Income tax calculator Nepal 2026

Enter your monthly pay and the calculator gives the income tax you owe for the Nepali income year 2083/84, which began on July 17, 2026. You see the tax for the year and the share to withhold each month.

The Inland Revenue Department now publishes the same slabs for a single person and for a couple, so there is no marital status to choose. What changes your bill is what you deduct: retirement contributions, insurance premiums and the remote area allowance.

How it's calculated

Income for the year is twelve months of pay plus any bonus. The retirement contribution you deduct is the smaller of NPR 500,000 and one third of your assessable income. A Fund contributor deducts the 10% provident fund share of basic pay.
Insurance premiums come off too: life up to NPR 40,000, health up to NPR 20,000 and your own house up to NPR 10,000 a year. If you work in a remote area, you also deduct the allowance for your category, from NPR 50,000 for Category A to NPR 10,000 for Category E.
The slabs apply to what is left. The first NPR 1,000,000 is taxed at 1%, the next band at 10%, then 20%, 27%, and 29% above NPR 4,000,000. A woman whose only income is pay takes 10% off the final tax.

An example

A Fund contributor earns NPR 100,000 a month with basic pay of NPR 50,000. Income is NPR 1,200,000 and the provident share is NPR 60,000, so taxable income is NPR 1,140,000. The first band carries no tax for a contributor, and the remaining NPR 140,000 is taxed at 10%. The tax is NPR 14,000 a year, or NPR 1,166.67 a month.

Frequently asked questions

Do single people and couples pay different tax?

Not for the 2083/84 income year. The Inland Revenue Department table lists the same limits and rates for both columns, with 1% up to NPR 10 lakh and 29% above NPR 40 lakh.

Do I pay the 1% on the first band if I contribute to the Social Security Fund?

No. The Income Tax Act, 2058, schedule 1, says the 1% is not charged on income of people who contribute to the Social Security Fund or to a retirement fund, or on retirement income.

How much can I deduct for retirement contributions?

The smaller of NPR 5 lakh and one third of your assessable income, for contributions to an approved retirement fund.

What is the remote area allowance?

A deduction from taxable income for people working in a remote area. It runs from NPR 50,000 for Category A to NPR 10,000 for Category E.

Key terms

Taxable income: Income for the year less the deductions the Income Tax Act allows.
Income year: The Nepali fiscal year, from Shrawan 1 to the end of Asar. The 2083/84 year began in July 2026.
Lakh: One hundred thousand. NPR 10 lakh is NPR 1,000,000.