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Salary Tax in Nepal: How It Works (Without the Jargon)

Gross vs taxable income, CIT/SSF deductions, married vs unmarried slabs, and how to estimate your tax.

By DigitalNepal · Updated 2026-10-04

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Try it right here:

Gross yearly: Rs 600,000

Taxable income: Rs 600,000

Estimated yearly tax: Rs 15,000

Take-home yearly: Rs 585,000 (~Rs 48,750/month)

Estimate only. Tax slabs, rebates and SSF/CIT rules change every budget - edit the slabs to match the current IRD notice and confirm with HR. Reviewed Oct 2026.

Your salary tax depends on yearly taxable income: gross salary plus bonus, minus approved deductions like CIT and SSF contributions. That net figure runs through progressive slabs - higher portions taxed at higher rates.

Slabs and rebates change with each budget, so always verify against the current IRD notice. The salary calculator on this site uses editable slabs for exactly this reason.

Steps

  1. 1Add up gross income

    Monthly salary times months worked, plus bonuses, allowances and festival expenses that count as income.

  2. 2Subtract approved deductions

    CIT, SSF employee contributions and approved insurance premiums reduce taxable income up to legal limits.

  3. 3Pick the right slab table

    Married and unmarried individuals have different thresholds. Use the one matching your status.

  4. 4Estimate with the calculator

    Enter your figures and compare with last year's actual deduction on your pay slip - big gaps mean something needs checking with HR.

Good to know: Keep pay slips, CIT/SSF statements and the IRD notice for the year. They make tax filing and corrections painless.

FAQ

Is bonus taxed differently?

Bonuses count as income in most cases. Include them in gross and let the slabs do the work.

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