Nepal Rent & Rental Income Tax Calculator
Estimate rental income, applicable tax, deductions, and your take-home rental income in Nepal.
Calculator mode
Rent input
Enter the rent you receive each month.
Property 1
Rental Income Deductions
Note: Standard deduction availability is being verified against current Nepal tax rules. If not available, no deduction will be applied.
Only enter expenses allowed under applicable tax rules. Deductions need verification with IRD Nepal.
Only enter expenses allowed under applicable tax rules.
Estimated Net Rental Income
per month
Monthly Breakdown
Annual Breakdown
How is this calculated?
Disclaimer
This calculator provides an estimate based on the information provided and applicable tax rules. Actual tax or rental-related charges may differ depending on your taxpayer status, property, location, deductions, and current government rules.
Rental tax rules last verified: 2026-08-19 · Sources: Inland Revenue Department, Income Tax Act 2058, Finance Act 2083
Note: Deduction rules and TDS applicability need verification against current official IRD guidance.
How Rental Income Tax Works in Nepal
How is rental income taxed in Nepal?
Rental income in Nepal is classified as "Income from House/Property" under Section 14 of the Income Tax Act 2058. For individual taxpayers, rental income is included in total taxable income and taxed at the same progressive rates as salary income. The current rates under Finance Act 2083 start at 1% for income up to NPR 500,000 and increase to 36% for income above NPR 2,000,000.
How do I calculate rental income?
What is taxable rental income?
Taxable rental income is your gross rental income minus any deductions allowed under Nepal tax law. For example, if your annual rent is NPR 300,000 and you have NPR 20,000 in allowable deductions, your taxable rental income is NPR 280,000.
What deductions are allowed from rental income?
Under Nepal Income Tax Act 2058, allowable deductions from rental income may include: property tax paid to municipality, insurance premiums for the property, and repair/maintenance expenses (subject to caps). The exact deductions and their limits should be verified with IRD Nepal.
What is rental TDS?
TDS (Tax Deducted at Source) on rent is a 5% withholding that applies when rent is paid by government bodies, companies, or other specified entities. The tenant deducts this amount and deposits it with the government. This is not an additional tax — it is a pre-payment against your tax liability.
Do landlords have to pay rental tax?
Frequently Asked Questions
What is rental income?
Rental income is the money you receive from renting out your property — such as a house, apartment, room, shop, or office. In Nepal, this is classified as "Income from House/Property" under the Income Tax Act 2058.
How is rental income taxed in Nepal?
Rental income is included in your total taxable income and taxed at the same progressive rates as salary income: 1% up to NPR 500,000, 10% up to NPR 700,000, 20% up to NPR 1,000,000, 30% up to NPR 2,000,000, and 36% above that. This is based on Finance Act 2083.
How do I calculate house rent tax?
To calculate house rent tax: (1) Determine your annual rental income, (2) Subtract any allowable deductions (property tax, insurance, repairs), (3) Apply the progressive tax rates to the taxable amount. This calculator does this automatically.
Is rental income taxable in Nepal?
Yes, rental income is taxable in Nepal. It is classified as "Income from House/Property" under Section 14 of the Income Tax Act 2058 and must be included in your annual tax return.
What is rental income TDS?
TDS (Tax Deducted at Source) on rent is a 5% withholding that applies when rent is paid by government bodies, companies, or other specified entities. The tenant deducts this amount and pays it to the government on your behalf.
Can I deduct property expenses from rental income?
Under Nepal tax rules, certain expenses may be deductible from rental income, including property tax, insurance premiums, and repair/maintenance costs. The exact deductions and their limits should be verified with IRD Nepal.
Does rental tax differ by municipality?
The income tax on rental income is a national tax and does not vary by municipality. However, local/municipal governments may levy separate property taxes. This calculator focuses on national income tax on rental income.
How is monthly rent converted into annual income?
Simply multiply your monthly rent by 12 to get your annual gross rental income. For example, NPR 25,000/month × 12 = NPR 300,000/year.
Can I calculate tax for multiple properties?
Yes, you can add multiple properties in the Detailed Calculator mode. Each property's rent is calculated separately, and the total is used for tax calculation.
Why can my actual tax differ from this calculator?
This calculator provides estimates. Your actual tax may differ due to other income sources, special exemptions, changes in tax rules, or the specific treatment of deductions. Always verify with IRD Nepal or a tax professional.