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Part of the guideRunning payroll in Nigeria, Ghana and Kenya: an employer's guide
The short answer
From 1 September 2026, Ghana's resident PAYE bands are 0% on the first GH¢588 of monthly chargeable income, then 5% on the next GH¢80, 10% on the next GH¢100, 17.5% on the next GH¢2,900, 25% on the next GH¢16,000, 30% on the next GH¢30,332 and 35% above GH¢50,000. Chargeable income is gross pay less the employee's 5.5% SSNIT contribution and any other allowable deductions. Employers file and pay PAYE to the Ghana Revenue Authority by the 15th of the following month.
Ghana changed its personal income tax bands part way through 2026. The Income Tax (Amendment) Act, 2026 (Act 1178), assented to on 26 August 2026, raised the tax-free threshold from GH¢490 to GH¢588 a month, and the Ghana Revenue Authority (GRA) applied the new table from 1 September 2026. This article gives the current table, explains how to reach chargeable income, and works through two payslips. For the same rules in Nigeria and Kenya, see our payroll guide for Nigeria, Ghana and Kenya.
The current monthly and annual bands
| Monthly chargeable income | Annual equivalent | Rate | Maximum tax in monthly band |
|---|---|---|---|
| First GH¢588 | First GH¢7,056 | 0% | GH¢0 |
| Next GH¢80 | Next GH¢960 | 5% | GH¢4.00 |
| Next GH¢100 | Next GH¢1,200 | 10% | GH¢10.00 |
| Next GH¢2,900 | Next GH¢34,800 | 17.5% | GH¢507.50 |
| Next GH¢16,000 | Next GH¢192,000 | 25% | GH¢4,000.00 |
| Next GH¢30,332 | Next GH¢363,984 | 30% | GH¢9,099.60 |
| Above GH¢50,000 | Above GH¢600,000 | 35% | 35% of the excess |
Compared with the earlier schedule under Act 1111, the zero-rate band is wider, but the 5%, 10%, 17.5% and 30% bands are narrower, so the 25% and 30% rates now start at lower incomes. The result is not a cut for everyone. On our own comparison of the two tables, which a Ghanaian adviser can confirm for your payroll, an employee on GH¢1,000 to about GH¢3,700 pays roughly GH¢11 a month less, while one above about GH¢3,800 pays slightly more: about GH¢6 a month more at GH¢10,000 and about GH¢38 more at GH¢60,000. Because the change took effect in September, pay for January to August 2026 was taxed on the earlier table, and annual reconciliations for 2026 will straddle both.
From gross pay to chargeable income
Ghana taxes employment income monthly. Chargeable income is the total of cash pay and taxable benefits, less the deductions the law allows.
What is added
- Basic salary.
- Cash allowances, including transport, rent, risk, night duty, responsibility and child education allowances.
- Benefits in kind, such as a vehicle, electricity or water provided by the employer, valued under the rules in the Income Tax Act, 2015 (Act 896).
What is deducted
- The employee's SSNIT contribution of 5.5% of basic salary. Our article on SSNIT and Ghana's three-tier pensions explains the base and ceiling.
- Voluntary contributions to an approved provident fund or Tier 3 scheme, up to 16.5% of basic salary.
- Mortgage interest on one residential property.
- Qualifying donations to approved causes.
How to calculate PAYE, step by step
- Add basic salary, allowances and taxable benefits for the month.
- Subtract the employee's 5.5% SSNIT contribution and other allowable deductions.
- Apply the bands slice by slice, starting with the first GH¢588.
- Add the tax from each slice to get the month's PAYE.
- Deduct it from pay and include it in the monthly return to GRA, due by the 15th of the following month.
Worked example 1: GH¢4,000 a month
Basic salary is GH¢3,000 and allowances are GH¢1,000. SSNIT at 5.5% of basic is GH¢165, so chargeable income is GH¢3,835.
| Slice | Rate | Tax |
|---|---|---|
| First GH¢588 | 0% | GH¢0.00 |
| Next GH¢80 | 5% | GH¢4.00 |
| Next GH¢100 | 10% | GH¢10.00 |
| Next GH¢2,900 | 17.5% | GH¢507.50 |
| Remaining GH¢167 | 25% | GH¢41.75 |
| Total PAYE | GH¢563.25 |
Net pay is GH¢4,000 − GH¢165 − GH¢563.25 = GH¢3,271.75. The effective rate on chargeable income is about 14.7%.
Worked example 2: GH¢15,000 a month
Basic salary is GH¢12,000 and allowances are GH¢3,000. SSNIT is GH¢660, so chargeable income is GH¢14,340. Tax is GH¢4.00 + GH¢10.00 + GH¢507.50 on the lower bands, plus 25% of the remaining GH¢10,672 (GH¢2,668.00), giving GH¢3,189.50. Net pay is GH¢15,000 − GH¢660 − GH¢3,189.50 = GH¢11,150.50.
Effective rates at a glance
Because each rate applies only to its own slice, the average rate is well below the top band an employee reaches. The table applies the September 2026 bands to monthly chargeable income, after SSNIT.
| Monthly chargeable income | Monthly PAYE | Effective rate |
|---|---|---|
| GH¢1,000 | GH¢54.60 | 5.5% |
| GH¢3,000 | GH¢404.60 | 13.5% |
| GH¢5,000 | GH¢854.50 | 17.1% |
| GH¢10,000 | GH¢2,104.50 | 21.0% |
| GH¢25,000 | GH¢6,121.10 | 24.5% |
| GH¢60,000 | GH¢17,121.10 | 28.5% |
Handling the September 2026 switch
Payroll software should apply the earlier table to pay dates up to August 2026 and the new table from September. Do not re-run January to August on the new bands unless GRA issues guidance requiring it. Keep both tables in your records, because the employer's annual return for 2026, due by 30 April 2027, will reflect tax deducted under each. Employees who compare an August and a September payslip will see take-home pay move by a few cedis, up for lower earners and down for higher earners, with no change in salary. A short note to staff explaining why avoids a wave of payroll queries.
Bonuses, overtime and non-residents
- Bonus
- For residents, cumulative bonuses in the year up to 15% of annual basic salary are taxed at a final 5%. Any excess is added to ordinary pay and taxed at the band rates.
- Overtime
- Junior staff whose qualifying employment income does not exceed GH¢18,000 a year pay a final 5% on overtime up to 50% of monthly basic salary, and 10% on the excess. Other overtime is taxed at the band rates.
- Non-residents
- Non-resident employees are taxed at a flat rate rather than the bands. Published sources differ on whether that rate is 25% or 20%, so get written confirmation from GRA before running payroll for a non-resident.
Errors in these special rules are common because they need separate pay codes. A bonus run through ordinary pay is over-taxed; overtime given the 5% rate for a manager who does not qualify is under-taxed, and the employer bears the shortfall.
Deadlines and penalties
Monthly PAYE returns and payment are due by the 15th of the month after the deduction, through the GRA Taxpayers' Portal. The employer's annual PAYE return, with employee schedules, is due by 30 April after the end of the year. Tax not paid by its due date attracts interest at 125% of the statutory rate, which is linked to the Bank of Ghana policy rate, compounded monthly. A withholding agent cannot pass its own interest on to employees. Our payroll deadlines article compares Ghana's dates with Nigeria's and Kenya's.
Where Pryme fits
Pryme payroll covers Ghana as well as Nigeria and Kenya. The Pryme business account holds NGN, USD, GBP and EUR, so ask us how cedi salaries and remittances are funded and paid before you plan your first Ghana run. Whatever the route, the duties in this article stay with you as employer: set PAYE and SSNIT aside on pay day and remit SSNIT within 14 days of month end and PAYE by the 15th. Above a threshold you set, a second named approver must sign off before money moves, and bulk payouts check account names before you approve. For the full employer picture across the three countries, read our payroll guide.
Questions people ask
What is the tax-free income in Ghana in 2026?
From 1 September 2026, the first GH¢588 of monthly chargeable income, or GH¢7,056 a year, is taxed at 0%. Before September it was GH¢490 a month.
Is SSNIT deducted before PAYE in Ghana?
Yes. The employee's 5.5% SSNIT contribution is deducted from pay before PAYE is calculated, so it reduces chargeable income.
When is PAYE due in Ghana?
Monthly PAYE returns and payment are due to GRA by the 15th of the following month. The employer's annual return is due by 30 April.
How is a bonus taxed in Ghana?
Bonuses up to 15% of annual basic salary are taxed at a final 5% for residents. Any amount above that is added to ordinary income and taxed at the band rates.
What is the highest income tax rate in Ghana?
35%, on monthly chargeable income above GH¢50,000, or annual income above GH¢600,000.
Sources
- Ghana Revenue Authority: PAYE · accessed Oct 2026
- TaxLawGH (MSL Business School): Ghana PAYE · accessed Oct 2026
- Modern Ghana: Review of the Income Tax (Amendment) Act 2026 · accessed Oct 2026
- TaxLawGH (MSL Business School): Ghana tax penalties · accessed Oct 2026
- TaxLawGH (MSL Business School): Ghana pensions and retirement tax · accessed Oct 2026
This article is general information, not financial, legal or tax advice. Products described are provided under the terms on this site and are subject to regulation and eligibility.