How to use this calculator
Step 1 — Enter your annual gross salary in NPR for the fiscal year (mid-July to mid-July).
Step 2 — Enter your annual basic salary. SSF's 11% is computed on basic only — using gross here is the single most common Nepali payroll error.
Step 3 — Say whether you contribute to SSF. Contributors skip the 1% Social Security Tax band entirely.
Step 4 — Select your gender. Women with only employment income get a 10% rebate on the computed tax. Then hit "Calculate" — the monthly figure is your annual take-home divided by 12.
How salary deductions work in Nepal
| Annual taxable income (NPR) | Rate |
|---|
| Up to 1,000,000 | 1% (Social Security Tax) |
| 1,000,001 – 1,500,000 | 10% |
| 1,500,001 – 2,500,000 | 20% |
| 2,500,001 – 4,000,000 | 27% |
| Above 4,000,000 | 29% |
The 1% first band is waived for SSF contributors. Women with only employment income get a 10% rebate on computed tax. SSF (11% of basic) is deductible up to NPR 500,000/year. Tax year runs mid-July to mid-July.
Worked examples
Example 1 — NPR 1,200,000/year (basic 800,000, SSF contributor): SSF = 11% × 800,000 = NPR 88,000. Taxable = 1,112,000. Tax (SSF contributor, no 1% band) = 10% × 112,000 = NPR 11,200/year. Monthly take-home = (1,200,000 − 88,000 − 11,200) ÷ 12 ≈ NPR 91,733.
Example 2 — NPR 3,000,000/year (basic 2,000,000, SSF contributor, woman): SSF = NPR 220,000. Taxable = 2,780,000. Tax = 50,000 + 200,000 + 27% × 280,000 = NPR 325,600; 10% women's rebate → NPR 293,040. Monthly take-home = (3,000,000 − 220,000 − 293,040) ÷ 12 ≈ NPR 207,247.
Common mistakes
1. SSF on gross salary. The 11% applies to basic salary only — the most common payroll error in Nepal.
2. The old dual slab system. Finance Act 2083 unified the slabs (1%/10%/20%/27%/29%) — old married/single tables are obsolete.
3. Missing the reliefs. SSF contributors skip the 1% SST band, and women with only employment income get a 10% rebate — both are frequently forgotten.
Deductions explained: SSF, slabs, reliefs
Nepal's FY 2083/84 system: first, SSF: 11% of your basic salary only (10% pension + 1% SST) — the employer adds 20% — deductible up to NPR 500,000/year. Second, the unified slabs (1%/10%/20%/27%/29%) on the remainder. Two reliefs matter: SSF contributors skip the 1% band entirely (it's a Social Security Tax for non-contributors), and women with only employment income get a 10% rebate on the computed tax. Nepal's tax year runs mid-July to mid-July, so "2026" figures apply to FY 2083/84.
Sources & verification
Figures compiled from: Inland Revenue Department Nepal.
Last verified: 23 October 2026.