Nepal Tax Rate 2082/83 (FY 2025/26)
Nepal’s tax structure for Fiscal Year 2082/83 follows a progressive taxation system, where individuals with higher income pay higher tax rates. The tax policies are governed by the Income Tax Act, 2058 and updated annually through the national budget presented by the Government of Nepal.
For individual taxpayers, the first tax slab is charged at 1% as Social Security Tax (SST). Single individuals earning up to NPR 500,000 annually fall under this category, while married couples receive a slightly higher exemption threshold of NPR 600,000. Income above these limits is taxed progressively at 10%, 20%, 30%, 36%, and up to 39% for very high-income earners.
The individual income tax slabs for single taxpayers are generally structured as follows:
First NPR 500,000 – 1% SST
Next NPR 200,000 – 10%
Next NPR 300,000 – 20%
Next NPR 1,000,000 – 30%
Next NPR 3,000,000 – 36%
Above NPR 5,000,000 – 39%
Corporate tax rates vary depending on the nature of the business. Most companies are taxed at 25%, while banks, insurance companies, and telecom industries are taxed at 30%. Certain sectors such as export-oriented IT companies and special industries receive tax incentives and reduced rates to encourage investment and economic growth.
The FY 2082/83 budget also focused on digital economy reforms, startup encouragement, and simplified taxation procedures. Some discussions during the budget announcement included changes in capital gains tax, digital payment taxation, and incentives for technology-based businesses.