# What is PAYE (Uganda)?

Country: Uganda

Pay As You Earn: the income tax an employer withholds from employees' pay each month and pays to URA.

## 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.

Source: https://ura.go.ug/en/domestic-taxes/paye-rates/

## Related terms

- [NSSF (Uganda)](https://accounts-os.com/ug/glossary/nssf-uganda)
- [Withholding Tax (Uganda)](https://accounts-os.com/ug/glossary/withholding-tax-uganda)
- [TIN (Uganda)](https://accounts-os.com/ug/glossary/tin-uganda)