Nepal Salary Tax Calculator — Monthly TDS & Take-Home Pay

For individuals (unmarried/single): First Rs. 5 Lakhs is taxed at 1% Social Security Tax (SST), next Rs. 2 Lakhs (5L–7L) at 10%, next Rs. 3 Lakhs (7L–10L) at 20%, next Rs. 10 Lakhs (10L–20L) at 30%, next Rs. 30 Lakhs (20L–50L) at 36%, and income above Rs. 50 Lakhs at 39%. For married couples: The 1% slab extends up to Rs. 6 Lakhs, the 10% slab spans 6L–8L, 20% spans 8L–11L, and subsequent slabs match the individual rates.

No. Under Nepal Income Tax Act Schedule 1 and IRD directives, employees registered in the Social Security Fund (SSF) are exempt from the 1% Social Security Tax on their first tax bracket (up to Rs. 5 Lakhs for singles or Rs. 6 Lakhs for couples). Their effective tax on the first slab is 0%.

In Nepal, Dashain or festival bonus (typically 1 month of basic or gross salary) is treated as part of the employee's total annual employment income. It is added to the annual salary pool and taxed under the same progressive slab rates. Employers must withhold TDS on the bonus proportionately across payroll cycles.

Statutory allowable deductions include: (1) Retirement fund contributions (EPF/CIT/SSF) up to the lesser of one-third of assessable income or Rs. 3,00,000 (or Rs. 5,00,000 if enrolled in SSF); (2) Life insurance premium up to Rs. 40,000; (3) Health/medical insurance premium up to Rs. 20,000; and (4) Remote area allowance up to Rs. 50,000.

Resident individual women who have only employment income and assess themselves as single (unmarried) are entitled to a 10% tax rebate (credit) directly on their computed income tax liability under Schedule 1 of the Income Tax Act.

Employers must withhold one-twelfth of the estimated annual tax liability from the employee's salary each month and deposit it into the government revenue treasury via the IRD E-TDS portal by the 25th of the following Bikram Sambat month.