Uganda Income Tax Rates 2026: Personal, Corporate and Capital Gains Tax
A practical guide to Uganda's resident and non-resident individual income tax, PAYE, corporation tax, capital gains and withholding taxes, with historical 2017-2018 tax rates preserved for comparison.
Uganda resident individual income tax rates from 1 July 2026
The Income Tax (Amendment) Act, 2026 revised the monthly resident individual tax schedule. Chargeable income means taxable income after applicable statutory adjustments and deductions. The following are total monthly tax formulas, not flat rates on the whole salary.
| Monthly chargeable income (UGX) | Monthly income tax calculation |
|---|---|
| 0 to 335,000 | Nil |
| 335,001 to 410,000 | 20% of amount above 335,000 |
| 410,001 to 485,000 | 15,000 + 25% of amount above 410,000 |
| 485,001 to 10,000,000 | 33,750 + 30% of amount above 485,000 |
| Above 10,000,000 | 33,750 + 30% of amount above 485,000 + 10% of amount above 10,000,000 |
Example: For monthly chargeable income of UGX 500,000, PAYE is UGX 33,750 + 30% of UGX 15,000 = UGX 38,250. This is income tax only; other payroll obligations are separate.
Source: URA notice on 2026 PAYE amendments.
Uganda income tax rates for non-resident individuals
Non-residents are generally taxable on Uganda-source income. The Uganda Revenue Authority publishes the following monthly non-resident individual schedule. Residence status and applicable tax treaties can affect the treatment of particular income.
| Monthly chargeable income (UGX) | Tax calculation |
|---|---|
| Up to 335,000 | 10% of chargeable income |
| 335,001 to 410,000 | 33,500 + 20% of amount above 335,000 |
| Above 410,000 | 48,500 + 30% of amount above 410,000, plus 10% of amount above 10,000,000 where applicable |
Source: URA income tax and withholding guidance. The July 2026 announcement expressly revises resident rates; check URA for subsequent non-resident amendments before filing.
Uganda corporate income tax rate
The standard corporation tax rate is 30% of chargeable profits for resident and non-resident companies within the scope of the Income Tax Act. A resident company is generally taxed on worldwide income, whereas a non-resident company is generally taxed on income sourced in Uganda. Special regimes, exemptions and treaty provisions may alter the result.
Example: UGX 100 million of chargeable company profit generally produces UGX 30 million of corporation tax before credits and special adjustments. See URA corporation tax guidance.
Capital gains tax in Uganda
Capital gains are generally dealt with under the income tax system rather than through a universal separate capital gains tax rate. Gains on the disposal of taxable business assets, shares or commercial property may be included in chargeable income. A corporate taxpayer's taxable gains generally fall within the standard 30% company tax rate; an individual's treatment depends on the asset, circumstances, residence and relevant exemptions.
Where qualifying business assets are held for 12 months or longer, inflation adjustment of the cost base may apply under the statutory rules. URA explains the formula and examples in its official capital gains guidance. Do not assume every private asset sale is taxable or that every gain qualifies for relief.
Withholding tax on Uganda-source payments
Withholding tax is tax deducted by a payer before payment to a recipient and remitted to URA. A 15% domestic withholding rate can apply to various payments to non-residents, including certain dividends, interest, royalties, rent, natural resource payments and management charges, but exceptions, different statutory rates, exemptions and double-tax treaties must be considered. It is not a blanket rate for all payments.
Employment withholding is commonly known as PAYE. Refer to the URA withholding tax guide and current URA notices for transaction-specific rules.
Historical Uganda income tax rates for 2017-2018
The original article covered 2017-2018. These figures are retained for historical reference and do not reflect the new resident rates effective July 2026.
Resident individuals: historical monthly tax bands
| Monthly income (UGX) | Marginal rate |
|---|---|
| Up to 235,000 | 0% |
| 235,001 to 335,000 | 10% |
| 335,001 to 410,000 | 20% |
| Above 410,000 | 30% |
| Portion exceeding 10,000,000 | Additional 10% |
Non-resident individuals: historical monthly tax bands
| Monthly income (UGX) | Marginal rate |
|---|---|
| Up to 335,000 | 10% |
| 335,001 to 410,000 | 20% |
| Above 410,000 | 30% |
| Portion exceeding 10,000,000 | Additional 10% |
For 2017-2018, the original article also recorded a 30% standard corporation tax rate, the general taxation of capital gains as income, and a 15% withholding tax reference for specified non-resident payments. These statements must be read subject to the applicable law and exceptions for that historical period.
Legal framework and official sources
The principal legislation is Uganda's Income Tax Act, Cap. 338, as amended, including the Income Tax (Amendment) Act, 2026. The Act governs the imposition of income tax, residence, chargeable income, rates, deductions and withholding. The relevant schedules set out individual tax rates; URA's 2026 notice explains their payroll implementation. Verify the consolidated legislation and applicable commencement dates when applying a particular provision.
Official resources: Uganda Revenue Authority; 2026 resident PAYE update; corporation tax; capital gains; withholding tax.
This guide provides general information and is not a substitute for advice based on the applicable statute, tax year, residence status and transaction.