Choose the income category and the period covered by your amounts. From 1 July 2026 resident monthly chargeable income up to UGX 335,000 is exempt; subsequent bands are 20%, 25%, 30% and a further 10% above UGX 10 million. Non-resident rates remain separate. The September 2026 URA notice confirms that employers must correct affected July/August returns and refund excess deductions.

Formula

Ordinary income tax uses progressive bands on chargeable income. Resident rental tax = 12% × max(annual gross rent − UGX 2,820,000, 0); non-resident rental tax = 15% of gross rent. Employment cash after deductions = salary + secondary cash income − estimated PAYE − employee NSSF − other cash deductions.

Examples

Resident PAYE, new table

Monthly salary UGX 500,000, no adjustments: PAYE 38,250. Optional employee NSSF 25,000 leaves cash 436,750 before other deductions.

A PRACTICAL GUIDE

When to use this calculator

The calculator separates PAYE, annual income, eligible presumptive business and rental-tax situations. It is useful when the word income covers several different receipts, because rental proceeds and employment earnings should not automatically be combined under the same calculation method.

Information to prepare

Confirm the period, residence status and income category before entering amounts. In employment mode, distinguish secondary cash income, PAYE and actual deductions. For rental or business modes, check the relevant eligibility conditions and whether the requested base is gross receipts or chargeable income.

How to interpret the result

Gross income, taxable income and tax liability are different quantities. A deduction can change the tax base, while a credit or prior payment can change liability or the remaining balance. Under progressive bands, the marginal rate does not necessarily apply to the whole income. An effective rate depends on the denominator used: gross receipts, net income and taxable income can produce different percentages. Read the component labels and included reliefs before treating an effective percentage as a rate for another income scenario.

A practical comparison

Compare like-for-like periods and inspect each tax component before using the final cash amount. A rental-tax result is not a payroll withholding estimate, and a presumptive calculation does not apply to every business. Use the VAT page to examine the tax on a particular sale or invoice.

Check your calculation step by step

  1. Match the figures to the selected period and use UGX for monetary inputs. If you start with a document in another currency or covering several periods, resolve that difference before entering a combined amount.
  2. Calculate the documented case first. Then change one input at a time to compare scenarios. Keep the original values available so a change in the result can be traced to a particular assumption rather than several simultaneous edits.
  3. Read the component breakdown alongside the formula and examples below. If an official document differs, check the date, base, rounding and omitted concepts before changing a rate or treating the difference as an error.

Continue with a related calculation

These tools cover other questions in Uganda. Choose the one that matches the amount you want to check:

  • Uganda VAT calculator

    Ugandan VAT at 18%, July 2026 EFRIS withholding exception, customs bases and reverse VAT paid separately from the supplier.

If you are comparing countries

Open the relevant jurisdiction when comparing a move, an offer or a transaction abroad. Each tool uses its own currency, period and scope; its result should not be substituted into the current calculation.

Explore all calculators for Uganda

Frequently asked questions

What changed for a UGX 500,000 monthly salary?

Resident PAYE is UGX 38,250 under the new table, compared with UGX 52,000 previously. The UGX 13,750 difference is the URA notice’s example. Select 2025–26 only for the prior fiscal year.

Does annual mode use monthly thresholds?

No. Annual individual tax uses annual bands. The employment annual projection assumes twelve equal months in the selected fiscal year, including contributions entered on the same annual basis.

Is secondary employment withholding final?

No. The form estimates 30% withholding on the entered secondary cash earnings. A person with multiple income sources reconciles ordinary income and creditable payments in the annual return.

Can any business pay presumptive tax?

No. It requires resident status, eligible activity and annual turnover no higher than UGX 150 million. Professional, construction, public utility and public entertainment services are excluded. Above the limit, calculate tax on chargeable profit, not a flat percentage of sales.

Did the resident rental allowance rise with the new PAYE threshold?

No. Rental tax has its own annual UGX 2,820,000 allowance and no individual expense deduction. The 2026 option for monthly provisional returns does not turn that annual allowance into a monthly one.

CHECK THE REFERENCES

Official sources