TAX CALCULATOR
Annual Deduction
NET TAX LIABILITY
Monthly
Rs. 0.00
Yearly
Rs. 0.00
Income & Deductions
Tax Breakdown
| Assessable Income (Rs.) | Rate (%) | Tax Liability (Rs.) |
|---|
Monthly Tax
Rs. 0.00
Yearly Tax
Rs. 0.00
About Income Tax Calculator
This calculator helps individuals, married couples and small taxpayers in Nepal estimate their income tax liability based on the latest fiscal year's tax slabs and deductions. Nepal operates a self‑assessment tax system, meaning you are responsible for declaring your income and calculating your tax using the rates defined by the Income Tax Act 2058.
How it works
The tool asks for your marital status and the fiscal year to ensure the correct tax slabs are applied. You then enter your monthly or annual salary and any deductible allowances (e.g., insurance premium, EPF, CIT or Social Security Fund contributions). The calculator sums your taxable income, applies the appropriate progressive tax rates and returns your total tax liability and net income.
Use this to plan your taxes ahead of time: if your tax liability is high, consider investing in approved savings schemes such as Citizens Investment Trust (CIT) or Social Security Fund (SSF) to reduce your taxable income.
Examples & scenarios
Here are two simplified examples to illustrate how income tax is calculated:
- Example 1: Unmarried individual – Annual income: Rs 800,000; allowed deductions: Rs 50,000 (insurance). Tax liability is calculated progressively: 1 % on the first Rs 500,000 (Rs 5,000); 10 % on the next Rs 200,000 (Rs 20,000); 20 % on the remaining Rs 50,000 (Rs 10,000). Total tax ≈ Rs 35,000.
- Example 2: Married couple – Combined annual income: Rs 1,400,000; deductions: Rs 80,000. After deductions, taxable income = Rs 1,320,000. Tax: 1 % on first Rs 600,000 (Rs 6,000); 10 % on next Rs 400,000 (Rs 40,000); 20 % on remaining Rs 320,000 (Rs 64,000). Total tax ≈ Rs 110,000. Married couples benefit from higher threshold.
Limitations
- The calculator provides estimates based on current tax slabs and common deductions. Actual tax may differ due to special allowances, additional income sources or recent legislative changes.
- Businesses and self‑employed individuals may need to account for business expenses, VAT and other taxes beyond this calculator’s scope.
Income Tax FAQs
Income tax is basically the money that a government earns from the citizens and commercial entities in terms of tax payment. The income tax is computed considering the taxable income, which may include wages, profit from business, or any other forms of income. The Income Tax Act, 2058 provisioned governing income tax procedures in Nepal, mentioning tax rates, exemptions, and deductions available to eligible taxpayers.
Income taxpayers of Nepal must fill out the income returns to the Government of Nepal in accordance with tax laws every year. As for the tax calculator Nepal or with the help of a salary tax calculator, estimates tax liability as per income, possible deductions, and applicable tax slabs therein.
Mero Tool provides a simple tax calculator so that one can know an individual's tax liability at a glance. The tax calculation tools enable tax compliance and easy planning of taxes.
An Income Tax Calculator is utilized to approximate an individual's tax liability based on their income, deductions, and applicable tax slabs. Nepal follows a self-assessment tax system in which individuals, married couples, and small taxpayers are taxed under different brackets.
Just plug in your annual or monthly gross salary, other allowances, and deductions (EPF, CIT, SSF, insurance). The calculator applies the latest tax rates to arrive at your overall tax burden.
Personal Income Tax (PIT) Rates in Nepal (FY 2080-81)
For Individuals
| Taxable Income (Rs.) | Tax Rate (%) |
|---|---|
| Up to 500,000 | 1% |
| 500,001 - 700,000 | 10% |
| 700,001 - 1,000,000 | 20% |
| 1,000,001 - 2,000,000 | 30% |
| 2,000,001 - 5,000,000 | 36% |
| Over 5,000,000 | 39% |
For Married Couples
| Taxable Income (Rs.) | Tax Rate (%) |
|---|---|
| Up to 600,000 | 1% |
| 600,001 - 800,000 | 10% |
| 800,001 - 1,100,000 | 20% |
| 1,100,001 - 2,000,000 | 30% |
| 2,000,001 - 5,000,000 | 36% |
| Over 5,000,000 | 39% |
Deductions: EPF, CIT, and SSF Contributions
- EPF (Employee Provident Fund): 10% of basic salary (Employer contributes 10%)
- CIT (Citizen Investment Trust): Up to रु. 300,000 deductible
- SSF (Social Security Fund): 11% employee contribution + 20% employer contribution
- Life/Health Insurance: Up to रु. 40,000 deductible