Ghana PAYE 2026: the new income tax bands from 1 September, explained
Under the Income Tax (Amendment) Act, 2026 (Act 1178), the first GHS 588 of monthly chargeable income is tax-free from 1 September 2026. Here are the full new bands, what counts as chargeable income, and a worked example.
By Ernest · 23 October 2026
What changed
The Ghana Revenue Authority announced that, following the passage of the Income Tax (Amendment) Act, 2026 (Act 1178), income tax rates have been amended. The GRA set 1 September 2026 as the implementation date (the Act itself names no commencement date beyond its 26 August assent). The bands below are the rates for resident individuals, as set out in the Act's First Schedule. The headline change for salaried workers: the first slice of monthly chargeable income, up to GHS 588, is now taxed at 0%.
| Monthly chargeable income | Amount | Rate |
|---|---|---|
| First | GHS 588 | 0% |
| Next | GHS 80 | 5% |
| Next | GHS 100 | 10% |
| Next | GHS 2,900 | 17.5% |
| Next | GHS 16,000 | 25% |
| Next | GHS 30,332 | 30% |
| Exceeding | GHS 50,000 | 35% |
The equivalent annual bands run from a tax-free first GHS 7,056 up to 35% on annual chargeable income above GHS 600,000.
Gross salary is not what gets taxed
PAYE (Pay As You Earn) is deducted at source by your employer using the monthly graduated rates, and your employer files the return by the 15th of the following month. But the bands apply to chargeable income, not your gross salary. According to the GRA, these items come off your income before PAYE is calculated:
- SSNIT - 5.5% of basic salary
- Mortgage interest on one residential premise (lifetime)
- Provident fund contributions, capped at 16.5% of basic salary in total (paid by the employer, the employee, or both) - this applies only if you actually contribute to a provident fund; it is a cap on what can be deducted, not an automatic extra deduction
- Donations to a worthwhile cause
In the other direction, cash allowances - transport, rent, risk, night duty, responsibility, child education and similar - are added to salary for PAYE purposes, and benefits in kind (a car, fuel, accommodation) are valued and added too.
Worked example: GHS 3,000 a month
Take a resident employee whose basic salary is the full GHS 3,000 a month - no cash allowances, no benefits in kind, and no reliefs other than the standard employee SSNIT contribution:
- Gross salary: GHS 3,000.00
- Less SSNIT (5.5%): −GHS 165.00
- Chargeable income: GHS 2,835.00
Applying the new monthly bands to GHS 2,835:
- First GHS 588 at 0% = GHS 0
- Next GHS 80 at 5% = GHS 4.00
- Next GHS 100 at 10% = GHS 10.00
- Remaining GHS 2,067 at 17.5% = GHS 361.73
Total PAYE: about GHS 375.73 a month. Take-home after SSNIT and PAYE: about GHS 2,459.27.
This example is illustrative only - it assumes basic salary is the entire GHS 3,000. Real payslips differ: mortgage interest, provident fund contributions or other reliefs would lower the chargeable income and the tax, while transport, rent or other cash allowances would raise them.
What to check on your payslip
The new rates have applied since 1 September 2026, so payslips from September onward should already reflect them. Note that the GRA's own older personal income tax page still shows the previous GHS 490 threshold - the Act 1178 notice supersedes it. For exact figures on your situation, use the GRA's official channels (toll-free 0800-900-110) or a tax professional. Different rules apply to self-employed and business income, which are not covered here.
Sources: Ghana Revenue Authority, "Amendments - Income Tax Act, 2026 (Act 1178)" (band tables and the GRA-announced 1 September 2026 implementation date), the GRA notice (PDF), and the published text of Act 1178 (mirror of the gazette print; assented to and Gazette-notified 26 August 2026; resident-individual bands in the First Schedule), plus GRA PAYE guidance (deductions, allowances, filing), all retrieved 23 October 2026. This article is general information, not tax advice.