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Nepal Rental Income Tax Calculator

Calculate tax on rental income from residential and commercial properties in Nepal. This calculator includes all applicable deductions such as property tax, maintenance, depreciation, and home loan interest according to Nepal tax laws.

Rental Income Tax Calculator

Select Property Type

Rental Income Details

Owner Details

Nepal Resident

Resident tax rates apply

Individual Owner

Not company/institution

Female Property Owner

May qualify for additional benefits

Total rental income received in a year

Deductible Expenses (Optional)

Annual property tax paid to local government

Limited to 5% of property's depreciation base

Annual property insurance premium

Property management service fees

Legal fees, advertising, etc.

Include Depreciation
Home Loan on Property
Advanced Options
Optional

Nepal Rental Income Tax Guide

Tax Rates

  • Residential: 10% flat rate
  • Commercial: 10-15% by location
  • Non-residents: 15% threshold

Key Deductions

  • 50% standard deduction (residential)
  • Property tax & insurance
  • Home loan interest (100%)

Depreciation

  • Buildings: 5% annually
  • Land: Not depreciable
  • Straight-line method

Compliance

  • File within 3 months
  • Pay at ward office
  • Keep all receipts

Tax Rates

  • Residential: 10% (residents)
  • Residential: 15% (non-residents)
  • Commercial: 10-15%
  • Companies: 25%

Standard Deduction

  • 50% for residential properties
  • Available only for individuals
  • Not for commercial properties
  • Simplifies tax calculation

Deductible Expenses

  • Property tax (100%)
  • Maintenance (up to 5%)
  • Insurance (up to Rs 20,000)
  • Home loan interest

Tax Exemption

  • Rs 5 lakh for residents
  • No exemption for non-residents
  • Depreciation at 5% p.a.
  • Female: 10% tax rebate

How to Use This Calculator

  1. Select your property type (Residential or Commercial)
  2. Choose your residency status and owner type
  3. Enter your annual rental income
  4. Add all deductible expenses (property tax, maintenance, etc.)
  5. If you have a home loan, enter the interest amount
  6. Click Calculate to see your tax liability

Important Notes

  • Standard deduction of 50% is available only for residential properties and individual owners
  • Tax must be paid at your local ward office
  • Filing deadline: Within 3 months of fiscal year end (mid-October)
  • Keep records of all expenses for at least 6 years
  • House rent paid by tenants over Rs 50,000 monthly requires TDS deduction
  • For complex situations, consult a qualified tax professional

Tax Filing Requirements

  • Where to file: Local ward office or IRD
  • When to file: By Ashwin (mid-October) for FY ending Ashad
  • Documents needed: Property papers, rental agreement, expense receipts
  • Payment method: Cash or bank deposit
  • Penalty: 1.5% per month for late filing
Nepal Rental Income Tax Calculator - House Rent Tax