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Enter your salary and deduction details to get a quick estimate of how much income tax you may need to pay in Nepal.
Total Tax Liability
0/ Month
Automate salary calculations, deductions, and payslip generation in one place.
Use the calculator to enter your salary details, select the options that apply to you, and estimate your salary tax in Nepal. The calculator then shows your taxable income, applicable tax slab, and estimated tax liability.
Start by selecting your gender. Choose the option that applies to you so the calculator can use the relevant details for your salary tax calculation.
Next, indicate whether you have a disability with 'Yes' or 'No' option. This information can affect the applicable tax calculation.
Choose how you want to enter your salary based on how your income is recorded.
Enter your applicable annual deductions to determine your taxable income. The calculator uses the deduction amount along with your salary details to estimate your tax.
Once you enter the required details, the calculator displays your estimated salary and tax breakdown. Review each result to understand how your income translates into taxable income and tax.
The final result shows your estimated total tax liability based on the salary and deduction details you entered. This gives you a quick view of your annual salary tax obligation.
A salary tax calculator estimates the income tax payable on your salary based on your income, applicable deductions, and tax slabs. It helps you understand your taxable income, tax rate, and estimated tax liability before you calculate your take-home salary.
Salary Tax Calculation Includes
| Component | What It Means |
|---|---|
| Annual Salary | Total salary earned during the year |
| Annual Deduction | Applicable deductions entered into the calculator |
| Taxable Income | Income considered for calculating salary tax |
| Tax Slab | Income tax bracket that applies to your taxable income |
| Tax Rate | Percentage applied to the relevant tax slab |
| Tax Liability | Estimated income tax payable for the year |
| Monthly Tax | Estimated tax amount payable each month |
TDS (Tax Deducted at Source) is the income tax an employer deducts from an employee’s salary and deposits with the government on the employee’s behalf. It allows salary tax to be collected throughout the year instead of being paid as one amount later.
For employees, salary tax and TDS are closely related. The salary tax calculation determines the estimated tax liability, while TDS is the amount deducted from the salary to meet that liability. In payroll, TDS appears as a deduction from gross salary, reducing the employee’s take-home pay. The deducted amount is then recorded as TDS and deposited with the relevant tax authority by the employer.
Salary tax in Nepal is calculated by first determining your annual salary, accounting for applicable deductions, and then applying the relevant income tax rates to your taxable income. The tax is calculated progressively, meaning different portions of your taxable income are taxed at different rates.
If you receive a monthly salary, multiply it by 12 to determine your annual salary. Include applicable salary components such as regular pay and other taxable employment income when determining your yearly income.
For example, a monthly salary of Rs. 50,000 gives an annual salary of Rs. 6,00,000 before applicable deductions.
Next, account for applicable deductions that can reduce the income considered for tax calculation. The deductions that apply can vary based on your income, contributions, and applicable tax provisions.
Taxable income is the amount used to calculate your salary tax after applicable deductions are considered. Your taxable income is then matched against Nepal's applicable income tax slabs.
Nepal uses a progressive tax system for salary income. This means the entire salary is not taxed at one rate. Instead, each portion of taxable income is taxed according to the slab it falls into for FY 2083/84 (2026/27).
| Tax Bracket | Tax Rate | Taxable Amount |
|---|---|---|
| First Rs. 10,00,000 | 1%* | First Rs. 10,00,000 |
| Next Rs. 5,00,000 | 10% | Rs. 10,00,001 to Rs. 15,00,000 |
| Next Rs. 10,00,000 | 20% | Rs. 15,00,001 to Rs. 25,00,000 |
| Next Rs. 15,00,000 | 27% | Rs. 25,00,001 to Rs. 40,00,000 |
| Above Rs. 40,00,000 | 29% | Above Rs. 40,00,000 |
These are marginal tax rates, so moving into a higher slab does not mean your entire taxable income is taxed at the higher rate. Only the portion that falls within each slab is taxed at that ' rate.
The main difference is what income you are trying to calculate tax on. A salary tax calculator is focused on employment salary, while an income tax calculator can cover taxable income more broadly.
| Calculator | Best For |
|---|---|
| Salary Tax Calculator | Tax on employment salary only |
| Income Tax Calculator Nepal | Tax on all taxable income, beyond salary |
For example, if you earn Rs. 80,000 per month as an employee, a salary tax calculator can estimate your annual salary, taxable income, tax slab, and salary tax.
If you need to calculate tax based on other taxable income, such as income from business, investment, rent, or other sources, an income tax calculator in Nepal is more appropriate. In simple terms, salary tax is a specific use case, while income tax is the broader calculation.
Understanding common salary tax terms makes it easier to read your salary slip, calculate tax, and understand payroll deductions.
| Term | Meaning |
|---|---|
| Gross Salary | The total salary earned before tax and other applicable deductions. |
| Basic Salary | The fixed core part of an employee’s salary, excluding allowances and other payments. |
| Allowance | An additional payment provided to an employee for specific purposes or benefits. |
| Taxable Income | The portion of income used to calculate the amount of income tax payable. |
| Income Tax | Tax charged by the government on taxable income. |
| TDS | Tax deducted from an employee’s salary by the employer and deposited with the tax authority. |
| SSF | Social Security Fund contribution made under Nepal’s social security system. |
| PF | Provident Fund contribution set aside as part of an employee’s retirement savings. |
| CIT | Citizen Investment Trust contribution made as an eligible saving or investment deduction. |
| Tax Slab | A range of taxable income to which a specific tax rate applies. |
| Tax Liability | The total amount of tax an employee is required to pay for the tax year. |
| Net Salary | The amount an employee receives after applicable tax and other deductions. |
| Tax Year | The period for which income and tax liability are calculated and reported. |
A salary tax calculator is useful for estimating tax for individual salaries. But managing payroll tax for an entire team involves salary structures, employee records, deductions, contributions, and payslips. Pace HRMS brings these tasks into one payroll system with:
Handle salary calculations, TDS, SSF, deductions, and payslips together with automated payroll.