The Finance Minister's Budget Speech of 29 May 2026 (Jestha 15, 2083 BS) rewrote Nepal's personal income tax structure for FY 2083/84 — the most significant change to individual tax slabs in over a decade.
The New Unified Structure
From Shrawan 1, 2083 (mid-July 2026), the married/unmarried distinction is removed. Everyone follows one schedule: 1% up to NPR 10,00,000 (waived for SSF contributors), 10% on the next NPR 5,00,000, 20% on the next NPR 10,00,000, 27% on the next NPR 15,00,000, and 29% above NPR 40,00,000.
Compared to FY 2082/83
The old structure taxed income above NPR 5,00,000 (single) or 6,00,000 (married) starting at 10%, climbing to a 39% top rate above NPR 50,00,000. The new structure doubles the effective tax-free threshold and cuts the top marginal rate by 10 percentage points.
What This Means in Practice
A salaried employee earning NPR 15,00,000 with SSF contribution paid roughly NPR 2,30,000 in tax under FY 2082/83 single-filer rules — under FY 2083/84, that drops to around NPR 50,000.
One Caveat
These figures follow the Budget Speech and the Finance Bill 2083, which passed the National Assembly on 9 July 2026. Final numbers become binding once the Finance Act is formally gazetted — worth a quick check against the IRD circular before filing.
Run your own numbers with Company Sathi's Salary Tax Calculator, updated for FY 2081/82, 2082/83, and the new FY 2083/84 slabs.
