Uganda Tax Rates 2026/27: Income Tax, Corporate Tax, VAT and Withholding Tax
Updated: 3 September 2026This guide summarises the principal Uganda tax rates and compliance rules applicable in FY 2026/27, including resident and non-resident individual income tax, PAYE, corporate income tax, withholding tax, VAT, capital gains and filing deadlines.
Uganda Resident Individual Income Tax Rates - 2026/27
Resident individuals continue to benefit from the UGX 2,820,000 annual tax-free threshold. Income above that amount is taxed progressively. Where annual chargeable income exceeds UGX 120 million, an additional 10% is charged on the amount above UGX 120 million.
| Annual chargeable income (UGX) | Resident individual income tax |
|---|---|
| Up to 2,820,000 | Nil |
| 2,820,001 - 4,020,000 | 10% of the amount exceeding UGX 2,820,000 |
| 4,020,001 - 4,920,000 | UGX 120,000 + 20% of the amount exceeding UGX 4,020,000 |
| Above 4,920,000 | UGX 300,000 + 30% of the amount exceeding UGX 4,920,000 |
| Above 120,000,000 | Normal tax above, plus an additional 10% of the amount exceeding UGX 120,000,000 |
Monthly PAYE rates for resident employees
| Monthly chargeable income (UGX) | PAYE rate |
|---|---|
| 0 - 235,000 | Nil |
| 235,001 - 335,000 | 10% of the amount exceeding UGX 235,000 |
| 335,001 - 410,000 | UGX 10,000 + 20% of the amount exceeding UGX 335,000 |
| 410,001 - 10,000,000 | UGX 25,000 + 30% of the amount exceeding UGX 410,000 |
| Above 10,000,000 | Normal PAYE above, plus 10% of the amount exceeding UGX 10,000,000 |
An employee working for more than one employer may be subject to 30% withholding on employment income from the additional employment, subject to the statutory reconciliation rules.
Uganda Non-Resident Individual Income Tax Rates
Non-resident individuals are generally taxable on Uganda-source income and do not receive the resident tax-free threshold.
| Annual chargeable income (UGX) | Non-resident individual income tax |
|---|---|
| Up to 4,020,000 | 10% of chargeable income |
| 4,020,001 - 4,920,000 | UGX 402,000 + 20% of the amount exceeding UGX 4,020,000 |
| Above 4,920,000 | UGX 582,000 + 30% of the amount exceeding UGX 4,920,000 |
| Above 120,000,000 | Normal tax above, plus an additional 10% of the amount exceeding UGX 120,000,000 |
Corporate Income Tax Rate in Uganda - 2026/27
The standard corporate income tax rate remains 30% of chargeable income. URA expressly confirmed in August 2026 that the corporate tax rate continues to be 30% and that references to an "effective tax rate" do not replace the statutory corporate rate.
Resident companies are generally taxed on worldwide income, subject to the Income Tax Act and applicable reliefs. Non-resident companies are generally taxed on Uganda-source income and income attributable to a Uganda permanent establishment.
Withholding Tax Rates in Uganda
Uganda uses withholding at source for several categories of payments. The applicable rate depends on the payer, payee, nature of payment, source rules, any exemption and any applicable double-tax agreement.
| Payment / transaction | Common rate | General treatment |
|---|---|---|
| Qualifying supplies of goods or services to Government, Government institutions, local authorities, Government-controlled companies and designated withholding agents where the statutory payment threshold is exceeded | 6% | Generally creditable against the recipient's income-tax liability unless exempt. |
| Resident consultancy/service income where withholding applies | 6% | Generally an advance/creditable income-tax payment. |
| Dividends | Generally 15% | Special rates/exemptions may apply in specified cases. |
| Interest | Generally 15% | Different treatment may apply to government securities and specified interest. |
| Royalties paid to non-residents | Generally 15% | Subject to domestic law and applicable treaty relief. |
| Non-resident public entertainer | 15% | Applied to the gross payment under the relevant rule. |
| Repatriated branch profits | Generally 15% | Subject to the Income Tax Act and treaty provisions. |
URA maintains a current withholding-tax exemption list. Exempt status is time-limited and should be verified for the relevant period before a payer decides not to withhold.
Capital Gains Tax in Uganda
Uganda does not operate a separate general capital-gains tax regime. Gains on the disposal of taxable business assets, shares and commercial buildings are dealt with under the Income Tax Act.
For corporate entities, taxable gains are added to gross income and taxed at the standard 30% corporate income-tax rate. For individuals, gains on business assets are generally included in business income and taxed using the applicable individual rates. Cost-base indexation may apply to certain assets held for at least 12 months in accordance with the statutory formula.
Value Added Tax (VAT) in Uganda - 2026/27
The standard VAT rate remains 18%. Zero-rated and exempt supplies are governed by the VAT Act and its schedules.
For FY 2026/27, the VAT law was amended with effect from 1 July 2026. Among the changes, the VAT registration threshold was increased from UGX 150 million to UGX 250 million of taxable supplies, and the 2026 amendment also addressed VAT withholding where a designated person receives a compliant electronic invoice or electronic receipt. Businesses should confirm registration and withholding obligations against the current VAT Act and URA guidance.
Tax Residence in Uganda
An individual may be resident in Uganda based on factors including having a permanent home in Uganda, presence for at least 183 days in a relevant 12-month period, or the statutory average-presence test. A company may be resident where it is incorporated in Uganda or satisfies the management/control or operational tests under the Income Tax Act.
Uganda Tax Return Filing and Payment Deadlines
Final annual income-tax returns for individuals, companies, partnerships and trusts are generally due within six months after the end of the taxpayer's year of income. Provisional-return rules differ for individuals and non-individuals.
Withholding-tax returns, including PAYE returns, are generally due by the 15th day of the following month. VAT returns and payment obligations also operate on a monthly basis, subject to the VAT Act and URA's filing system.
A taxpayer may use an accounting period different from the standard year where permitted by the Commissioner. Accordingly, filing dates should be calculated by reference to the taxpayer's approved year of income rather than assuming every taxpayer uses the same year-end.
Official Uganda Tax Resources
- Uganda Revenue Authority - PAYE Rates
- Uganda Revenue Authority - Corporation Tax
- Uganda Revenue Authority - Individual Income Tax Rates and Filing Obligations
- Uganda Revenue Authority - Withholding Tax
- Uganda Revenue Authority - Domestic Tax FAQs including Capital Gains
- Uganda Revenue Authority - Tax Amendments for FY 2026/27
- Uganda Revenue Authority - FY 2026/27 Tax Amendments Download
- Uganda Revenue Authority - Laws, Acts and Regulations
- Uganda Revenue Authority - Official Website
This page is a general tax-rate summary. The Income Tax Act, VAT Act, Tax Procedures Code, annual amendment Acts, statutory instruments, URA guidance and any applicable double-tax agreement should be reviewed for a specific taxpayer or transaction.
Historical Uganda Tax Rates - Archive
Archive only: The older figures below were part of the historical page and are retained for reference. They should not be treated as a substitute for the current FY 2026/27 rules above.
Historical resident individual rates shown for 2015
| Annual chargeable income (UGX) | Historical rate |
|---|---|
| Up to 2,820,000 | Nil |
| 2,820,001 - 4,020,000 | 10% of excess over 2,820,000 |
| 4,020,001 - 4,920,000 | UGX 120,000 + 20% of excess over 4,020,000 |
| Over 4,920,000 | UGX 300,000 + 30% of excess over 4,920,000, plus the additional 10% above UGX 120 million |
Historical corporate information
The earlier page recorded a 30% corporation-tax rate and stated that taxable business capital gains were included with business income. Those core rates remain relevant, but the current treatment above incorporates the later legislation and URA guidance.