Republic of Uganda — PAYE, VAT, NSSF, Excise Duty 2026
💰 PAYE Calculator (Pay As You Earn)
Calculate annual personal income tax under Uganda's progressive PAYE system (Income Tax Act, Cap 340 as amended). Top marginal rate: 35%. Tax-free threshold: USh 2,820,000/year. All amounts in Uganda Shillings (UGX).
USh
USh
📌 Deductions & Reliefs:
NSSF employee contributions (5%) are tax-deductible. Mortgage interest on owner-occupied housing is deductible. Donations to approved institutions are deductible. The tax-free threshold of USh 2,820,000/year (USh 235,000/month) means no PAYE on income below this level. Tax year: 1 Jul – 30 Jun. Returns due by 30 September of the following year.
📊 URA PAYE Tax Brackets 2026
Progressive personal income tax rates for individuals resident in Uganda, per the Income Tax Act (Cap 340) as amended by the Uganda Revenue Authority (URA).
Lower Limit (UGX)
Upper Limit (UGX)
Fixed (UGX)
Rate %
0
2,820,000
0
0%
2,820,001
4,020,000
0
10%
4,020,001
5,000,000
120,000
25%
5,000,001
6,000,000
365,000
30%
6,000,001
Above
665,000
35%
📌 Formula:
Tax = Fixed Amount + Rate × (Chargeable Income − Lower Limit). The first USh 2,820,000 of annual income is exempt from tax.
🏢 NSSF Contribution Rates
Item
Employee
Employer
NSSF Tier 1 (Mandatory)
5%
10%
NSSF Tier 2 (Voluntary)
5%
5%
Total (with Tier 2)
10%
15%
📌 Note:
NSSF (National Social Security Fund) contributions are mandatory under the NSSF Act (Cap 222). Employee 5% is tax-deductible for PAYE. Employer 10% is also tax-deductible. The voluntary Tier 2 adds 5% each side. Both employee and employer contributions are tax-deductible.
🧾 VAT Calculator (Value Added Tax)
Standard rate: 18% (VAT Act, Cap 349). Zero-rated: exports, certain basic foodstuffs (maize flour, milk, sugar). Exempt: financial services, medical services, education, residential rent, public transport.
USh
📌 Zero-Rated Items:
Exports of goods and services, maize flour, wheat flour, milk, sugar (for human consumption), agricultural inputs, and certain basic foodstuffs. Exempt supplies include financial services, medical services, educational services, residential rent, and public transportation.
👥 NSSF Calculator (Social Security)
Calculate mandatory social security contributions under the NSSF system. Covers retirement pension, invalidity benefit, survivor benefit, and funeral grant.
USh
📌 NSSF Benefits:
The NSSF system provides: retirement benefit (after minimum 10 years of contributions, at age 55), invalidity benefit (if contributing at time of disability), survivor's benefit (widow/widower and dependent children), funeral grant, and emigration grant. Both employee (5%) and employer (10%) contributions are tax-deductible for PAYE purposes.
🍺 Excise Duty Calculator
Uganda excise duties under the Excise Duty Act (Cap 344). Levied on alcoholic beverages, tobacco, petroleum products, motor vehicles, and sugar-sweetened beverages.
USh
USh
%
📌 Excise Duty in Uganda:
Excise duty is governed by the Excise Duty Act (Cap 344) and administered by the URA. Motor vehicle excise rates vary by engine capacity (10–50% of CIF value). Tobacco products are subject to specific excise per stick. Petroleum products are subject to specific levies including the Road Fund contribution. Sugar-sweetened beverages attract 10% ad valorem excise. VAT at 18% is applied on top of the excise-inclusive price.