WorldTax Compareโ† All Comparisons

United Kingdom vs Nepal
Tax Rate Comparison

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

๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom
vs
๐Ÿ‡ณ๐Ÿ‡ต Nepal
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“45%
Thresholds remain frozen; fiscal drag continuing
No change
1โ€“36%
36% top; remittance economy significant
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
0โ€“20%
Standard 20% maintained
No change
13%
13% stable
No change
Corporate Tax Rate
Corporate Tax Rate
19โ€“25%
25% main rate; possible future reform discussions
No change
25%
25%; Pillar Two for qualifying MNCs
No change
Capital Gains Tax
Capital Gains Tax
18โ€“24%
Post-Oct 2024 rates in full effect
No change
5โ€“10%
5%/10% maintained
No change
Social Security & Payroll
Social Security / Payroll
~28.3%
15% employer NI; lower secondary threshold remains
No change
~31%
SSF and EPF; coverage expanding
No change
State, Regional & Local Taxes

๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom โ€” Devolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically ยฃ1,200โ€“ยฃ4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

๐Ÿ‡ณ๐Ÿ‡ต Nepal โ€” Province & 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.

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

United Kingdom vs Nepal: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฌ๐Ÿ‡ง United Kingdom has a higher top income tax rate (0โ€“45% vs 1โ€“36%). ๐Ÿ‡ณ๐Ÿ‡ต Nepal is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: United Kingdom has a higher consumption tax (0โ€“20% vs 13%).

๐Ÿข Corporate Tax: Corporate rates are similar in both countries (19โ€“25% vs 25%).

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ณ๐Ÿ‡ต Nepal taxes investment gains at a lower rate (10% vs 24%), benefiting investors.

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