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Uganda PAYE Calculator 2026

Calculate your take-home pay in Uganda using URA progressive income tax bands (0%–40%, FY 2026/27 bands effective 1 July 2026), NSSF contributions (5%, not tax-deductible), and official Local Service Tax annual bands based on take-home pay after PAYE.

🇺🇬 URA 2026/27 PAYE 0%–40% Free PDF Export
Updated 2025 · Based on Uganda Revenue Authority (URA) Income Tax Act

Also see: Uganda VAT Calculator

FY 2026/27 (from 1 July 2026): PAYE bands revised by the Income Tax (Amendment) Act 2026 — tax-free threshold raised to UGX 335,000/month and a new 25% band added. NSSF remains 5% employee contribution (NOT tax-deductible). Non-resident rate: 30% flat on employment income. Local Service Tax uses fixed annual bands based on monthly take-home after PAYE and is typically collected in the first four months of the financial year.

💰 Your Salary
Monthly Salary UGX 1,500,000
UGX 100k UGX 20M
Or enter directly UGX
UGX
Net income in Uganda depends on your gross salary, NSSF (5%), PAYE tax bands, and Local Service Tax annual bands based on monthly take-home after PAYE.
Employment Status
Resident
Progressive tax
Non-Resident
Flat 30%
Deductions & Levies
NSSF (5%)
Not deductible from tax
LST
Official annual bands
Monthly Take-Home Pay
UGX 0
Per month in Uganda
Gross: UGX 0 · Annual: UGX 0
Effective Tax Rate 0%

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PAYE Tax Bands 2026/27 ▾
UGX 0 – UGX 335,0000%
UGX 335,001 – UGX 410,00020%
UGX 410,001 – UGX 485,00025%
UGX 485,001 – UGX 10,000,00030%
Above UGX 10,000,00040%

Calculated monthly on gross salary for residents. NSSF contribution (5% of gross) is NOT deductible from PAYE taxable income in Uganda — this is a key difference from neighbouring countries. Non-residents pay flat 30% on employment income.

NSSF · LST Rates 2025 ▾
Employee NSSF contribution5% of gross (no cap)
Employer NSSF contribution10% of gross (no cap)
Local Service Tax (LST)UGX 5,000–100,000/yr by take-home band

NSSF employee contribution is NOT deductible from taxable income before PAYE calculation. This means you pay both NSSF and PAYE on the full gross salary. NSSF is paid to the National Social Security Fund (NSSF Uganda). For employees, Local Service Tax is based on monthly take-home salary after PAYE, not a flat percentage of gross pay. The annual charge ranges from UGX 5,000 to UGX 100,000 and is typically collected in four equal instalments in the first four months of the financial year.

Disclaimer: For informational purposes only. Not professional tax or legal advice. Rates based on Uganda Revenue Authority (URA) Income Tax Act, 2000 (as amended), and FY 2026/27 statutory schedules (Income Tax (Amendment) Act 2026). Verify with URA (ura.go.ug) or a qualified Ugandan tax advisor.
Uganda PAYE Calculator
Uganda PAYE Calculator
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How Uganda PAYE Tax Is Calculated 2026/27

Uganda's Pay As You Earn (PAYE) system is administered by the Uganda Revenue Authority (URA) under the Income Tax Act (Cap. 340 as amended). All employers must register with URA, deduct PAYE monthly from employee salaries, and remit it to URA by the 15th of the following month. Penalties apply for late filing and payment. Uganda's tax year runs from 1 July to 30 June, matching the Government fiscal year. Employees who receive income from a single employer below the annual threshold have their PAYE handled entirely at source.

Uganda uses a five-band progressive monthly tax structure for resident individuals, updated for FY 2026/27 (effective 1 July 2026). The first UGX 335,000 per month is completely tax-free. Income from UGX 335,001 to UGX 410,000 is taxed at 20%; UGX 410,001 to UGX 485,000 at 25%; UGX 485,001 to UGX 10,000,000 at 30%; and amounts exceeding UGX 10,000,000 per month are taxed at 40%. Non-resident individuals pay a flat rate of 30% on all Uganda-source employment income, with no tax-free band. The annual tax-free threshold for residents is UGX 4,020,000.

A notable feature of Uganda's payroll is that the National Social Security Fund (NSSF) employee contribution (5% of gross salary) is NOT deductible from taxable income. This differs from neighbouring Kenya, Tanzania, and Rwanda where social security contributions reduce the PAYE taxable base. In Uganda, PAYE is calculated on the full gross salary before NSSF deduction. The employer contributes an additional 10% of gross salary to NSSF — an employer cost separate from employee deductions. Local Service Tax (LST) is a separate annual levy based on monthly take-home salary after PAYE, with employee bands ranging from UGX 5,000 to UGX 100,000 per year and usually collected in four equal instalments in the first four months of the financial year.

Uganda's economy is one of East Africa's most diversified, with agriculture, services, and growing manufacturing sectors. The country has a population of approximately 47 million people and a GDP of around $47 billion. Mobile money via MTN MoMo is deeply embedded in Ugandan commerce and is widely used for payroll disbursement, especially in the informal sector. Uganda's VAT rate is 18%, with registration required for businesses exceeding UGX 150 million annual turnover.

Rates as of FY 2026/27, effective 1 July 2026. Verify at URA (ura.go.ug) for the latest updates.

Uganda PAYE Tax Bands 2026/27 (Monthly)

Monthly Band (UGX) Rate
0 – 335,0000%
335,001 – 410,00020%
410,001 – 485,00025%
485,001 – 10,000,00030%
Over 10,000,00040%
Uganda Tax FAQ

Common PAYE Questions

What are the Uganda PAYE tax bands for 2026/27?

Five monthly bands for residents (FY 2026/27, effective 1 July 2026): 0% on first UGX 335,000; 20% on UGX 335,001–410,000; 25% on UGX 410,001–485,000; 30% on UGX 485,001–10,000,000; 40% above UGX 10,000,000. These apply to gross salary — NSSF is not deductible. Non-residents pay flat 30% with no allowances.

Is NSSF contribution deductible from PAYE taxable income in Uganda?

No — the 5% employee NSSF contribution is NOT deductible from your gross salary for PAYE purposes. This is a fundamental difference from countries like Tanzania and Kenya. In Uganda, PAYE is calculated on the full gross salary, then NSSF (5%) is deducted from your net pay separately. You pay both taxes in full.

What is Local Service Tax (LST) in Uganda?

Local Service Tax is an annual levy charged where your monthly take-home salary after PAYE exceeds UGX 100,000. For employees it is a fixed annual amount from UGX 5,000 to UGX 100,000 depending on your take-home band, and employers usually collect it in four equal instalments during the first four months of the financial year.

How is non-resident income taxed in Uganda?

Non-residents working in Uganda pay a flat rate of 30% on all employment income. No progressive bands apply, no deductions are allowed, and NSSF contribution is still required separately. This flat 30% withholding is a final tax — employers remit it to URA as tax-at-source. Non-residents cannot claim any personal allowances.

When must employers remit PAYE to URA?

PAYE must be remitted to Uganda Revenue Authority by the 15th of the month following the payroll month. Local Service Tax for employees is assessed and remitted separately to the relevant local government during the first four months of the financial year. NSSF contributions are remitted separately to the National Social Security Fund (NSSF Uganda) portal. Employers must maintain accurate payroll records and salary schedules.

Can I reduce my Uganda income tax?

Limited options exist in Uganda's PAYE system compared to other countries. NSSF is compulsory (5%) but not deductible. Life insurance premiums may qualify for relief under certain conditions. Chargeable equipment purchased for employment may attract capital allowances. Mortgage interest on a principal residence up to UGX 20M is deductible. Consult a Ugandan tax advisor (CPA) for individual circumstances.

Official evidence

Sources & verification

This high-stakes calculator links the authority sources, method notes, test cases, and limitations used to check the numbers shown on this page.

Last verified 2026-03-28

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Official source links

Law, regulation, or version

Income Tax Act Also see: Uganda VAT Calculator FY 2026/27 (from 1 July 2026): PAYE bands revised by the Income Tax (Amendment) Act 2026 — tax-free threshold raised to UGX 335,000/month and a new

Calculation methodology

The calculator annualizes salary where needed, applies modeled employee statutory deductions, runs taxable income through the country PAYE bands, and derives net pay from gross pay minus modeled PAYE and statutory deductions. Employer-cost lines are informational where the page exposes them.

Known limitations

  • Informational estimate only. It is not professional tax, legal, payroll, or filing advice.
  • Sector-specific, regional, treaty, relief, and special-regime rules may not be fully modeled.
  • Confirm filing, registration, and remittance duties with the official authority or a qualified adviser before submission.

Test-case examples

Input: Annual gross salary: 0.
Expected: PAYE and statutory deductions should be 0 and net pay should not be negative.
Why: Establishes the zero-income baseline and catches negative liability regressions.

Input: Annual gross salary entered in the page currency.
Expected: Taxable income is processed through the visible country bands and net pay equals gross pay minus modeled deductions.
Why: Confirms the calculator is using the documented methodology rather than an opaque flat estimate.

Change history

  • 2026-05-02: Trust and verification panel added with source links, methodology, limitations, and report-error CTA.

AfroTools calculators are decision-support tools. Always confirm filing, registration, and remittance duties with the linked authority or a qualified local adviser.

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