Nepal Income Tax (TDS) on Salary: What Salaried employees pay in FY 2083/84

Author : Hajir hr | Published On : 01 Oct 2026

Understanding Nepal income tax on salary helps employees manage their earnings and helps employers maintain accurate payroll records. For FY 2083/84, Nepal follows updated income tax slabs for resident individual taxpayers.

The current tax structure applies rates from 1% to 29% across different annual taxable income levels. Taxable income can include basic salary, allowances, bonuses, and other taxable benefits. Employees can also claim eligible deductions according to applicable tax rules.

Social Security Fund (SSF), provident fund, Citizen Investment Trust, and eligible insurance contributions can affect taxable income. Therefore, employees should understand how these deductions influence their annual tax liability.

Employers calculate annual taxable income and apply the relevant tax slabs. They then divide the estimated annual tax into monthly deductions. Employers may also adjust future deductions when an employee receives a salary increase, bonus, or other changes in earnings.

For FY 2083/84, the tax structure uses a single schedule for resident individuals. The article also explains practical salary tax examples to help employees understand monthly TDS calculations.

Employers must withhold the correct tax and submit it to the Inland Revenue Department within the required deadline. They should also maintain accurate payroll and tax records for future reference.

Payroll software can simplify these tasks by automating salary calculations, deductions, TDS, SSF, bonuses, and payroll reports. Accurate payroll processing helps businesses reduce manual errors and maintain better compliance.

Overall, understanding salary tax rules helps both employees and employers manage payroll with greater accuracy and transparency.