Ghana PAYE Tax Changes 2026: New Rates Effective September 1

Ghana has introduced new personal income tax bands under the Income Tax (Amendment) Act, 2026 (Act 1178). The new rates took effect on 1 September 2026 and change the PAYE employers deduct from employees' salaries every month.

If your September payroll has already been run, check that it used the new bands. Here is what changed and what to do about it.

Ghana's New PAYE Rates at a Glance

These are the monthly bands for resident individuals published by the Ghana Revenue Authority, applied to chargeable income:

• First GH₵588: 0%
• Next GH₵80: 5%
• Next GH₵100: 10%
• Next GH₵2,900: 17.5%
• Next GH₵16,000: 25%
• Next GH₵30,332: 30%
• Above GH₵50,000: 35%

On an annual basis, the tax-free band is GH₵7,056 and the 35% rate applies to chargeable income above GH₵600,000. Non-resident individuals continue to be taxed at a flat 25%.

What Changed From the Previous PAYE Bands?

The rates themselves have not changed. There are still seven bands, from 0% to 35%. What changed is the width of each band:

• Tax-free band: GH₵490 → GH₵588
• 5% band: GH₵110 → GH₵80
• 10% band: GH₵130 → GH₵100
• 17.5% band: GH₵3,166.67 → GH₵2,900
• 25% band: GH₵16,000 → GH₵16,000 (unchanged)
• 30% band: GH₵30,520 → GH₵30,332
• 35% threshold: above GH₵50,416.67 → above GH₵50,000

The tax-free threshold has risen by 20%, but the 5%, 10% and 17.5% bands are narrower. That means income reaches the 25% band sooner: at GH₵3,668 a month instead of GH₵3,896.67.

The result is that employees with lower chargeable incomes pay slightly less PAYE, while those above roughly GH₵3,817 a month pay slightly more. The monthly difference is small either way, but it appears on every payslip, and a payroll still running the old table will deduct the wrong amount for almost every employee.

When Do the New PAYE Rates Take Effect?

The new rates apply from 1 September 2026, starting with September 2026 payroll. July and August payroll stay on the previous rates, and no adjustment is needed for those months because of this change.

What Does This Mean for Employers?

Employers are responsible for calculating PAYE, deducting it and paying it to the GRA. When the bands change, everything in your payroll that relies on a tax table has to change too:

• Payroll software and spreadsheets need the new bands. A spreadsheet with hard-coded thresholds will keep applying the old figures until someone updates every formula.
• Payslips need to show the correct PAYE. Employees will compare September with August, and the difference needs to be explainable.
• PAYE returns for September, due by 15 October 2026, need to reflect the new amounts.
• Gross-up calculations for employees on fixed net-pay arrangements need to be rerun, because the tax cost of guaranteeing that net salary has changed.

If your September payroll was processed using the old table, recalculate it and correct any difference before you file the September return.

What Does This Mean for Employees?

For most employees, the change in take-home pay compared with August is small:

• Employees with monthly chargeable income below about GH₵3,817 pay up to GH₵11.15 less PAYE each month.
• Employees above that level pay slightly more: GH₵6.00 a month for most middle earners, around GH₵17 for chargeable incomes between GH₵20,000 and GH₵50,000, and around GH₵38 in the top band.

Chargeable income is what remains after the employee's 5.5% SSNIT contribution and any approved reliefs are deducted, so the gross salary at which each of these points is reached will be higher.

Example PAYE Calculations

The examples below use monthly chargeable income under the new bands.

GH₵3,000 a month

• First GH₵588 at 0%: GH₵0.00
• Next GH₵80 at 5%: GH₵4.00
• Next GH₵100 at 10%: GH₵10.00
• Remaining GH₵2,232 at 17.5%: GH₵390.60
• Monthly PAYE: GH₵404.60 (effective rate 13.5%). Previously GH₵415.75, so GH₵11.15 less.

GH₵5,000 a month

• First GH₵3,668 (0% to 17.5% bands): GH₵521.50
• Remaining GH₵1,332 at 25%: GH₵333.00
• Monthly PAYE: GH₵854.50 (effective rate 17.1%). Previously GH₵848.50, so GH₵6.00 more.

GH₵10,000 a month

• First GH₵3,668 (0% to 17.5% bands): GH₵521.50
• Remaining GH₵6,332 at 25%: GH₵1,583.00
• Monthly PAYE: GH₵2,104.50 (effective rate 21.0%). Previously GH₵2,098.50, so GH₵6.00 more.

GH₵20,000 a month

• First GH₵3,668 (0% to 17.5% bands): GH₵521.50
• Next GH₵16,000 at 25%: GH₵4,000.00
• Remaining GH₵332 at 30%: GH₵99.60
• Monthly PAYE: GH₵4,621.10 (effective rate 23.1%). Previously GH₵4,603.67, so GH₵17.43 more.

What Should Employers Do Now?

• Update your tax tables. Replace the old monthly bands with the new ones in your payroll system or spreadsheet.
• Test your payroll. Run sample calculations, such as the examples above, and confirm the results match.
• Recalculate affected employees. Identify anyone whose September PAYE was calculated on the old bands.
• Verify September payroll. Correct any under- or over-deductions and update payslips so employees can see what changed.
• Keep records. Keep the old and new calculations and the date you switched tables, in case the GRA asks.
• File PAYE correctly. Make sure your September PAYE return, due 15 October 2026, reflects the new rates.

How Akatua Handles PAYE Changes

Akatua automates PAYE calculations using Ghana's statutory tax tables. When the bands change, the tables are updated in the system, so payroll teams do not have to rebuild formulas or recheck every threshold by hand. SSNIT Tier 1 and Tier 2 deductions, payslips and filing-ready reports all draw on the same calculation, so a rate change flows through everywhere at once.

Frequently Asked Questions

What are the new PAYE rates in Ghana for 2026?

From 1 September 2026, resident employees pay 0% on the first GH₵588 of monthly chargeable income, then 5%, 10%, 17.5%, 25% and 30% on successive bands, and 35% on chargeable income above GH₵50,000 a month.

What is the tax-free income threshold in Ghana?

GH₵588 a month, or GH₵7,056 a year, for resident individuals. It was previously GH₵490 a month.

Which law introduced the new PAYE rates?

The Income Tax (Amendment) Act, 2026 (Act 1178).

Do employers need to adjust July and August payroll?

No. The previous rates apply up to 31 August 2026. Only payroll from September 2026 onwards uses the new bands.

What if we already ran September payroll on the old rates?

Recalculate September PAYE using the new bands, correct the difference for affected employees and make sure your September PAYE return reflects the correct amounts.

Is PAYE calculated on gross salary?

No. PAYE is calculated on chargeable income, which is employment income after deducting the employee's 5.5% SSNIT contribution (calculated on basic salary) and any approved reliefs.

How are non-resident employees taxed?

Non-resident individuals are taxed at a flat rate of 25%.

Make Sure Your PAYE Is Using the New Rates

Already run September payroll? Check that your PAYE calculations used the new bands before you file.

See how Akatua automates Ghana payroll and statutory deductions.