Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
USh 1,005
Social Security
- USh 50.25
Total tax
- USh 50.25
Net pay
* USh 955
Marginal tax rate
5.0%
Average tax rate
5.0%
95.0%
Net pay
5.0%
Total tax
Total tax
Net pay
The Taxberg
USh 955
Net pay
USh 101
Tax the employer pays
USh 50.25
Tax you pay
Total tax paid
USh 151
Did you know your employer also pays tax on your salary? It costs the employer USh 101 to pay you USh 1,005. In other words, every time you spend USh 10 of your hard-earned money, USh 1.50 goes to the government.
Real tax rate
13.6%
So, with you and the employer both paying tax, what used to be a 5% tax rate now rises to 13.6%, meaning your real tax rate is actually 8.6% higher than what it seemed at first.
Summary
If you make USh 1,005 a year living in Uganda, you will be taxed USh 50.25. That means that your net pay will be USh 955 per year, or USh 79.56 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.
Bonus Example
A USh 1,000 bonus will generate an extra USh 950 of net incomes. A USh 5,000 bonus will generate an extra USh 4,750 of net incomes.
NOTE* Withholding is calculated based on the tables of Uganda, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.