How PAYE on salary is calculated in Uganda
Uganda uses a progressive PAYE system: you don't pay one flat rate on your whole salary. Each bracket of your monthly income is taxed at its own rate, so you only pay the higher rate on the portion above each threshold. These are the bands currently in force, effective from 1st July 2026 and administered by the Uganda Revenue Authority (URA).
| Monthly income (UGX) | Rate on this slice | Tax at band max |
|---|---|---|
| 0 – 335,000 | 0% | Nil |
| 335,000 – 410,000 | 20% | UGX 15,000 |
| 410,000 – 485,000 | 25% | UGX 33,750 |
| 485,000 – 10,000,000 | 30% | UGX 2,888,250 |
| 10,000,000+ | 40% | Progressive |
Source: Uganda Revenue Authority · Income Tax Act (Cap 340). Amounts in UGX per month.
NSSF contributions explained
On top of PAYE, employees contribute 5% of gross salary to the National Social Security Fund, while the employer adds 10% — a total of 15% of your gross going toward your retirement savings.
Please Note: your NSSF is not deducted before PAYE is calculated. Unlike Kenya and Tanzania, Uganda charges BOTH NSSF and PAYE on your full gross salary, and removes each separately. This calculator handles that correctly.
Gross salary vs net salary: what's the difference?
- Gross salary is the total figure in your offer letter or contract — before anything is taken out.
- Net salary (take-home pay) is calculated by deducting PAYE, NSSF and other taxes, what remains after everything is deducted — that is your take home, the money you can actually spend.
When Jobs advertise salary, it's often always the gross figure. The gap between gross and net is exactly what this calculator shows you.
What this salary calculator covers
- Figures are monthly. Annual gross and annual take-home are shown alongside each result.
- Your gross should include basic pay plus regular cash allowances and bonuses, since PAYE applies to total employment income.
- It applies to resident employees taxed under the URA monthly PAYE tables.
- Rates come straight from the FY 2026/27 URA bands and the NSSF Act, and are dated so you can see when they were last reviewed.
Worked examples
Here's what take-home pay looks like across three common salary levels under the FY 2026/27 bands.
| Gross monthly salary | PAYE | NSSF (5%) | Net take-home |
|---|---|---|---|
| UGX 300,000 | 0 | 15,000 | 285,000 |
| UGX 500,000 | 38,250 | 25,000 | 436,750 |
| UGX 1,500,000 | 338,250 | 75,000 | 1,086,750 |
Notice the effective tax amount climbs with income — that's the progressive system at work.
Local Service Tax (LST)
Beyond PAYE and NSSF, most employed people also pay Local Service Tax — a small annual levy collected by local governments, usually spread across July to November.
| Annual income up to (UGX) | Annual LST |
|---|---|
| 3,600,000 | Exempt |
| 9,000,000 | UGX 15,000 |
| 18,000,000 | UGX 35,000 |
| 30,000,000 | UGX 75,000 |
| Above the previous tier | UGX 100,000 |
How to increase your take-home pay
PAYE bands are fixed, so the most reliable way to grow your net pay is to grow your gross pay. If your salary has plateaued, it may be time to see what the market is paying for your role.
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Disclaimer. This calculator is provided for general guidance only and does not constitute tax, legal, or financial advice. Tax rates, bands, and NSSF rules are subject to change by Parliament and URA. Always verify current rates against official URA guidance before processing payroll.
Sources: Uganda Revenue Authority · Income Tax Act (Cap 340) · NSSF Act (Cap 222). Bands shown are for FY 2026/27, effective 1st July 2026.