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Income Tax Rate in Nepal: Slabs, Rates & Filing Guide (2026)
Complete guide to the income tax rate in Nepal — personal slabs, corporate rates, filing deadlines, deductions...
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Table of Contents0sections
- Who collects vehicle tax in Nepal?
- Bagmati Province motorcycle tax rates for FY 2082/83
- Bagmati Province car, jeep and SUV tax for FY 2082/83
- Electric vehicle tax in Bagmati Province
- What happens if you miss the Ashad deadline?
- Bagmati FY 2082/83 amnesty — pay 3 years, settle the rest
- Documents you need at the Transport Management Office
- How to pay vehicle tax online in Nepal
- Tax when transferring ownership or moving province
Most Nepali vehicle owners run into the same panic every June — Ashad is closing, the bluebook is in the glove box, and the Transport Management Office queue is starting to wrap around the block. Miss the deadline by a day and the penalty meter starts at five percent; miss it for a year and it climbs to thirty-two percent of the base tax.
Vehicle tax in Nepal is a provincial tax. Each of the seven provinces sets its own annual rates through its provincial Finance Act, and each province collects payment through its own Transport Management Office network. The federal Motor Vehicles and Transport Management Act 2049 (1993) provides the registration and enforcement framework, but the rate you pay depends on where your vehicle is registered.
This guide covers Bagmati Province rates for FY 2082/83 in full — motorcycles, cars and SUVs, electric two- and four-wheelers — plus the penalty schedule, the documents you need at the counter, the online payment options, and the FY 2082/83 amnesty that lets eligible Bagmati owners settle decade-old dues by paying just three years.
Vehicle tax in Nepal is collected annually by each province through its Transport Management Office under the Motor Vehicles and Transport Management Act 2049 and the relevant provincial Finance Act. In Bagmati Province for FY 2082/83 (mid-July 2025 to mid-July 2026), motorcycle tax ranges from NPR 3,000 (≤125 cc) to NPR 30,000 (above 650 cc), and car/jeep tax from NPR 22,000 (≤1,000 cc) to NPR 65,000 (above 3,500 cc). Electric two-wheelers pay NPR 1,000–3,000 and electric four-wheelers NPR 5,000–30,000 by motor capacity. The deadline is the last day of Ashad. Late-payment penalty is 5 percent in Baisakh, 10 percent through mid-Ashad, 20 percent to end of Ashad, and 32 percent from Shrawan onwards. Bluebook renewal admin fee is approximately NPR 300. Payment is accepted at the Transport Management Office counter or online via the Nagarik App, eSewa, Khalti and ConnectIPS.
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Our tax law team handles bluebook arrears, penalty disputes and ownership-transfer tax clearance for vehicle owners across Bagmati. The two friction points we see most often are the same every year — first, owners who registered in one province and now live in another assume they can pay where they live (they cannot — tax follows the registration province), and second, owners who let dues lapse for several years and then face a recovery bill that exceeds the vehicle's resale value. The amnesty in Bagmati's FY 2082/83 budget is a one-time chance to fix the second problem; ignoring it costs money you do not need to spend.
Who collects vehicle tax in Nepal?
Vehicle tax sits on the provincial list under Schedule 6 of the Constitution of Nepal 2072 (2015). Each province enacts its own Finance Act every Ashad, sets the annual rates for motor vehicles, electric vehicles and public-service vehicles, and collects through Transport Management Offices located in each province. Bagmati Province operates Transport Management Offices in Ekantakuna (Lalitpur), Chabahil (Kathmandu), Bhaktapur, Sano Bharyang, Bharatpur (Chitwan) and several other district centres, each handling renewals for vehicles registered in its jurisdiction.
The federal Department of Transport Management at Minbhawan is the issuing authority for the original vehicle registration certificate (bluebook) and sets vehicle classification standards under the Motor Vehicles and Transport Management Act 2049. Annual tax collection, however, is fully provincial.
Bagmati Province motorcycle tax rates for FY 2082/83
The Bagmati Province Finance Act 2082 sets the following motorcycle and scooter rates for the fiscal year running mid-July 2025 to mid-July 2026:
| Engine capacity | Annual tax (NPR) |
|---|---|
| Up to 125 cc | 3,000 |
| 126 cc – 150 cc | 5,000 |
| 151 cc – 225 cc | 6,500 |
| 226 cc – 400 cc | 11,000 – 12,000 |
| 401 cc – 650 cc | 20,000 |
| Above 650 cc | 30,000 |
The 226 cc–400 cc band has a small range because Bagmati distinguishes scooter-style from sport-style motorcycles within this segment; the Transport Management Office applies the appropriate figure based on the vehicle category recorded on the bluebook. For scooters and commuter motorcycles up to 150 cc — the volume of the Nepali two-wheeler market — the effective tax exposure for an on-time renewal is NPR 3,000 to NPR 5,000 plus a roughly NPR 300 bluebook admin fee.
Bagmati Province car, jeep and SUV tax for FY 2082/83
Four-wheeler rates rise sharply with engine capacity, with a steep step-up above the 2,500 cc band that targets large SUVs and luxury sedans:
| Engine capacity | Annual tax (NPR) |
|---|---|
| Up to 1,000 cc | 22,000 |
| 1,001 cc – 1,500 cc | 25,000 |
| 1,501 cc – 2,000 cc | 27,000 |
| 2,001 cc – 2,500 cc | 37,000 |
| 2,501 cc – 3,000 cc | 50,000 |
| 3,001 cc – 3,500 cc | 60,000 |
| Above 3,500 cc | 65,000 |
For a typical Kathmandu household sedan in the 1,200–1,500 cc band, the on-time annual outflow is NPR 25,000 plus the renewal admin fee. A 2.5-litre SUV crosses NPR 50,000, and the largest fossil-fuel SUVs face the NPR 65,000 ceiling.
Electric vehicle tax in Bagmati Province
Electric vehicles are taxed by motor power output rather than engine displacement, and at materially lower rates than fossil-fuel equivalents — the policy lever Nepal has used to push EV adoption in private four-wheelers and last-mile delivery two-wheelers:
| Vehicle type | Power output | Annual tax (NPR) |
|---|---|---|
| Electric two-wheeler | Up to 350 W | 1,000 – 1,500 |
| Electric two-wheeler | 351 W – 1,000 W | 2,000 |
| Electric two-wheeler | 1,001 W – 1,500 W | 2,500 |
| Electric two-wheeler | Above 1,500 W | 3,000 |
| Electric four-wheeler | 10 kW – 50 kW | 5,000 |
| Electric four-wheeler | 51 kW – 125 kW | 15,000 |
| Electric four-wheeler | 126 kW – 200 kW | 20,000 |
| Electric four-wheeler | Above 200 kW | 30,000 |
A mid-spec EV sedan in the 80–110 kW band — the volume segment for Chinese EVs entering the Nepali market — therefore pays NPR 15,000 a year, less than a fifth of what a comparable petrol or diesel SUV in the 2,500 cc class would pay.
What happens if you miss the Ashad deadline?
The penalty schedule in Bagmati follows the Nepali calendar months that run beyond the standard fiscal year-end:
| Period of delay | Penalty on base tax |
|---|---|
| Baisakh (mid-April to mid-May) | 5% |
| Jestha to mid-Ashad (mid-May to end June) | 10% |
| Mid-Ashad to end of Ashad (end June to mid-July) | 20% |
| Shrawan onwards (next fiscal year) | 32% |
The penalty stacks year on year if you skip multiple fiscal years — a vehicle three years in arrears effectively pays the original tax plus 32 percent for each missed year, plus the current year. This is how the unpaid-tax bill on a single car can climb past NPR 200,000 over a few years of neglect.
Bagmati FY 2082/83 amnesty — pay 3 years, settle the rest
Provision 214 of the Bagmati Province budget for FY 2082/83 introduces a one-time amnesty for vehicle owners who let registrations lapse before FY 2080/81. Eligible owners can clear the entire backlog by paying tax, renewal fee and applicable penalty for only three fiscal years — FY 2080/81, FY 2081/82 and FY 2082/83 — provided full payment is made by the end of Jestha 2083 (approximately mid-June 2026).
All older dues, accumulated penalties and interest are written off at the counter once the three-year amount is paid. The waiver applies regardless of vehicle category and includes motorcycles, cars, SUVs and cargo vehicles registered in Bagmati. Owners with vehicles registered in other provinces should check their respective provincial Finance Acts — the amnesty is Bagmati-specific.
Documents you need at the Transport Management Office
The TMO counter will not accept payment without the full document set. Walking in with a missing item is the single most common reason a half-day trip turns into two:
- Bluebook (vehicle registration certificate) — original, with previous renewal stamps
- Citizenship certificate or driving licence of the registered owner — original plus photocopy
- Previous year's tax payment receipt — original, kept inside the bluebook
- Valid third-party insurance certificate — covering at least the renewal year. The TMO will reject the renewal if the insurance has lapsed
- Pollution test certificate for vehicles older than five years (depending on the office)
- Authorisation letter if someone other than the registered owner is paying on their behalf
How to pay vehicle tax online in Nepal
Bagmati Province accepts online vehicle tax payment through the federal Nagarik App (operated by the Department of Information Technology) and the major payment service providers — eSewa, Khalti and ConnectIPS. After payment, the bluebook still has to be physically stamped at the Transport Management Office, but you can skip the queue at the cashier window and go straight to the stamping desk with the digital receipt.
- Open the Nagarik App or your preferred wallet (eSewa, Khalti, ConnectIPS).
- Select the Vehicle Tax / Bluebook Renewal option and choose the registration province.
- Enter the bluebook number, vehicle category and engine capacity. The system fetches the applicable tax and any pending arrears.
- Verify the calculated amount, including any penalty if you are paying after Baisakh.
- Authorise the payment from your linked bank or wallet balance and save the digital receipt.
- Visit the Transport Management Office with the bluebook, citizenship/licence, insurance certificate and the digital receipt to complete the bluebook stamping.
Tax when transferring ownership or moving province
If you are buying or selling a vehicle, the seller must be tax-clear up to the date of transfer — the Transport Management Office will not endorse the ownership change on the bluebook if any tax or penalty is outstanding. The same rule applies on permanent province transfers (re-registering a Bagmati-bluebooked vehicle in Gandaki, for example): clear the originating province's dues, surrender the registration, then re-register in the new province where the rate schedule of that province's Finance Act will apply going forward.
Our law firm in Nepal handles ownership-transfer disputes, undisclosed-arrears claims and refund applications when a buyer discovers post-sale that the seller misrepresented the tax position. For a related read on tax compliance more generally, see our guide to the Tax Clearance Certificate in Nepal.
Frequently Asked Questions
Vehicle tax in Nepal is the annual tax paid on every registered motor vehicle to keep the bluebook valid. It is collected by the relevant province under its annual Finance Act, through the Transport Management Office where the vehicle is registered. The federal Motor Vehicles and Transport Management Act 2049 sets the registration framework while each province sets the rate schedule.
In Bagmati Province, motorcycle and scooter tax for FY 2082/83 is NPR 3,000 for engines up to 125 cc, NPR 5,000 for 126–150 cc, NPR 6,500 for 151–225 cc, NPR 11,000–12,000 for 226–400 cc, NPR 20,000 for 401–650 cc and NPR 30,000 above 650 cc. A bluebook renewal administrative fee of approximately NPR 300 applies on top of the base tax. Other provinces publish their own rate schedules through their respective Finance Acts.
Bagmati car and jeep tax for FY 2082/83 ranges from NPR 22,000 for engines up to 1,000 cc to NPR 65,000 above 3,500 cc, with intermediate bands at NPR 25,000 (1,001–1,500 cc), NPR 27,000 (1,501–2,000 cc), NPR 37,000 (2,001–2,500 cc), NPR 50,000 (2,501–3,000 cc) and NPR 60,000 (3,001–3,500 cc). A typical 1,500 cc household sedan pays NPR 25,000 a year plus the bluebook renewal admin fee. Other provinces apply their own schedules.
The deadline is the last day of Ashad — approximately mid-July of each year. For FY 2082/83 this falls around 16 July 2026. Payment after the deadline attracts a late-payment penalty that begins at 5 percent in Baisakh and rises to 32 percent if delayed into the next fiscal year. Penalties accumulate across multiple unpaid years until the bluebook is renewed in full.
Bagmati Province charges 5 percent in Baisakh (mid-April to mid-May), 10 percent from Jestha to mid-Ashad, 20 percent from mid-Ashad to end of Ashad, and 32 percent from Shrawan of the next fiscal year onwards. The penalty applies to the base tax for that year and stacks across multiple unpaid years. A vehicle three years in arrears effectively pays the original tax plus 32 percent for each missed year, plus the current year.
Yes. The Nagarik App, eSewa, Khalti and ConnectIPS all accept vehicle tax payment for Bagmati registrations and most other provinces. The bluebook still has to be stamped at the Transport Management Office after payment, but you can bypass the cashier queue and go straight to the stamping desk with the digital receipt. Carry the bluebook, citizenship or driving licence and a valid insurance certificate to complete the renewal.
Tax follows the province of registration, not residence. A vehicle registered in Bagmati pays Bagmati rates even if driven mostly in Lumbini, and vice versa. Other variables are engine capacity, vehicle category (private versus commercial), fuel type (electric attracts lower rates), and the year-on-year revisions in the relevant provincial Finance Act. Two identical models can therefore carry materially different annual tax bills.
Bagmati Province charges NPR 1,000–3,000 a year for electric two-wheelers based on motor wattage and NPR 5,000–30,000 a year for electric four-wheelers based on kW output. The ceiling for the highest-power EV (above 200 kW) is NPR 30,000 — less than half the rate of a comparable 2,500 cc fossil-fuel SUV. The lower rates are a deliberate policy lever to push EV adoption in Nepal's private four-wheeler and last-mile delivery segments.
Yes. A valid third-party insurance certificate covering the renewal year is mandatory at the Transport Management Office counter. Without it, the cashier will refuse payment and you must obtain or renew the insurance first. This rule applies regardless of how the tax is paid — counter, Nagarik App, eSewa, Khalti or ConnectIPS — because the bluebook stamping itself depends on a valid insurance check at the office.
Provision 214 of the Bagmati Province budget for FY 2082/83 waives all unpaid vehicle tax dues from before FY 2080/81 for owners who pay tax, renewal fee and penalty for the three fiscal years 2080/81, 2081/82 and 2082/83 by the end of Jestha 2083 (approximately mid-June 2026). After that deadline, full back-dues and stacked 32 percent penalties revive. The amnesty applies regardless of vehicle category — motorcycles, cars, SUVs and cargo vehicles registered in Bagmati all qualify.
No. The amnesty is part of the Bagmati Province budget for FY 2082/83 and applies only to vehicles registered in Bagmati. Other provinces have their own Finance Act and may or may not offer a similar amnesty in their respective budgets. Owners with vehicles registered elsewhere should check their provincial Transport Management Office's notices or consult the relevant provincial Finance Act for any equivalent waiver provision.
No. The Transport Management Office will not endorse an ownership transfer on the bluebook unless all tax, penalty and renewal fee dues are cleared up to the date of transfer. The seller usually clears the dues before the change-of-name application is submitted. If a buyer discovers post-sale that the seller misrepresented the tax position, a refund or compensation claim may lie under the sale contract; an advocate handling vehicle and contract disputes can advise on the recovery route.
Bring the original bluebook, your citizenship certificate or driving licence (original plus a photocopy), the previous year's tax receipt, a valid third-party insurance certificate covering the renewal year, and where applicable a pollution test certificate for vehicles older than five years. Photocopies of the citizenship and licence speed up counter processing. If someone other than the registered owner is paying, an authorisation letter is required.
Yes. A bluebook renewal administrative fee of approximately NPR 300 is charged each year in addition to the base provincial tax. This covers the stamping and registration extension at the Transport Management Office. The exact figure is set by each province's Finance Act and may vary slightly across provinces, but NPR 300 has been the typical Bagmati amount for the last several fiscal years.
For arrears disputes, transfer-of-ownership tax issues, or penalty challenges, consult an advocate who handles tax law and transport regulation in Nepal. Alpine Law Associates' tax practice covers vehicle tax recovery, refund claims, ownership-transfer disputes and Transport Management Office representation. Most disputes resolve through TMO-level reconsideration; in larger or escalating matters the recourse is to the relevant provincial revenue authority or the High Court.
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This article is intended solely for informational purposes and should not be interpreted as legal advice, advertisement, solicitation, or personal communication from the firm or its members. Neither the firm nor its members assume any responsibility for actions taken based on the information contained herein.