🇺🇬 Uganda · Guide
How Income Tax Works in Uganda
Uganda withholds PAYE from salaries monthly. From 1 July 2026, new bands apply: the tax-free threshold rose from UGX 235,000 to UGX 335,000. Unlike Tanzania, Uganda taxes your full gross — NSSF does not reduce taxable income.
The 2026 PAYE bands (monthly, from 1 July 2026)
| Monthly chargeable income (UGX) | Rate |
|---|---|
| 0 – 335,000 | 0% |
| 335,001 – 410,000 | 20% |
| 410,001 – 485,000 | 25% |
| 485,001 – 10,000,000 | 30% |
| Above 10,000,000 | 40% (30% + 10% surcharge) |
Worked example
Monthly salary of UGX 2,000,000: PAYE = 33,750 + 30% × (2,000,000 − 485,000) = UGX 488,250. NSSF = 5% × 2,000,000 = UGX 100,000. Take-home = 2,000,000 − 488,250 − 100,000 = UGX 1,411,750.
NSSF
Employees contribute 5% of gross salary (employer 10%) to the National Social Security Fund — deducted after PAYE, not before.
Try it: Uganda salary calculator →
Sources: Uganda Revenue Authority (ura.go.ug), NSSF Uganda (nssfug.org). Estimate only — not tax advice.