How To Calculate Income Tax In Uganda

What is Income Tax?

An income tax is a tax imposed on individuals or entities in respect of the income or profits earned by them. Income tax generally is computed as the product of a tax rate times the taxable income.

Taxation rates may vary by type or characteristics of the taxpayer and the type of income. 

How To Calculate Income Tax In Uganda

Below is how best you can calculate your income

If you make USh 1,000,000 a year living in Uganda, you will be taxed USh 50,000. That means that your net pay will be USh 950,000 per year, or USh 79,167 per month. Your average tax rate is 5.0% and your marginal tax rate is 5.0%.

This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of USh 100 in your salary will be taxed USh 5, hence, your net pay will only increase by USh 95.

What is the income tax rate in Uganda?

Personal income taxProgressive rates from 0 to 40%
From UGX 0 to 2,820,0000%
From UGX 2,820,000 to 4,020,00010%
From UGX 4,020,000 to 4,920,000UGX 120,000 + 20%
From UGX 4,920,000 to 120,000,000UGX 300,000 + 30%
Above UGX 120,000,000UGX 34,824,000 + 40%
Non-resident individuals
From UGX 0 to 4,020,00010%
From UGX 4,020,001 to 4,920,000UGX 402,000 + 20%
From UGX 4,920,001 to 120,000,000UGX 582,000 + 30%
Above UGX 120,000,000UGX 35,106,000 + 40%
Rental income30% (a deduction of interest on the mortgage obtained to construct or acquire the premises that generate the income is allowed, plus a subtraction of expenses and losses, capped at 75% of gross rental income)