What are the PAYE rates in Uganda from July 2026?
From 1 July 2026: nil up to UGX 335,000 a month, then 20%, 25% and 30%, with an extra 10% above UGX 10 million.
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Detailed Explanation
## The bands (residents, monthly)
- Up to 335,000: nil
- 335,001 to 410,000: 20% above 335,000
- 410,001 to 485,000: 15,000 plus 25% above 410,000
- Above 485,000: 33,750 plus 30% above 485,000
- Above 10,000,000: an extra 10%
## The change
The Income Tax (Amendment) Act, 2026 was assented on 20 August 2026 with effect from 1 July 2026. The old threshold was 235,000. Employers amend July and August 2026 returns filed at the old rates.
## Example
UGX 1,000,000 a month: 33,750 + 30% x 515,000 = UGX 188,250.
Source: https://ura.go.ug/en/domestic-taxes/paye-rates/
Real-World Examples
Employee on UGX 400,000
PAYE is 20% of 65,000, UGX 13,000.
Common Mistakes to Avoid
- Running payroll on the old bands
- Not amending July and August 2026
Frequently Asked Questions
When is PAYE due?
By the 15th of the following month.
Do non-residents get the nil band?
No.
Practical Tips
- Check your payroll software updated its bands
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