Salary Tax Calculator Nepal 2083/84 — FY 2026/27

From 1 Shrawan 2083 (16 July 2026), the start of FY 2083/84. Payroll for Shrawan onwards uses the new exemption and top rate. Jestha and Ashadh 2083 (the last two months of FY 2082/83) continue under the FY 2082/83 framework. Finance Bill 2083 must first receive Parliamentary and Presidential approval before binding.

Single resident — 1 percent SST on 0-500K, 10 percent on 500K-700K, 20 percent on 700K-1M, 30 percent on 1M-2M, 36 percent on 2M-5M, 39 percent above 5M. Married joint first slab raised to NPR 600,000. Women filing individually receive a 10 percent rebate on computed tax. SSF contributors have the 1 percent SST waived on the first slab.

29 percent — cut by 10 percentage points from the FY 2082/83 top rate of 39 percent. This is the largest single-year top-rate cut in over a decade. It applies to the highest income band; the exact threshold at which the top rate kicks in is confirmed through IRD circulars under Finance Bill 2083 after Parliamentary passage of the bill.

Use the FY 2082/83 slab table for monthly payroll up to and including Ashadh 2083 (mid-July 2026). From Shrawan 2083 onwards, apply the new FY 2083/84 framework — NPR 1 million exemption, 29 percent top rate, and intermediate bands as published by IRD circular. Book a payroll-system review for the first working week of Shrawan to avoid back-computation across multiple months.

An employee earning NPR 800,000 annually pays NPR 45,000 income tax under FY 2082/83 (1 percent on first 500K + 10 percent on 500K-700K + 20 percent on 700K-800K). Under FY 2083/84 the same employee pays zero — the entire NPR 800,000 sits below the new NPR 1 million exemption. The relief flows through to monthly take-home from Shrawan 2083.

Four standing deductions reduce taxable income: retirement fund contributions up to NPR 500,000 or one-third of assessable income; life insurance premium up to NPR 40,000; health insurance premium up to NPR 20,000; remote area allowance up to NPR 50,000. These deductions apply before the slab computation — taxable income equals gross income minus permitted deductions. Retention into FY 2083/84 is expected via IRD circulars.

Two principal rebates. Women filing individually receive a 10 percent rebate on computed tax — a long-standing Income Tax Act 2058 feature. SSF (Social Security Fund) contributors have the 1 percent Social Security Tax on the first slab waived in recognition of their parallel SSF contribution of 11 percent employee plus 20 percent employer. Both rebates are expected to carry forward into FY 2083/84.

Married couples can file jointly. Under FY 2082/83 the first slab is raised to NPR 600,000 (versus NPR 500,000 for single filers), with subsequent bands shifting accordingly; the top rate remains 39 percent above NPR 5 million. The FY 2083/84 married-joint thresholds will be published by IRD circular under Finance Bill 2083 — verify before computing the new payroll TDS.

Employees and employers in covered sectors contribute to the SSF — 11 percent of basic salary from the employee plus 20 percent from the employer (combined 31 percent). The fund covers retirement, medical, accident, maternity, and dependent benefits. SSF contributors have the 1 percent Social Security Tax on the first income slab waived. The SSF framework continues into FY 2083/84 unchanged.

Nepali tax residents (those meeting the 183-day residence test in a fiscal year) are taxed on worldwide income, including foreign-source salary. Double Tax Avoidance Agreements (DTAAs) with countries such as India, China, Korea, Thailand, and others provide relief from double taxation. Non-residents (failing the 183-day test) are taxed only on Nepal-source income. See our NRN tax filing guide for cross-border specifics.

Lump-sum withdrawal from approved retirement funds (provident fund, gratuity, pension fund) receives concessional treatment under the Income Tax Act 2058. The exact slab treatment for FY 2083/84 will be confirmed by IRD circular. Taxpayers planning a withdrawal close to the 31 Ashadh 2083 boundary should consult an adviser on whether shifting the withdrawal across the fiscal-year boundary changes the effective rate.

A 1 percent tax on income in the first slab (NPR 0-500K under FY 2082/83). SSF contributors are exempt because their SSF contribution covers the same social-security purpose. Non-SSF earners pay the SST through normal payroll TDS. The first-slab structure resets under FY 2083/84 — verify the new SST band via IRD circular under Finance Bill 2083.

Yes. Bonuses, dashain bonus, festival allowance, dearness allowance, transport allowance (above limits), housing allowance, and other cash remuneration are taxable salary. Some specific reimbursements against documented expenditure (telephone, vehicle, training) are excluded under Income Tax Act 2058 schedules. Confirm specific allowance treatment with the IRD circular and the employer's payroll structure.

Civil servant remuneration rises about 21 percent net. The base salary scale increases 10 percent, supplemented by a monthly incentive allowance of 10 percent of the new scale — multiplicatively producing the 21 percent effective uplift. The change takes effect from 1 Shrawan 2083 (16 July 2026). Salary tax computation on the raised remuneration follows the new FY 2083/84 slab structure.

The 1 percent Social Security Tax (SST) is a tax on the first income slab paid to the government revenue account, applicable to non-SSF earners. The Social Security Fund (SSF) is a contribution-funded social insurance scheme — 11 percent from the employee plus 20 percent from the employer — covering retirement, medical, and other benefits. SSF participants are exempt from the SST because the SSF contribution already covers the same purpose.

After Parliamentary passage of Finance Bill 2083 and Presidential authentication, the Finance Act 2083 schedule publishes the operational slab table. The IRD typically issues circulars during early Shrawan operationalising the slab table for payroll TDS. Realistic timing is one to three weeks after the Budget Speech — confirm via ird.gov.np and the Ministry of Finance website.

Taxable income equals gross assessable income minus permitted deductions (retirement fund, insurance, remote area allowance). If the resulting taxable income is below NPR 1 million, no income tax applies under FY 2083/84. If above, the slab structure applies to the portion above the exemption. The exemption is not a deduction; it is the income level below which no tax is computed at all.

No — that measure is a VAT refund for consumer-facing transactions paid digitally, not a salary tax change. The salary tax computation and TDS deduction process is unaffected by the digital-payment VAT refund. The two systems run on separate accounts in the tax framework. Consumers benefit from the VAT refund separately when they make digital payments for goods and services.

The 1 percent tax-dispute settlement window opened by Budget 2083/84 applies to disputes pending in court or at the Revenue Tribunal. For salaried taxpayers with disputes over prior-year assessments (additional demand from the IRD, contested deductions, status disputes), the one-time settlement allows closure at principal plus 1 percent. Eligibility, window, and procedure follow IRD circulars under Finance Bill 2083.

Employees should retain the year-end payroll statement, retirement fund contribution receipts, life and health insurance premium receipts, remote area allowance documentation if applicable, and bank statements for non-salary income. Self-employed taxpayers retain expense receipts, business income records, and asset-disposal documentation. Records should be retained for at least five years under Income Tax Act 2058 record-keeping requirements.

For salary structuring across the FY 2082/83 to FY 2083/84 boundary — particularly for high earners and those with significant non-salary income. For payroll system reconfiguration once the IRD circular publishes the FY 2083/84 slab table. For NRN salary tax where Nepal-source and foreign-source income interact. For capital-gains realisation timing across the fiscal-year boundary. For tax-dispute settlement evaluation under the 1 percent window.