Last verified: 16 October 2026. Payroll rules change; confirm current rates with the authority before filing, or let your OurPay specialist do it.
PAYE bands from 1 July 2026
The Income Tax (Amendment) Act, 2026 raised the monthly tax-free threshold from 235,000 to 335,000 and restructured the bands. If your payroll still uses the old figures, July onward is being over-taxed and needs correcting in a later URA return.
| Monthly chargeable income (UGX) | Rate |
|---|---|
| Up to 335,000 | 0% |
| 335,001 to 410,000 | 20% of the excess over 335,000 |
| 410,001 to 485,000 | 25% (new band) |
| Above 485,000 | 30% |
| Above 10,000,000 a month | Additional 10% on the excess |
Our payslip calculator uses these bands. Before July 2026 the bands were 0% to 235,000, 10% to 335,000, 20% to 410,000 and 30% above.
NSSF
Employees pay 5% of gross pay and employers pay 10%, 15% in total. The employee's NSSF is not deducted before PAYE in Uganda, so PAYE is worked out on gross pay (less any additional approved pension).
Example: gross pay of 1,000,000
| Employee NSSF (5%) | 50,000 |
| Employer NSSF (10%) | 100,000 |
| PAYE: 20% x 75,000 + 25% x 75,000 + 30% x 515,000 | 188,250 |
Local Service Tax
Local Service Tax is an annual levy set by local governments and banded by income. Employers deduct it from employees' pay in instalments and remit it to the relevant local government. Amounts and instalment dates vary by district, so check with yours.
Deadlines
PAYE and NSSF are both due by the 15th of the following month. PAYE is returned through URA e-services. See all countries in payroll deadlines.
Try it
The Uganda payslip calculator shows net pay and employer cost for any salary under the current bands.