary before any deductions. Taxable income is your gross salary minus eligible deductions — SSF/EPF/CIT contributions (up to NPR 5 lakh combined), life insurance premiums (up to NPR 40,000), and health insurance premiums (up to NPR 20,000). The income tax slab is applied to your taxable income, not your gross salary. The calculator above uses gross salary as the input — for a more precise calculation that accounts for your specific deductions, consult your employer’s payroll team.
Does festival bonus count as taxable income in Nepal?
Yes. Festival bonus (Dashain bonus, Tihar bonus, etc.) is treated as taxable income and is included in your annual income for tax calculation purposes. Employers typically adjust your TDS deductions in the month the bonus is paid to account for the additional income.
Who announced the new tax slabs for FY 2083/84?
The new income tax slabs for FY 2083/84 were announced by Finance Minister Dr. Swarnim Wagle on Jestha 15, 2083 BS (May 29, 2026) during the annual budget presentation at a joint session of the Federal Parliament. The new structure simplifies Nepal’s income tax from 6 slabs to 5, removes the married versus single distinction, raises the first slab threshold to NPR 10 lakh at 1% (not a full exemption — the 1% SST still applies unless you are an SSF contributor), and reduces the maximum rate from 39% to 29%. The new slabs are effective from Shrawan 1, 2083 BS (mid-July 2026), pending formal passage of the Finance Act.
Do I need to file an income tax return if my employer deducts TDS?
If your only income is salary and your employer correctly deducts and deposits TDS, you may not be required to file an annual income tax return with IRD. However, if you have income from other sources (rent, business, investments), or if you want to claim a refund for excess TDS, you need to file a return. Consult the Inland Revenue Department (IRD) website at ird.gov.np or a tax professional for your specific situation.
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