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India vs Nepal
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇮🇳 India
vs
🇳🇵 Nepal
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–30%
Zero tax slab expanded; new regime standard
No change
1–36%
36% top; remittance economy significant
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–28%
Further GST rationalization expected
No change
13%
13% stable
No change

Corporate Tax Rate

Corporate Tax Rate
22–25%
Pillar Two domestic rules being finalized
No change
25%
25%; Pillar Two for qualifying MNCs
No change

Capital Gains Tax

Capital Gains Tax
12.5–20%
12.5% LTCG equity; 20% property with indexation
No change
5–10%
5%/10% maintained
No change

Social Security & Payroll

Social Security / Payroll
24%
New social security code implementation ongoing
No change
~31%
SSF and EPF; coverage expanding
No change
State, Regional & Local Taxes

🇮🇳 IndiaState, Professional & GST Variation

India's 28 states levy professional tax (up to ₹2,500/year), stamp duty on property (3%–8%), and state excise on alcohol. GST has largely unified indirect taxes but petroleum products remain state-controlled. Property tax (nagar nigam) varies by city. Maharashtra, Karnataka, and Tamil Nadu have higher professional taxes.

🇳🇵 NepalProvince & Local Government Taxes

Nepal's 7 provinces and 753 local governments (metropolitan, sub-metropolitan, municipal, and rural municipal) have significant constitutional taxing powers under the 2015 federal constitution. Local governments levy entertainment tax, advertisement tax, house/land registration tax, and tourism fees. Provinces can levy vehicle tax and some business taxes. The Inland Revenue Department (IRD) administers federal taxes. Nepal's tax system has evolved significantly under federalism since 2017.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

India vs Nepal: Key Tax Differences (2026)

💰 Income Tax: 🇳🇵 Nepal has a higher top income tax rate (0–30% vs 1–36%). 🇮🇳 India is more favourable for high earners.

🛒 VAT/Sales Tax: India has a higher consumption tax (0–28% vs 13%).

🏢 Corporate Tax: Corporate rates are similar in both countries (22–25% vs 25%).

📈 Capital Gains: 🇳🇵 Nepal taxes investment gains at a lower rate (10% vs 20%), benefiting investors.

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