Nepal House Rent & Rental Income Tax Calculator

House rent tax in Nepal is a tax collected on rental income from property. Nepal has two separate systems: (1) Municipal House Rent Tax — a flat percentage (10% in Kathmandu) collected by your ward office when an individual rents to another individual, and (2) Federal TDS on Rent — a 10% withholding deducted by the company tenant under Section 88 of the Income Tax Act 2058. Which one applies depends on who is paying the rent.

For individual landlords renting to individual tenants, multiply your annual rent by the municipal rate (10% in Kathmandu). For example, NPR 25,000/month × 12 = NPR 300,000 annual rent × 10% = NPR 30,000 tax. If a company pays your rent, they deduct 10% TDS before paying you. Use this calculator for an instant estimate.

Yes. For individual landlords renting to individuals, municipal house rent tax applies (10% in Kathmandu). For individual landlords whose tenants are companies, 10% federal TDS is deducted. Both are final taxes — the rent does not enter your personal income tax slab. For corporate landlords, rental income is part of business income taxed at 25%.

The standard municipal rate in Kathmandu is 10% of gross annual rent. Across Nepal, rates range from 10% to 17% depending on the municipality. For company tenants, the federal TDS rate is 10%. These rates have not changed in FY 2083/84.

Yes. House rent tax (municipal) is a separate local tax collected by the ward office. Income tax is a federal tax collected by IRD. For individual landlords, house rent tax is a final tax — the rental income does not enter your income tax slab. Income tax only applies if you are in the property-letting business or are a corporate landlord.

Yes. Different municipalities charge different rates, ranging from 10% to 17% of gross annual rent. Kathmandu charges 10%. If your municipality rate is not verified in this calculator, the default rate is used. Always confirm your actual municipality rate at your ward office.

For the municipal house rent tax, the rate is the same whether the property is residential or commercial. However, commercial rent may attract 13% VAT if the landlord's commercial-rent turnover exceeds NPR 30 lakh. The property type does not change the house rent tax calculation itself.

For individual-to-individual rent, you declare and pay municipal house rent tax at your ward office via self-declaration (swagoshana). For company-paid rent, the company deducts TDS and provides you a TDS certificate (Form-TDS-S). No separate IRD filing is needed for the final tax.

TDS (Tax Deducted at Source) on rent is a 10% withholding that applies when a company, business, NGO, or government body pays rent to an individual landlord. Under Section 88 of the Income Tax Act 2058, the tenant deducts this before payment and deposits it with IRD. Under Section 92, this is the final tax — no further filing needed by the landlord.

This calculator provides estimates based on currently available information. Your actual tax may differ due to: different municipal rates not yet verified, special exemptions, additional local charges, or changes in government rules. Always confirm with your ward office or IRD Nepal.