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UG Tax 2022

Uganda Tax Tables 2022 - Tax Rates and Thresholds in Uganda

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This page contains the tax table information used for the calculation of tax and payroll deductions in Uganda in 2022. These tax tables are used for the tax and payroll calculators published on iCalculator™ UG, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Uganda or would like to add to or suggest amendments to the information herein then please contact us.

Uganda Personal Income Tax Tables in 2022

The Income tax rates and personal allowances in Uganda are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Uganda Tax Calculator 2022.

Uganda Residents Income Tax Tables in 2022
Personal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
0%Income from UGX 0.000.00to UGX 2,820,000.00
10%Income from UGX 2,820,000.01 to UGX 4,020,000.00
20%Income from UGX 4,020,000.01 to UGX 4,920,000.00
30%Income from UGX 4,920,000.01 to UGX 120,000,000.00
40%Income from UGX 120,000,000.01 and above
Uganda Non-residents Income Tax Tables in 2022
Personal Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
10%Income from UGX 0.000.00to UGX 4,020,000.00
20%Income from UGX 4,020,000.01 to UGX 4,920,000.00
30%Income from UGX 4,920,000.01 to UGX 120,000,000.00
40%Income from UGX 120,000,000.01 and above

Uganda Local Service Tax Deduction Rates in 2022

Local Service Tax (LST) in Uganda is a crucial component of the country's tax system, aimed at bolstering local government finances to enhance service delivery and development at the grassroots level. This following provides a comprehensive overview of LST, exploring its definition, purposes, and importance within the Ugandan context.

Uganda Local Service Tax in 2022: Thresholds and Amounts for Employees
Amount of annual income earnedRate of local service tax per year
1Exceeding UGX 1,200,000.00 but not exceeding UGX 2,400,000.00UGX 5,000.00
2Exceeding UGX 2,400,000.00 but not exceeding UGX 3,600,000.00UGX 10,000.00
3Exceeding UGX 3,600,000.00 but not exceeding UGX 4,800,000.00UGX 20,000.00
4Exceeding UGX 4,800,000.00 but not exceeding UGX 6,000,000.00UGX 30,000.00
5Exceeding UGX 6,000,000.00 but not exceeding UGX 7,200,000.00UGX 40,000.00
6Exceeding UGX 7,200,000.00 but not exceeding UGX 8,400,000.00UGX 60,000.00
7Exceeding UGX 8,400,000.00 but not exceeding UGX 9,600,000.00UGX 70,000.00
8Exceeding UGX 9,600,000.00 but not exceeding UGX 10,800,000.00UGX 80,000.00
9Exceeding UGX 10,800,000.00 but not exceeding UGX 12,000,000.00UGX 90,000.00
10Exceeding UGX 12,000,000.00 UGX 100,000.00

Understanding Local Service Tax

LST is a tax levied on the income of individuals employed or engaged in business within the jurisdiction of local governments in Uganda. It is designed to be a direct contribution from residents and businesses towards the cost of local services provided by municipal authorities. LST is collected annually and is due by all income-earning residents within a local council's jurisdiction, with some exemptions based on income levels or specific criteria set by local authorities.

Compliance and Administration

The collection and administration of LST are primarily the responsibilities of local government authorities. To ensure compliance, local councils engage in awareness campaigns, educating residents and businesses about their tax obligations. The process of assessing, collecting, and managing LST is streamlined to make it as efficient as possible for taxpayers to meet their responsibilities.

Challenges and Prospects

While LST plays a critical role in local development, it faces several challenges, including issues of compliance, administrative inefficiencies, and the equitable distribution of the tax burden. Efforts are continuously made to address these challenges, including the use of technology to improve collection methods and the implementation of fair assessment policies to ensure that the tax burden is distributed appropriately.

In conclusion, Local Service Tax in Uganda is a vital tool for local development and service delivery. It not only provides necessary funds for infrastructure and services but also strengthens the bond between local governments and their constituents through shared responsibility for community well-being. As Uganda continues to grow and develop, the role of LST in fostering sustainable local development becomes increasingly important.

In Uganda, contributions made to the National Social Security Fund (NSSF) by both employees and employers are considered deductible expenses for the purpose of calculating taxable income. This means that the amounts contributed to the NSSF can be deducted from the gross income of both individuals and companies before arriving at the taxable income. This provision encourages participation in the NSSF by reducing the tax burden on contributors, ultimately promoting savings and financial security for employees in their retirement.

Uganda Social Security and Payroll Deduction Rates in 2022

In Uganda, both employees and employers are subject to various social security and payroll deductions. These deductions are crucial for ensuring that workers are supported during times of need such as retirement, health challenges, and occupational hazards. The Uganda National Social Security Fund (NSSF) is the principal entity managing social security contributions in the country. This guide provides an overview of the types of social security and payroll deductions in Uganda and what each element funds.

Uganda Social Security in 2022: Rates for Employers and Employees
CategoryEmployeeEmployerTotal
Social Security Deductions5%10%15%
Uganda Social Security and Payroll Deduction in 2022: Earnings Thresholds for Employers and Employees
CategoryEmployeeEmployer
Min.Max.Min.Max.
Social Security Deductionsn/an/an/an/a

Uganda VAT Rates in 2022

VAT rates for Uganda are reviewed annually, you can use the VAT Calculator to calculate VAT due in Uganda or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Uganda VAT Rates
VAT RateVAT Description
18%Standard Rate

Historic Tax Tables supported for Uganda

The following tax tables are supported by iCalculator™ UG as part of the suite of free tax tools we provide for Uganda.