Nepal Personal Income Tax
Detailed personal income tax rates and rules for Nepal in 2026.
Nepal's personal income tax applies progressive rates from 1% to 36%. A social security tax of 1% applies on the first NPR 500,000 of income. Residents are taxed on worldwide income. Single individuals and married couples have different bracket thresholds (couples receive wider brackets). An additional 20% surcharge applies to income exceeding NPR 5 million.
| Income Range (NPR) | Tax Rate |
|---|---|
| Rs 0 – Rs 500K | 1% |
| Rs 500K – Rs 700K | 10% |
| Rs 700K – Rs 1.0M | 20% |
| Rs 1.0M – Rs 2.0M | 30% |
| Rs 2.0M+ | 36% |
Filing Deadline
Within 3 months of the end of the income year
Residency Rule
An individual with a permanent residence in Nepal or present for 183 days or more in a year is a resident. Residents are taxed on worldwide income.
Additional Notes
Nepal's fiscal year follows the Nepali calendar (Bikram Sambat), generally running from mid-July to mid-July.
How Nepal Income Tax compares
Nepal’s top personal income tax rate of 36% is the 54th highest of 203 countries TaxAtlas tracks, above the global average of 27.7% and Asia’s regional average of 22.2%.
