NP · Asia · NPR
Nepal
Tax rates
Income Tax
30%
Top rate, progressive scale
Corporate Tax
25%
Statutory rate
Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01VAT
13%
Standard rate
Source: Value Added Tax Act, 2052 (1995), as amended — Inland Revenue Department, Nepal · as of 2005-01-01Capital Gains Tax
5%
Wealth Tax
0%
Not levied
Source: Inland Revenue Department, Nepal — official site (list of administered tax laws) · as of 2026-07-18
No verified data yet for: Crypto Tax.
Estimate your income tax
Enter a gross annual salary to estimate 2026 national income tax for Nepal using verified brackets — total tax, effective and marginal rate, net income, and the per-band breakdown. National income tax only; social contributions and sub-national taxes are excluded unless the notes say otherwise. The full calculator covers every country with verified rates.
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Brackets, notes & in practice
Income Tax
| Threshold | Rate |
|---|---|
| NPR 0 | 1% |
| NPR 500,000 | 10% |
| NPR 700,000 | 20% |
| NPR 1,000,000 | 30% |
Schedule for a resident natural person's taxable income; there is no zero-rate band. The 1% first band, up to NPR 500,000, applies specifically to employment taxable income (with a proviso excluding certain sole-proprietorship, pension, and social-security-contribution income from this specific clause). Schedule 1 separately imposes an additional tax on top of the tax otherwise due under this schedule — a further 20% of that tax where taxable income exceeds NPR 2,000,000, rising to a further 30% where it exceeds NPR 5,000,000 — rather than a new marginal bracket.
Nepal's Income Tax Act, 2058 sets a progressive schedule for a resident natural person's taxable income, topping out at 30% above NPR 1,000,000. Schedule 1 separately imposes an additional tax on top of this schedule's rate — a further 20% of the tax otherwise payable where taxable income exceeds NPR 2,000,000, rising to a further 30% of the tax payable where it exceeds NPR 5,000,000.
VAT
Section 7(1) of the Value Added Tax Act, 2052 sets a single VAT rate of 13%, with a zero rate for supplies listed in the Act's second schedule.
In practice
- Filing
A registered person must self-assess and file a VAT return every month, within 25 days after the month ends, even for months with no taxable transactions. The Act separately allows government to exempt small businesses whose annual turnover stays within a prescribed limit from registering, filing returns, and completing other procedures, though that rupee figure is set by regulation rather than stated in the Act itself. Non-resident persons supplying electronic services or offline air transport services must separately register for VAT once their Nepal-sourced taxable turnover exceeds NPR 3 million (30 lakh) in the preceding twelve months, and a registered taxpayer's registration is cancelled if turnover over the preceding twelve months falls below NPR 5 million (50 lakh) for goods, or NPR 3 million (30 lakh) for a mixed goods-and-services or services-only business.
Source: Value Added Tax Act, 2052 (1995), as amended — Inland Revenue Department, Nepal · as of 2025-12-31- Exemptions
Schedule 1 of the VAT Act exempts categories including basic agricultural products and foodstuffs, health and medical treatment, education, books and newspapers, passenger transport, financial and insurance services, and the sale or rental of buildings and land, with no output VAT charged and no input-tax credit or refund allowed. Schedule 2 separately zero-rates exports of goods, services supplied to persons outside Nepal, and certain diplomatic and project-related imports, for which input VAT remains recoverable.
Source: Value Added Tax Act, 2052 (1995), as amended — Inland Revenue Department, Nepal · as of 2025-12-31
Capital Gains Tax
An individual's gains from disposing of an interest in a company listed with the Nepal Securities Board are subject to advance tax collected by the securities exchange at 5% where the interest was held for more than 365 days, or 7.5% where held for 365 days or less. Gains on interests in unlisted companies are instead taxed at a flat 10% for resident individuals.
Wealth Tax
No net wealth tax is identified in Nepal's tax framework. Nepal's official Inland Revenue Department site lists its administered acts as the Income Tax Act, Value Added Tax Act, Excise Act, Liquor Act, Digital Service Tax, a capital gains tax on land and property, and the Revenue Tribunal Act, with no wealth or net-worth tax law among them.