Uganda | Proposed payroll-related tax changes

Uganda | Proposed payroll-related tax changes

Uganda’s Income Tax (Amendment) Bill, 2026 and related 2026 tax amendment bills were tabled before Parliament on 1 April 2026, covering proposed payroll-related tax measures that would apply from 1 July 2026 if enacted.
What is changing
Resident individuals, foreign-source income
  • Income derived by a resident individual from foreign sources would be taxed at the same rates that apply to income sourced in Uganda.
  • This clarification affects the taxation basis for resident individuals with foreign-source income.
Individual income tax bands
  • The Bill proposes revised individual income tax bands and rates as follows:
Chargeable income
Rate of Tax
Not exceeding Ushs. 4,020,000
Nil
Exceeding Ushs. 4,020,000 but not exceeding Ushs. 4,920,000
20% of the amount by which chargeable income exceeds Ushs. 4,020,000
Exceeding Ushs. 4,920,000 but not exceeding Ushs. 5,820,000
Ushs. 180,000 plus 25% of the amount by which chargeable income exceeds Ushs. 4,920,000
Exceeding Ushs. 5,820,000 but not exceeding Ushs. 120,000,000
Ushs. 405,000 plus 30% of the amount by which chargeable income exceeds Ushs. 5,820,000
Exceeding Ushs. 120,000,000
  • Ushs. 405,000 plus 30% of the amount by which chargeable income exceeds Ushs. 5,820,000 and
  • Where the income of an individual exceeds Ushs. 120,000,000 an additional 10% charged on the amount by which chargeable income exceeds Ushs. 120,000,000.
Official source

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