Nepal income tax slabs FY 2083/84
The tax rates below apply to resident individuals, including salaried employees, for income earned in FY 2083/84 (Shrawan 2083 to Ashadh 2084). Last reviewed on 23 Oct 2026.
Tax rates for individuals
| Annual taxable income | Rate | Notes |
|---|---|---|
| Up to Rs. 10,00,000 | 1% | Social Security Tax; not charged to SSF members |
| Rs. 10,00,000 – Rs. 15,00,000 | 10% | Income tax |
| Rs. 15,00,000 – Rs. 25,00,000 | 20% | Income tax |
| Rs. 25,00,000 – Rs. 40,00,000 | 27% | Income tax |
| Above Rs. 40,00,000 | 29% | Income tax |
The Finance Act 2083 removed the separate schedule for married couples, so the same slabs apply whether you are single or married. Some sources describe the 29% top rate as 27% plus a 2% surcharge; the tax payable is the same either way.
How progressive slabs work
Each rate applies only to the part of your taxable income that falls inside its slab. If your taxable income is Rs. 12,00,000, the first Rs. 10,00,000 is taxed at 1% and only the remaining Rs. 2,00,000 is taxed at 10%. Moving into a higher slab never reduces your in-hand salary.
The 1% on the first slab is Social Security Tax. Employees who contribute to the Social Security Fund (SSF) do not pay it. Contributing to EPF or CIT alone does not remove it.
Tax at common income levels
| Taxable income | Annual tax | SSF member |
|---|---|---|
| Rs. 8,00,000 | Rs. 8,000 | Rs. 0 |
| Rs. 12,00,000 | Rs. 30,000 | Rs. 20,000 |
| Rs. 20,00,000 | Rs. 1,60,000 | Rs. 1,50,000 |
| Rs. 35,00,000 | Rs. 5,30,000 | Rs. 5,20,000 |
| Rs. 60,00,000 | Rs. 12,45,000 | Rs. 12,35,000 |
Taxable income is after deductions such as retirement contributions and insurance premiums. Use the salary tax calculator to work out your own taxable income and monthly TDS.
What changed from FY 2082/83
- The 1% slab widened from Rs. 5,00,000 (Rs. 6,00,000 for couples) to Rs. 10,00,000.
- The top marginal rate fell from 39% to 29%.
- The separate couple schedule was removed.
- Six slabs were reduced to five.
Sources
- Tax rate for natural persons for FY 2083/84 — Inland Revenue Department
- Economic Act 2083 (Finance Act 2083) — Inland Revenue Department
- Economic Act 2083 – information manual on tax — Inland Revenue Department
- Income Tax Act 2058 (as amended) — Inland Revenue Department
- Economic Bill 2083 — Ministry of Finance
Read the step-by-step salary tax guide for how deductions and credits fit in.