Nepal Salary Tax Calculator FY 2083/84
Free Nepal income tax calculator with the new uniform slabs, SSF and EPF contributions, freelancer 5 percent foreign currency rule, and live take home pay. Updated for the Finance Bill 2083 effective 16 July 2026.
Your tax breakdown
FY 2083/84Ready when you are
Fill in the basics above and tap Calculate. Your annual tax, monthly tax, take home, and the Dashain month breakdown will pop up here in a snap.
What changed for FY 2083/84
Nepal's Finance Bill 2083 reshapes personal income tax for FY 2083/84 (2026/27). Use the calculator above for an instant estimate, then read the bands, deductions, and rebates below to understand how the new structure affects take home pay.
Uniform slab table
Single and married filers now share one schedule. The first 1 percent band doubled from NPR 5 lakh to NPR 10 lakh.
Top rate cut
The peak personal income tax rate falls from 39 percent to 29 percent. Earlier 30, 36, and 39 percent bands collapsed into 27 and 29 percent.
SSF and EPF unchanged
Employee 11 percent and employer 20 percent of basic salary remain in force. EPF 10 percent stays for firms not on SSF.
Freelancer flow unchanged
Foreign currency receipts under NPR 40 lakh credited via bank with PAN are still taxed at a flat 5 percent at conversion as a final tax.
Slabs, contributions, deductions, and compliance reference
FY 2083/84 income tax slabs
Uniform table for resident natural persons. Single and married filers share the same brackets.
| Annual taxable income (NPR) | Rate | Note |
|---|---|---|
| 0.00 to 10,00,000.00 | 1% | Waived for SSF contributors |
| 10,00,000.00 to 15,00,000.00 | 10% | Standard band |
| 15,00,000.00 to 25,00,000.00 | 20% | Standard band |
| 25,00,000.00 to 40,00,000.00 | 27% | Standard band |
| Above 40,00,000.00 | 29% | Standard band |
Social Security Fund contributions
Calculated on basic salary only. Mandatory in the formal private sector. Pension eligibility after 180 months.
| Side | Rate | Allocation |
|---|---|---|
| Employee | 11% of basic | 10% pension fund and 1% social security tax |
| Employer | 20% of basic | 10% pension fund, 8.33% gratuity, 1.67% additional |
| Combined | 31% of basic | Funds medical, maternity, accident, pension, dependents |
EPF, CIT, and gratuity
Alternatives to or alongside SSF. CIT is voluntary and shares the retirement deduction ceiling.
| Fund | Rate | Notes |
|---|---|---|
| EPF employee | 10% of basic | Voluntary if not on SSF |
| EPF employer | 10% of basic | Voluntary if not on SSF |
| CIT | Voluntary | Counts toward retirement deduction ceiling |
| Gratuity | 8.33% (employer) | Bundled inside SSF 20% if enrolled |
Allowable deductions
Subtracted from gross income before slabs are applied. Always check the ceiling.
| Deduction | Cap or rule |
|---|---|
| Retirement (SSF + EPF + CIT) | Min(1/3 of gross, NPR 5,00,000) |
| Life insurance premium | Up to NPR 40,000 per year |
| Medical insurance premium | Up to NPR 20,000 per year |
| Residential building insurance | Owner-occupied, up to NPR 10,000 per year |
| Children education | 25% of actual tuition or NPR 25,000, whichever is lower |
| Foreign allowance | 75% deductible |
| Remote area allowance | A 50k, B 40k, C 30k, D 20k, E 10k |
| Pensioner extra | +NPR 2,50,000 exemption |
| Person with disability | +NPR 5,00,000 exemption |
Rebates applied after tax
Reduce the final tax figure rather than taxable income.
| Rebate | Rule |
|---|---|
| Female 10% rebate | Female filer, 10% reduction of tax |
| 1% SST waiver | SSF or approved fund contributor, subtract first-slab tax |
| Medical tax credit | Lowest of NPR 1,500, 15% of medical expenses, or actual tax liability |
TDS reference table
Rates relevant for salaried employees and freelancers. The 5 percent foreign currency rate is final under NPR 40 lakh.
| Payment type | Rate |
|---|---|
| Salary | Per uniform slab table |
| Bank or cooperative interest to individual | 6% |
| Dividend | 5% (final) |
| Commission | 15% |
| Lottery or windfall | 25% |
| Foreign currency freelance via bank, PAN, under 40 lakh | 5% (final) |
| Commission or service fees to resident individual insurance agent | 20% (new FY 2083/84) |
| Ride-sharing operator payments to persons on platform | 1% (new FY 2083/84) |
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Nepal salary and freelancer tax: frequently asked questions
Common questions about Nepal income tax for FY 2083/84, SSF and EPF contributions, the freelancer 5 percent foreign currency rule, and filing deadlines.
What are the new income tax slabs in Nepal for FY 2083/84?
Nepal moved to a single uniform slab table for FY 2083/84 (effective 16 July 2026), merging the old single and married schedules. The bands are: 1 percent on income up to NPR 10 lakh, 10 percent from NPR 10 lakh to 15 lakh, 20 percent from 15 lakh to 25 lakh, 27 percent from 25 lakh to 40 lakh, and 29 percent above NPR 40 lakh. The 1 percent first band doubled from NPR 5 lakh and the top rate dropped from 39 percent to 29 percent.
How does the 1 percent social security tax waiver work?
The 1 percent rate on the first NPR 10 lakh is technically a Social Security Tax. If you contribute to the Social Security Fund, that 1 percent is waived because you already pay it through your SSF deduction. Tick the SSF Contributor option in the calculator to apply the waiver to your computed tax.
How is the 10 percent female rebate applied?
A woman receives a 10 percent rebate on her computed annual tax under the Income Tax Act 2058. In the calculator, choose Female under gender to see the rebate applied automatically after slab tax is computed and stacks with the SSF waiver where eligible.
Is SSF in Nepal calculated on basic or gross salary?
Always on basic salary. Employees contribute 11 percent of basic (10 percent pension plus 1 percent social security tax) and employers contribute 20 percent of basic (10 percent pension, 8.33 percent gratuity, 1.67 percent additional). The combined 31 percent funds medical, maternity, accident, old age pension, and dependent benefits. Calculating on gross is one of the most common payroll errors in Nepal.
How are Nepal freelancers earning USD from foreign clients taxed?
Foreign currency receipts under NPR 40 lakh per year, credited through your bank account with a PAN on file, are taxed at a flat 5 percent withheld at the point of NPR conversion. This is a final tax with no further filing required for that income. Above NPR 40 lakh per year, progressive slabs apply and business expenses become deductible.