Is this the official IRD tax calculator?
No. This is an independent calculator built by NepalHRM and is not affiliated with, endorsed by or operated by the Inland Revenue Department. The department publishes its own tools and the tax legislation at ird.gov.np. What this site guarantees is the rules it implements: the Income Tax Act 2058 as amended and the Finance Act 2083 schedule, checked against the Act on 5 August 2026.
It is worth being blunt about this, because “IRD tax calculator” returns a long list of sites and very few of them say which they are. A calculator does not become official by naming the authority in its title. What it can honestly offer is a named source for every figure, a stated date those figures were checked, and a named person who checked them — all three are on this page and on every other page of this site.
What is the IRD in Nepal?
The Inland Revenue Department is the tax authority of Nepal, under the Ministry of Finance. It administers income tax, value added tax and excise; it issues the PAN every taxpayer is identified by; it runs the taxpayer portal that returns and withholding statements are filed through; and it publishes the acts, rules and directives every Nepali tax calculation is built on.
For a salaried person the department is usually invisible: the employer withholds the tax, files the statement against your PAN and hands you a certificate at the year end, and nothing needs doing. It stops being invisible the moment you have a second source of income, change jobs mid-year, or need a tax clearance certificate — and then everything happens on its portal.
Which IRD rules does this calculator use?
The FY 2083/84 schedule as enacted: bands of 1%, 10%, 20%, 27%, 29%, one schedule for everyone; a combined NPR 5,00,000 ceiling shared by Provident Fund, Social Security Fund and Citizen Investment Trust; life insurance relief to NPR 40,000 and health insurance to NPR 20,000; the 1% Social Security Tax band waived for SSF members; and a 10% rebate on the computed tax of a resident woman with employment income.
| 0 – NPR 10,00,000Social Security Tax — not charged to SSF members | 1% |
|---|---|
| 10,00,000 – NPR 15,00,000 | 10% |
| 15,00,000 – NPR 25,00,000 | 20% |
| 25,00,000 – NPR 40,00,000 | 27% |
| Above NPR 40,00,000 | 29% |
Those bands are marginal: each rate touches only the slice of income inside its own band, so a raise never costs more than it pays. The full slab tables carry the same figures for FY 2082/83 and 2081/82 as well, with the tax due at each income spelled out, and the deductions page prices every relief above.
Where the numbers come from
What can only the IRD taxpayer portal do?
Everything that is a filing rather than a calculation. Registering for a PAN, filing an income tax return, submitting the withholding statement your employer files against your PAN, paying tax, and obtaining a tax clearance certificate all happen on the Inland Revenue Department portal and nowhere else. No calculator, this one included, files anything on your behalf.
- PAN registration. The identifier every rupee of withheld tax is credited against, which is why a salaried person needs one even when they never file.
- Filing an income tax return. Required of some salaried people and not others. Whether you are one of them turns on what else you earned, and the deadline is set by the Act rather than by your employer.
- The withholding statement. Your employer files it there, employee by employee — see the TDS calculator for what it contains.
- Paying tax, and tax clearance. Both run through the portal, and a clearance certificate is issued from it.
Why does this figure differ from the one my employer gives?
Almost always because the two of you disagree on an input, not on the law. The usual culprits are a taxable allowance one side counted and the other did not, a festival bonus, the employer retirement contribution being left out of assessable income, a mid-year raise spread differently, or relief declared to payroll after the year had already started.
The way to settle it is to put both sets of inputs side by side rather than to argue about the output. Take your payslip, enter exactly what it shows — gross, allowances, the fund you are in, your basic salary, the months you will be paid this year — and compare the annual figure, not the monthly one. Monthly withholding differs legitimately between two payrolls that agree on the year; the year is the number the Act actually assesses.
If the year still disagrees, the difference is an input, and the calculator names every one it used in its own breakdown. Where money turns on the answer, take both to a registered accountant — this site is an estimate, not tax advice, and says so on every page.
Sources
- Inland Revenue Department
The department itself: legislation, its own tools, and the taxpayer portal.
- Income Tax Act 2058
The Act every figure on this page is computed from, as amended.
- Ministry of Finance
The Finance Act that sets each year's schedule, and the budget it arrives in.