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Nepal uses a 13% VAT on most goods and services plus progressive income tax with brackets from 1% to 36% for resident individuals.
Value Added Tax in Nepal is 13% on most goods and services. A handful of categories — basic foodstuffs, education, public transport — are zero-rated or exempt. Businesses with annual turnover above NPR 5 million must register; smaller traders may opt in.
Resident individuals pay 1% on the first NPR 500,000 (social security tax), then 10%, 20%, 30%, and 36% on each higher slab. Married couples get NPR 100,000 added to the first three slab tops. If you contribute to the SSF, the 1% bracket drops to 0%.
The 20% surcharge on tax above NPR 5 million income, special economic-zone reliefs, and corporate-tax reductions for export and IT firms aren't modelled here. Always check with a chartered accountant before filing.
Nepal's standard VAT rate is 13% and applies to most goods and services. A handful of categories — basic foodstuffs, education, public transport, financial services — are zero-rated or exempt. Businesses with turnover above NPR 5 million must register for VAT; smaller traders can register voluntarily.
Resident individuals are taxed progressively. For single filers the first NPR 500,000 is taxed at 1% (the social security tax), then 10% to NPR 700,000, 20% to NPR 1,000,000, 30% to NPR 2,000,000, and 36% above that. Married couples get higher first-three thresholds. An additional 20% surcharge applies on tax payable above NPR 5,000,000 income.
Married couples filing as a single unit get NPR 100,000 added to the top of each of the first three brackets. The result: a married filer pays slightly less tax on the same gross income up to about NPR 1.1 million.
If you contribute 11% of basic salary to the Social Security Fund as a registered employee, the first 1% social security tax bracket drops to 0%. The SSF contribution itself is also deductible against your taxable income.
No. It's an educational tool that uses the FY 2081/82 brackets published by the Inland Revenue Department. Always verify with a chartered accountant or the IRD before filing.
For information only — not financial, tax, or legal advice.
Nepal tax results are educational estimates using public brackets. Surcharges, cess, state / provincial layers, and most credits are excluded. Always verify with an official source and a licensed professional before filing, borrowing, or transacting. Read the full disclaimer.
ExpenseFlow tags every receipt with its tax breakdown automatically — OCR, categorization, and reports included.
