Nepal Salary Tax Calculator

For FY 2083/84, unmarried individuals pay 1% on the first Rs. 5,00,000 (social security tax), 10% on the next Rs. 2,00,000, 20% on the next Rs. 3,00,000, 30% on the next Rs. 10,00,000, 36% on the next Rs. 30,00,000, and 39% on income above Rs. 50,00,000. Married individuals enjoy a higher first slab of Rs. 6,00,000.

Salary tax is computed by first determining total annual income (monthly salary × months + bonus). Eligible deductions like SSF, EPF, CIT (capped at ⅓ of total income), life insurance (max Rs. 40,000), and medical insurance (max Rs. 20,000) are subtracted to arrive at the net assessable income. Progressive tax slabs are then applied to this amount.

You can claim deductions for Social Security Fund (SSF), Employees' Provident Fund (EPF), and Citizen Investment Trust (CIT) contributions — combined, these are capped at one-third of your total income. Additionally, life insurance premiums (up to Rs. 40,000) and medical insurance premiums (up to Rs. 20,000) are deductible.

If you're contributing to the Social Security Fund (SSF), the 1% social security tax on the first slab is waived. This means your first Rs. 5,00,000 (unmarried) or Rs. 6,00,000 (married) is effectively tax-free. SSF contributions also reduce your taxable income as a deduction.

Yes. Unmarried female employees receive a 10% rebate on their computed income tax. For example, if the calculated tax is Rs. 1,00,000, the actual liability becomes Rs. 90,000. This rebate applies only when the female status and unmarried status are both selected.

Life insurance premiums are deductible up to a maximum of Rs. 40,000 per year. Medical insurance premiums are deductible up to Rs. 20,000 per year. Any amount paid beyond these limits cannot be claimed as a deduction for income tax purposes.