Pay & working terms · 5 min read
How to calculate PAYE in Uganda from your salary: 2026/27 rates with examples
You pay no PAYE on the first UGX 335,000 a month. For pay between 485,000 and 10,000,000, PAYE is 30% of your pay minus 111,750, so a salary of 1,500,000 pays UGX 338,250.
PAYE in Uganda is worked out on your monthly income using URA's bands, which changed on 1 July 2026. Nothing is due up to UGX 335,000. Above that the rate climbs from 20% to 25% to 30%, and there's an extra 10% on anything over 10,000,000. This guide shows the bands, a quick formula, full worked examples and what to do if your employer is still using the old rates.
The PAYE rates from 1 July 2026
These are URA's bands for a resident employee, set by the Income Tax (Amendment) Act, 2026. They apply to your chargeable income for the month.
Up to 335,000: nil 335,001 to 410,000: 20% of the amount over 335,000 410,001 to 485,000: 15,000 + 25% of the amount over 410,000 485,001 to 10,000,000: 33,750 + 30% of the amount over 485,000 Above 10,000,000: the line above, plus 10% of the amount over 10,000,000
Before July 2026 the tax free band stopped at 235,000. The change is worth real money. URA's own example shows that chargeable income of 1,000,000 paid 202,000 on the old rates and pays 188,250 on the new ones, and 500,000 went from 52,000 to 38,250.
A quick formula for most salaries
If your chargeable income is between 485,000 and 10,000,000, you can skip the bands:
PAYE = 30% of income - 111,750 Example on 1,000,000: 300,000 - 111,750 = UGX 188,250
Above 10,000,000 the shortcut is 40% of income minus 1,111,750. On 12,000,000 that's 4,800,000 minus 1,111,750, which is UGX 3,688,250. These shortcuts are our own arithmetic from URA's bands and they give the same answer.
Worked example: a salary of UGX 1,500,000
Take a resident on UGX 1,500,000 a month with one employer, in a month with no Local Service Tax, which is usually November to June.
Chargeable income: 1,500,000 Amount above 485,000: 1,015,000 30% of that: 304,500 Add the 33,750 from the lower bands PAYE: 338,250 NSSF, your 5%: 75,000 Take-home: 1,500,000 - 338,250 - 75,000 = UGX 1,086,750
Notice that NSSF comes off your take-home but doesn't reduce your PAYE. URA says the employee's own contribution remains taxable.
PAYE at common salaries
All figures are for a resident on regular monthly pay, in a month without Local Service Tax, and they assume you're an NSSF member.
300,000: PAYE 0, NSSF 15,000, take-home 285,000 400,000: PAYE 13,000, NSSF 20,000, take-home 367,000 500,000: PAYE 38,250, NSSF 25,000, take-home 436,750 700,000: PAYE 98,250, NSSF 35,000, take-home 566,750 1,000,000: PAYE 188,250, NSSF 50,000, take-home 761,750 2,000,000: PAYE 488,250, NSSF 100,000, take-home 1,411,750 5,000,000: PAYE 1,388,250, NSSF 250,000, take-home 3,361,750
What goes into chargeable income
URA taxes more than your basic salary. Wages, leave pay, overtime, fees, commission, gratuity and bonuses all count, and so do travelling, entertainment, utilities, cost of living, housing and medical allowances. Benefits in kind count as well.
Some things stay out. URA lists pension, medical expenses your employer pays or reimburses, official duty expenses, meals given to all staff on equal terms at the workplace, and benefits worth under Shs. 10,000 in the month. Your employer's 10% to NSSF isn't taxed as your income.
July to October: Local Service Tax lowers PAYE a little
URA says Local Service Tax is deducted before tax is computed. KCCA's published notice says employers may take it in four equal instalments in the first four months of the financial year. So in those months your chargeable income is a little lower.
Local Service Tax for the year: 100,000 This month's instalment: 25,000 Chargeable income: 1,475,000 PAYE: 33,750 + 30% of 990,000 = 330,750 NSSF: 75,000 Take-home: UGX 1,069,250
If your employer used the old rates in July or August 2026
URA published a notice on 7 September 2026 about returns for July and August that were filed at the old rates. It says employers are obliged to refund the overpaid tax to the affected employees, and that this may be done through an adjustment to later payrolls.
To check, compare your July or August 2026 payslip with the tables above. If your pay was above 485,000, URA's two examples both show a gap of 13,750. Someone on 500,000 who paid 52,000 in July should have paid 38,250. If you see that, ask payroll in writing when the refund will reach you.
A second job, and non-residents
URA says part time earnings are taxed at a flat 30% of the gross amount, or 40% if you earn more than 10,000,000 with your main employer. You may file a return to claim back any overpaid tax. If you have one employer who taxes you fully at source, you don't have to file a return.
Non-resident employees get no tax free band. URA charges 10% up to 335,000, then 33,500 plus 20% of the excess up to 410,000, then 48,500 plus 30% of the excess over 410,000, with the extra 10% above 10,000,000.
Sources and further reading
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Frequently asked questions
How much salary is tax free in Uganda?
For a resident, the first UGX 335,000 of chargeable income each month has no PAYE. That's UGX 4,020,000 a year.
How much PAYE do I pay on UGX 1,000,000?
UGX 188,250 a month in a month without Local Service Tax. That's URA's own figure for chargeable income of 1,000,000.
Does NSSF reduce PAYE in Uganda?
No. URA says your own contribution remains taxable. PAYE is worked out first on your gross pay, and your 5% then comes off your take-home.
When must my employer pay PAYE to URA?
URA says employers must remit and file by the 15th day of the following month.