Nepal Salary Tax Calculator

For FY 2083/84 the first Rs 10,00,000 of taxable income is charged at 1% (social security tax), Rs 10,00,001–15,00,000 at 10%, Rs 15,00,001–25,00,000 at 20%, Rs 25,00,001–40,00,000 at 27%, and anything above Rs 40,00,000 at 29%. The separate schedules for individuals and married couples were merged this year, so marital status no longer changes the bands.

No. The 1% charged on the first slab is social security tax rather than income tax, and it is waived for contributors to the Social Security Fund, for sole proprietors, and on pension income. Switch on the SSF toggle in the calculator and that band is charged at zero.

The three are treated as one pool. You may deduct the lower of one third of your assessable income or Rs 5,00,000 in total. Anything you contribute above that ceiling still leaves your pay packet but does not reduce your taxable income.

A resident woman whose income comes only from employment in Nepal receives a 10% rebate on the tax computed under the slab table. The calculator applies it to the total tax after the slabs have been worked out.

Life insurance premiums up to Rs 40,000 a year, health or medical insurance up to Rs 20,000, and housing insurance up to Rs 10,000. Each has its own ceiling and they do not share a pool. Claim the premium you actually paid — the calculator caps it for you if you enter more.

It should be very close. Employers deduct tax at source monthly against a projection of your annual income, so the monthly figure here is the same calculation your payroll runs. Differences usually come from allowances, a mid-year salary revision, or income from outside your employment that payroll does not see.