Uganda LST Calculator
Find out how much Local Service Tax applies to your income and when it's deducted.
What Is Local Service Tax?
Local Service Tax (LST) is a mandatory tax collected by local governments in Uganda from all income-earning individuals within their jurisdiction. The tax funds local services including road maintenance, waste collection, and community development projects. LST was introduced under the Local Governments Act and applies to both employed and self-employed individuals.
LST Rates by Income Band
LST is charged annually based on your monthly income. The following table shows the annual LST payable for each income bracket:
| Monthly Income (UGX) | Annual LST (UGX) |
|---|---|
| 0 – 100,000 | 0 |
| 100,001 – 200,000 | 5,000 |
| 200,001 – 300,000 | 10,000 |
| 300,001 – 400,000 | 20,000 |
| 400,001 – 500,000 | 30,000 |
| 500,001 – 600,000 | 40,000 |
| 600,001 – 700,000 | 60,000 |
| 700,001 – 800,000 | 70,000 |
| 800,001 – 900,000 | 80,000 |
| 900,001 – 1,000,000 | 90,000 |
| Above 1,000,000 | 100,000 |
The maximum annual LST is UGX 100,000, applying to anyone earning above UGX 1,000,000 per month. Those earning below UGX 100,000 per month are exempt from LST entirely.
When Is LST Deducted?
Unlike PAYE and NSSF which are deducted every month, LST is only deducted during four specific months: July, August, September, and October. The annual LST amount is divided equally across these four months. For example, if your annual LST is UGX 100,000, you would have UGX 25,000 deducted in each of July, August, September, and October.
Alternatively, you can choose to pay your entire annual LST as a lump sum in any single month within the July–October window. This can be beneficial for cash flow planning, as you'll only see the reduced take-home pay in one month rather than four.
LST and PAYE — Avoiding Double Taxation
During LST months, both PAYE and LST are deducted from your salary. To prevent double taxation, the order in which PAYE and LST are calculated matters. The tax calculated first should be deducted from the income used to calculate the second tax. Most payroll systems handle this automatically, but it's important to verify your payslip during July–October to ensure both taxes are being calculated correctly.
Impact on Your Take-Home Pay
For most employees, LST has a relatively small impact on take-home pay compared to PAYE and NSSF. The maximum monthly deduction is UGX 25,000 (for those earning over UGX 1,000,000), and it only applies during four months of the year. However, it's worth planning for these months, as your take-home pay will be noticeably lower during July through October.