What is PAYE (Uganda)?
Pay As You Earn: the income tax an employer withholds from employees' pay each month and pays to URA.
Finn does your books in Uganda
AccountsOS keeps the books for Uganda businesses, tracks tax deadlines and handles invoicing, in plain English. Ask Finn about yours, no signup needed.
Current Rate (Monthly. The return and the payment are due by the 15th of the following month.)
From 1 July 2026 for residents: nil up to UGX 335,000 a month, then 20%, 25% and 30%, plus 10% on monthly income above UGX 10 million.
Example
An employee on UGX 1,000,000 a month pays UGX 33,750 plus 30% of UGX 515,000, which is UGX 188,250.
How PAYE (Uganda) works in Uganda
The Income Tax (Amendment) Act, 2026 was assented on 20 August 2026 with effect from 1 July 2026. Before that the tax-free band was UGX 235,000 with 10%, 20% and 30% bands. Employers who filed July or August 2026 at the old rates amend those returns.
Non-residents have no tax-free band. Some older URA pages still show the old bands, so use the URA PAYE rates page.
Related terms
The National Social Security Fund, Uganda's mandatory savings scheme for employees. Employers pay contributions every month.
Income tax deducted at source by the payer and paid to URA on the payee's behalf. The payee claims it as a credit against its own tax.
The Tax Identification Number: a 10-digit number URA issues free of charge to every taxpayer, used for all taxes.
Confused by Uganda accounting jargon?
AccountsOS explains Uganda terms in plain English and applies the right rules to your books automatically.
Try Free