Salary Tax Calculator Nepal – Income Tax Calculator

Most salaried employees in Nepal have no idea how much tax is being deducted from their salary every month — or whether the amount their employer cuts is even correct. This salary tax calculator shows you exactly that. Enter your salary, your deductions, your taxpayer type and it breaks down your taxable income, tax slab by slab, monthly TDS, and net take-home for the full year.

What Nepal’s Salary Tax Actually Looks Like

IRD taxes salary income on a slab system. The more you earn, the higher the rate on the portion that falls in each bracket. For FY 2082/83 the slabs for a single individual are:

Married taxpayers get a wider first bracket — 1% applies up to Rs 6,00,000 before the 10% slab kicks in. Female taxpayers get an additional 10% rebate on the total tax calculated.

These slabs apply to your assessable income — not your gross salary. The difference is your deductions, which can significantly reduce how much of your salary actually gets taxed.

How to Use the Salary Tax Calculator — Exact Steps

Fiscal Year Select the fiscal year you’re calculating for — 2082/83, 2081/82, or 2080/81. Tax slabs differ slightly between years so pick the right one. For current year planning, use 2082/83.

Taxpayer Type Select Single, Married, or Female. Married gives you the higher first bracket. Female applies the 10% rebate on final tax. If you’re a married female, select Female — the rebate applies on top of the married bracket.

Monthly Salary Enter your basic monthly salary in rupees. This is your gross monthly salary before any deductions.

Months Enter how many months of salary you’re calculating for. Usually 12 for a full year. If you joined mid-year or are calculating a partial year, adjust this number.

Bonus Enter your total annual bonus in rupees. If you don’t receive a bonus, leave it at zero. Bonus is added to your annual income before tax is calculated.

SSF (Rs/month) Enter your monthly Social Security Fund contribution if applicable. SSF, EPF, and CIT are all deductible but their combined deduction is capped — more on that below.

EPF (Rs/month) Enter your monthly Employee Provident Fund contribution. Most formal sector employees in Nepal contribute 10% of basic salary to EPF. Enter your actual monthly amount here.

CIT (Rs/year) Enter your annual Citizen Investment Trust contribution if you have one. Enter the yearly figure, not monthly.

Insurance (Rs/yr) Enter your annual life insurance premium and medical insurance premium combined. Life insurance deduction is capped at Rs 40,000 per year. Medical insurance is capped at Rs 20,000 per year.

Click Calculate Tax

Results load immediately. You’ll see Monthly Tax and Yearly Tax at the top. Below that the full breakdown — Gross Income, Total Deductions, Taxable Income, Total Tax, Net Income for the year, and your Effective Tax Rate.

The Tax Slab Breakdown table below shows exactly how much of your income falls in each bracket and what tax that portion generates. The Income & Deduction Details table shows every component — salary, bonus, each deduction — so you can verify the numbers yourself.

Hit Clear to reset everything.

The Deduction Cap — What Most People Miss

SSF, EPF, and CIT contributions are all tax deductible but not unlimited. IRD caps the combined deduction at whichever is lower — Rs 5,00,000 or one-third of your gross salary.

So if your gross annual salary is Rs 9,00,000, one-third is Rs 3,00,000. Even if your total SSF+EPF+CIT contributions exceed that, only Rs 3,00,000 gets deducted from taxable income.

For insurance, life and medical are separate caps — Rs 40,000 and Rs 20,000 respectively, regardless of how much you actually paid in premiums.

The salary tax calculator applies all these caps automatically.

Quick Example

Monthly salary Rs 80,000, single taxpayer, EPF Rs 8,000/month, no bonus, no insurance.

Gross annual income: Rs 9,60,000 EPF annual: Rs 96,000 — but one-third of Rs 9,60,000 is Rs 3,20,000, so Rs 96,000 is fully deductible Taxable income: Rs 9,60,000 − Rs 96,000 = Rs 8,64,000

Tax calculation on Rs 8,64,000:

• 1% on Rs 5,00,000 = Rs 5,000
• 10% on Rs 2,00,000 = Rs 20,000
• 20% on Rs 1,64,000 = Rs 32,800

Total yearly tax: Rs 57,800 Monthly TDS: roughly Rs 4,817

That’s what your employer should be deducting. Run your own numbers in the income tax calculator Nepal above to verify what’s actually leaving your salary.

FAQs

My employer deducts a different amount — who’s right? Run your numbers here and compare. Employers sometimes calculate on basic salary only, missing bonus or applying wrong slab rates. If there’s a gap, raise it with your HR or accounts team with the breakdown this calculator generates.

What’s the difference between SSF and EPF? EPF is the older Employee Provident Fund — employer and employee each contribute 10% of basic salary. SSF is Social Security Fund, a newer scheme that replaced EPF for many formal sector employees. You’ll be enrolled in one or the other, not both.

Does the female rebate apply only to basic salary income? The 10% rebate applies to the total income tax calculated on all assessable income — salary, bonus, everything included.

Can I calculate tax for previous fiscal years? Yes. The Fiscal Year dropdown includes 2081/82 and 2080/81. Useful if you need to cross-check past TDS amounts.

What is effective tax rate? It’s your total tax divided by your gross income — expressed as a percentage. Different from the slab rate. Someone in the 20% slab doesn’t pay 20% on everything, only on the portion above Rs 7 lakh. The effective rate shows what percentage of your total income actually went to tax.

Run your salary through this tax calculator Nepal tool and see exactly how much of your income goes to IRD — and whether your current TDS deductions are on track.

Tax slabs are based on IRD guidelines for FY 2082/83. Verify with a tax professional for official filing.