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.