How Uganda Income Tax (PAYE) Works in 2026: Uganda operates a Pay As You Earn (PAYE) system with 5 progressive tax brackets ranging from 0% to 40%, updated by the Income Tax (Amendment) Act 2026 effective 1 July 2026. The system includes a tax-free threshold of UGX 335,000 per month (UGX 4,020,000 annually), meaning income up to this amount is not taxed.Key components of Uganda's tax system:PAYE (Income Tax): 0-40% progressive rates based on annual incomeNSSF (National Social Security Fund): 5% employee + 10% employer (15% total)Local Service Tax (LST): charged by local governments, amounts vary, and URA treats it as deductible before PAYENon-residents: PAYE has no tax-free band: 10% on the first UGX 335,000 a month, 20% on the next UGX 75,000 (to UGX 410,000), then 30% above UGX 410,000, plus an extra 10% on monthly income above UGX 10,000,000. EAC free movement: the East African Community Common Market Protocol provides for free movement of workers among partner states, but rights, work permits and procedures vary by country. Tax residency: a person is a Uganda tax resident if they have a permanent home in Uganda, are present for 183 days or more in any 12-month period that starts or ends in the tax year, or average more than 122 days a year over the year and the two before it. Oil-sector employees are taxed under the same PAYE bands as other employees. Who pays tax in Uganda: residents pay tax on worldwide income and non-residents on Uganda-source income. Uganda's tax year runs 1 July to 30 June.Official source: Uganda Revenue Authority (URA) and PWC Uganda Tax Summary.
This hub links to every Uganda tax guide and calculator on CountryTaxCalc — covering income tax rates, and tools to calculate your take-home pay.
Uganda's income tax uses 5 PAYE brackets (0-40%) with UGX 335,000 monthly tax-free threshold (UGX 4,020,000 annually) and 5% NSSF contribution. Use the calculator to estimate your take-home pay after income tax:
| Income | Rate |
|---|---|
| UGX 0 - 4,020,000 | 0% |
| UGX 4,020,001 - 4,920,000 | 20% |
| UGX 4,920,001 - 5,820,000 | 25% |
| UGX 5,820,001 - 120,000,000 | 30% |
| Above UGX 120,000,000 | 40% |
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