PAYE Calculator Uganda 2026/27 (URA rates)
Enter a monthly or annual gross salary in UGX and see the income tax, the take-home pay and how each band applies under the 2026/27 rates.
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- Updated for 2026
- Last reviewed October 2026
- Reviewed by the Owoode team
- USh UGX
- VAT 18%
- TIN
- A4
- English
Rates: 2026/27. Bands of the Income Tax (Amendment) Act, 2026, from 1 July 2026: nil to USh 335,000 a month, then 20% to 410,000, 25% to 485,000 and 30% above, shown as annual; an extra 10% applies above USh 10 million a month. PAYE is charged on gross pay; the employee's 5% NSSF comes out afterwards (Income Tax Act s.22(3)(h); URA's worked example).
Monthly take-home pay
USh 547,250
USh 89,250 tax deducted · 13.32% effective rate · 30% marginal rate · USh 6,567,000 a year
- Monthly take-home payUSh 547,25081.7%
- TaxUSh 89,25013.3%
- NSSF (5%)USh 33,5005%
- Gross annual income
- USh 8,040,000
- Taxable income
- USh 8,040,000
- Annual income tax
- USh 1,071,000
- Less NSSF (5%)
- (USh 402,000)
- Monthly income tax
- USh 89,250
How the bands apply
| Band | Taxed | Rate | Tax |
|---|---|---|---|
| First USh 4,020,000 | USh 4,020,000 | 0% | USh 0 |
| Next USh 900,000 | USh 900,000 | 20% | USh 180,000 |
| Next USh 900,000 | USh 900,000 | 25% | USh 225,000 |
| Next USh 114,180,000 | USh 2,220,000 | 30% | USh 666,000 |
Source: URA public notice of 7 September 2026 on the Income Tax (Amendment) Act, 2026.
How employee tax is withheld
From 1 July 2026 (Income Tax (Amendment) Act, 2026), employers withhold PAYE on monthly chargeable income at these resident rates. The first UGX 335,000 is tax-free. Income from 335,001 to 410,000 is taxed at 20%. From 410,001 to 485,000, the tax is UGX 15,000 plus 25% of the excess over 410,000. From 485,001 to 10,000,000, it is UGX 33,750 plus 30% of the excess over 485,000. Above UGX 10 million a month, a further 10% is charged on the excess. The annual equivalent is a nil band up to UGX 4,020,000, then 20%, 25% and 30%, with the extra 10% above UGX 120 million.
Deduct the tax when you pay salary, then file the PAYE return and pay URA by the 15th of the following month. If you fail to withhold, you are personally liable for the tax plus penal tax and interest. You can recover the tax from the employee.
URA updated the PAYE return template for the new rates. If you filed July or August 2026 at the old rates, amend those returns with the new template. Use the resulting credit in your next PAYE return, and refund the over-deducted tax to staff.