Enter your monthly salary, any Dashain bonus, and the deductions you actually claim — SSF, EPF, CIT, life and health insurance. The calculator works through Nepal's progressive slabs and hands back an exact yearly and monthly tax figure, with the breakdown shown below.
Income tax based on Nepal Government slabs
Nepal taxes salary income on a progressive slab basis: each bracket is only applied to the portion of income that falls inside it, so a higher rate never hits your whole salary. Married couples get a slightly wider first slab than individuals — Rs 6 lakh vs. Rs 5 lakh — but from the second bracket onwards the rates line up.
| Income band (Rs.) | Rate |
|---|---|
| Up to 5,00,000 | 1%* |
| 5,00,001 – 7,00,000 | 10% |
| 7,00,001 – 10,00,000 | 20% |
| 10,00,001 – 20,00,000 | 30% |
| 20,00,001 – 50,00,000 | 36% |
| Above 50,00,000 | 39% |
| Income band (Rs.) | Rate |
|---|---|
| Up to 6,00,000 | 1%* |
| 6,00,001 – 8,00,000 | 10% |
| 8,00,001 – 11,00,000 | 20% |
| 11,00,001 – 20,00,000 | 30% |
| 20,00,001 – 50,00,000 | 36% |
| Above 50,00,000 | 39% |
Payroll in Nepal looks simple on a payslip but has a few moving parts behind the scenes — progressive slabs, a separate Social Security Tax, and deduction caps that depend on whether you contribute to SSF, EPF or CIT. This tool stitches those rules together so you don't have to recalculate everything by hand every appraisal season.
It takes your monthly salary (plus festival bonus, if any), works out the annual gross, subtracts the deductions you're actually claiming, and then runs the progressive slab table for FY 2082/83 (or 2081/82 and 2080/81 if you're reconstructing an earlier year). The output covers tax per slab, total yearly tax, monthly tax, and net take-home — the numbers you need for salary negotiation, budgeting or double-checking your HR's arithmetic.
Six brackets, applied progressively. Individuals: 1% up to Rs 5 lakh, 10% on Rs 5–7 lakh, 20% on Rs 7–10 lakh, 30% on Rs 10–20 lakh, 36% on Rs 20–50 lakh, and 39% on everything above Rs 50 lakh. Married couples get a wider first slab of Rs 6 lakh; the higher slabs line up. Rates are unchanged from FY 2081/82.
Start with total annual income (monthly salary × months + bonus). Subtract your eligible deductions: SSF, EPF and CIT (combined cap of Rs 5,00,000 or one-third of income), plus life insurance (up to Rs 40,000) and health insurance (up to Rs 20,000). What's left is your assessable income, and the slab rates above apply to it band-by-band, not to the whole amount.
Yes. The Social Security Tax (that 1% on the first slab) is waived in full if you're an SSF contributor. Between the waiver and the SSF amount itself being deductible, it's usually the single most tax-efficient move available to a salaried employee in Nepal.
SSF, EPF and CIT are treated as one combined bucket, capped at the lower of Rs 5,00,000 or one-third of your annual assessable income. So on a Rs 12,00,000 salary, the bucket caps at Rs 4,00,000 (because one-third is less than Rs 5 lakh). Insurance is separate: Rs 40,000 for life, Rs 20,000 for health.
Rs 50,000 × 12 = Rs 6,00,000 annually. Without any deductions, an individual pays Rs 15,000 for the year — Rs 5,000 (1% on the first Rs 5 lakh) plus Rs 10,000 (10% on the next Rs 1 lakh). That's about Rs 1,250 a month. If you contribute to SSF, the 1% is waived and the annual bill drops to Rs 10,000.
In most cases yes — the engine here uses the same slab logic and caps that payroll departments apply. Gaps usually come from items your employer counts as taxable that you haven't entered here, such as allowances, leave encashment or relocation payouts. Drop those into the bonus field to see the effect.
No. The calculator runs entirely in JavaScript in your browser. Nothing is uploaded, logged or persisted once you close the page — which matters because salary is one of the most sensitive numbers you can put into a random online form.
