Ghana Income Tax (Amendment) Act 2026: New PAYE Tax Bands and Rates Effective 1 September

Ghana has enacted the Income Tax (Amendment) Act, 2026 (Act 1178), assented to and gazetted on 26 August 2026. The Act revises the individual income tax bands applicable to PAYE calculations for resident employees. The Ghana Revenue Authority (GRA) has confirmed that these changes are effective from 1 September 2026.

Legislative Summary of Changes

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

• Ghana has enacted the Income Tax (Amendment) Act, 2026 (Act 1178), revising the individual income tax bands applicable to PAYE calculations for resident employees.
• The Ghana Revenue Authority (GRA) has confirmed that these changes are effective from 1 September 2026.

New Individual Income Tax Rates for PAYE: Effective 1 September 2026

The following table outlines the revised income tax bands and marginal rates for resident employees:

Important: Progressive Tax Rate Structure

Ghana's new tax structure introduces a progressive rate scale ranging from 0% on the first income bracket to 35% on the highest bracket. The tax-free threshold and each subsequent bracket are designed to provide tax relief to lower-income earners whilst ensuring higher earners contribute proportionally to the tax system.

Implementation and Effective Date

The new individual income tax bands are effective from 1 September 2026. All PAYE calculations for resident employees must use these new rates from that date onwards.

Official Resources and Release Notes

● Access the official publication of the Income Tax (Amendment) Act, 2026 (Act 1178).

● Refer to release note CM-19135, titled Annual amendments / Tax table updates, for more information.