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SBSaroj Bhandari
Accounting Tips2026-07-15·2 min read

Nepal Personal Income Tax Slabs: Before vs After (FY 2082/83 vs FY 2083/84)

The Government of Nepal has introduced significant changes to the personal income tax system for FY 2083/84 (2026/27). The Finance Act 2083 removes the separate tax slabs for single and married taxpayers, introduces a unified tax structure for all resident individuals, and revises the income tax rates. In this article, you'll find a clear comparison of the old and new tax slabs, key changes, practical implications, and what every taxpayer, employee, accountant, and business owner should know.

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Saroj Bhandari

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Nepal Personal Income Tax Slabs: Before vs After (FY 2082/83 vs FY 2083/84)

Introduction

The Government of Nepal has introduced significant changes to the personal income tax structure through the Finance Act 2083 (FY 2083/84). One of the most notable reforms is the removal of separate tax slabs for single and married (couple) taxpayers.

Instead, a single tax rate schedule now applies to all resident natural persons earning remuneration income.

In this article, we'll compare the previous tax slabs with the new tax slabs and explain what these changes mean for taxpayers.

Previous Personal Income Tax Slabs (FY 2082/83) For Single Individuals Taxable Income Tax Rate First Rs. 500,000 1%* Next Rs. 200,000 10% Next Rs. 300,000 20% Next Rs. 1,000,000 30% Next Rs. 3,000,000 36% Above Rs. 5,000,000 39% For Married (Couple) Taxable Income Tax Rate First Rs. 600,000 1%* Next Rs. 200,000 10% Next Rs. 300,000 20% Next Rs. 900,000 30% Next Rs. 3,000,000 36% Above Rs. 5,000,000 39%

Under the previous system, married taxpayers enjoyed a higher first tax slab than single taxpayers.

New Personal Income Tax Slabs (FY 2083/84)

The Finance Act 2083 has introduced a unified tax schedule for all resident natural persons.

Taxable Income Tax Rate First Rs. 1,000,000 1%* Next Rs. 500,000 10% Next Rs. 1,000,000 20% Next Rs. 1,500,000 27% Above Rs. 4,000,000 29%** Before vs After Previous System New System Separate slabs for Single and Couple One common slab for everyone First slab: Rs. 500,000 (Single) First slab: Rs. 1,000,000 First slab: Rs. 600,000 (Couple) Same for all taxpayers Maximum tax rate: 39% Maximum tax rate: 29% (27% + additional 2% above Rs. 4 million) Major Changes

  1. Single and Couple Classification Removed

One of the biggest reforms is the elimination of separate tax slabs for single and married taxpayers.

Everyone now follows the same tax schedule.

  1. Larger First Tax Slab

The tax threshold for the first slab has increased to Rs. 1,000,000, simplifying the tax structure.

  1. Reduced Higher Tax Rates

The previous higher rates of 30%, 36%, and 39% have been replaced with 27% and 29%.

  1. Simpler Tax Calculation

A single tax schedule makes payroll processing, tax planning, and income tax calculation easier for employers and taxpayers.

Important Notes The 1% in the first slab is a Social Security Tax deposited into a separate revenue account. Certain taxpayers, such as eligible sole proprietors and pension-income recipients, are not subject to this 1% social security tax under the specified conditions. The 29% rate consists of the normal 27% plus an additional 2% on taxable income above Rs. 4 million. Summary

The Finance Act 2083 simplifies Nepal's personal income tax system by replacing separate tax slabs for single and married individuals with one unified schedule. It also reduces the highest applicable rates and makes tax calculation easier for individuals and employers.

Taxpayers should review the new slabs carefully when calculating salary tax, preparing income tax returns, or planning their finances for FY 2083/84.

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