- Tax & Compliance
PAYE in Ghana 2026: How It's Calculated and What It Means for Your Monthly Salary
- Published date
- Author
- By Dabaindeh Findley-Antonio
PAYE (Pay As You Earn) is the income tax your employer deducts from your salary every month and pays to the Ghana Revenue Authority (GRA). Since 1 September 2026, the first GH₵588 of your monthly taxable income is tax-free. Everything above that is taxed in bands from 5% to 35%.
Here is what that looks like on a real salary. On a GH₵5,000 monthly basic salary, you pay GH₵275 in SSNIT and GH₵785.75 in PAYE, so you take home GH₵3,939.25.
This guide covers the current GRA tax bands, how PAYE is worked out step by step, and worked examples you can check against your own payslip. If you just want your number, use the free Akatua PAYE calculator.
What is PAYE in Ghana?
PAYE is how Ghana collects income tax on employment income. It is set out in the Income Tax Act, 2015 (Act 896). Your employer works out the tax, deducts it from your pay and sends it to GRA. You do not file it yourself.
PAYE applies to more than your basic salary. It covers:
- Basic salary
- Cash allowances, such as transport, rent, risk, responsibility and night duty allowances
- Benefits in kind, such as a company car, fuel, accommodation, electricity or water, valued in cedis and added to your income
A few groups are taxed differently. Non-resident employees pay a flat 25%. Casual workers, paid daily and engaged for no more than six months, have a flat 5% deducted (GRA).
Ghana PAYE tax bands 2026 (from 1 September)
These are the GRA monthly bands for resident employees, in force from 1 September 2026 (GRA). Each rate applies only to the slice of income inside its band, not to your whole salary.
| Band | Monthly chargeable income (GH₵) | Rate | Tax on this band (GH₵) | Total tax at top of band (GH₵) |
|---|---|---|---|---|
| First 588 | 0 to 588 | 0% | 0.00 | 0.00 |
| Next 80 | 588 to 668 | 5% | 4.00 | 4.00 |
| Next 100 | 668 to 768 | 10% | 10.00 | 14.00 |
| Next 2,900 | 768 to 3,668 | 17.5% | 507.50 | 521.50 |
| Next 16,000 | 3,668 to 19,668 | 25% | 4,000.00 | 4,521.50 |
| Next 30,332 | 19,668 to 50,000 | 30% | 9,099.60 | 13,621.10 |
| Above 50,000 | Over 50,000 | 35% | 35% of the excess | 13,621.10 plus 35% of the excess |
On an annual basis, the tax-free amount is GH₵7,056 and the 35% rate starts above GH₵600,000.
What changed in September? The new bands come from the Income Tax (Amendment) Act, 2026 (Act 1178). The tax-free band rose from GH₵490 to GH₵588 a month, and the other bands were reshaped. The rates themselves did not change. Most people earning below about GH₵3,800 a month in chargeable income now pay slightly less, and higher earners pay slightly more. July and August payroll stayed on the old bands. For the full before-and-after comparison, see Ghana PAYE Tax Changes 2026: New Rates Effective September 1.
How PAYE is calculated, step by step
PAYE is charged on your chargeable income, not your gross salary. Chargeable income is your taxable pay after your own SSNIT contribution and other approved reliefs come off.
- Add up your taxable pay. Basic salary, plus cash allowances, plus the value of any benefits in kind.
- Subtract your SSNIT contribution. Employees contribute 5.5% of basic salary, and this comes off before tax. Approved provident fund contributions of up to 16.5% of basic salary also reduce chargeable income (GRA).
- Apply the tax bands. Run your chargeable income through the bands above, from the bottom up.
- Work out your take-home pay. Net pay is gross pay minus SSNIT minus PAYE, minus any other deductions such as loans or voluntary Tier 3 pension contributions.
Your employer also pays 13% of your basic salary into SSNIT. That is paid on top of your salary, so it does not reduce your pay or your PAYE.
Quick formula
Once you know which band your chargeable income falls in, you can skip the band-by-band maths:
| Monthly chargeable income (GH₵) | Monthly PAYE |
|---|---|
| Up to 588 | GH₵0 |
| 588 to 668 | 5% of the amount over 588 |
| 668 to 768 | GH₵4.00 + 10% of the amount over 668 |
| 768 to 3,668 | GH₵14.00 + 17.5% of the amount over 768 |
| 3,668 to 19,668 | GH₵521.50 + 25% of the amount over 3,668 |
| 19,668 to 50,000 | GH₵4,521.50 + 30% of the amount over 19,668 |
| Over 50,000 | GH₵13,621.10 + 35% of the amount over 50,000 |
Worked examples: what common salaries take home
These examples use the September 2026 bands and assume the whole salary is basic salary, with no allowances or other reliefs. Figures are rounded to the nearest pesewa.
| Monthly basic salary (GH₵) | Employee SSNIT 5.5% (GH₵) | Chargeable income (GH₵) | PAYE (GH₵) | Take-home pay (GH₵) | PAYE as % of salary |
|---|---|---|---|---|---|
| 2,000 | 110.00 | 1,890.00 | 210.35 | 1,679.65 | 10.5% |
| 3,000 | 165.00 | 2,835.00 | 375.72 | 2,459.28 | 12.5% |
| 5,000 | 275.00 | 4,725.00 | 785.75 | 3,939.25 | 15.7% |
| 10,000 | 550.00 | 9,450.00 | 1,967.00 | 7,483.00 | 19.7% |
| 20,000 | 1,100.00 | 18,900.00 | 4,329.50 | 14,570.50 | 21.6% |
Full breakdown: GH₵5,000 a month
- SSNIT: 5.5% × GH₵5,000 = GH₵275.00
- Chargeable income: GH₵5,000 − GH₵275 = GH₵4,725.00
- PAYE, band by band:
- First GH₵588 at 0% = GH₵0.00
- Next GH₵80 at 5% = GH₵4.00
- Next GH₵100 at 10% = GH₵10.00
- Next GH₵2,900 at 17.5% = GH₵507.50
- Remaining GH₵1,057 at 25% = GH₵264.25
- Total PAYE = GH₵785.75
- Take-home pay: GH₵5,000 − GH₵275 − GH₵785.75 = GH₵3,939.25
Check it with the quick formula: GH₵521.50 + 25% × (GH₵4,725 − GH₵3,668) = GH₵785.75.
Why allowances change the answer
SSNIT is charged on basic salary only, so how your pay is split matters. Take the same GH₵5,000, made up of a GH₵4,000 basic salary and a GH₵1,000 transport allowance:
- SSNIT: 5.5% × GH₵4,000 = GH₵220.00
- Chargeable income: GH₵5,000 − GH₵220 = GH₵4,780.00
- PAYE: GH₵521.50 + 25% × (GH₵4,780 − GH₵3,668) = GH₵799.50
- Take-home pay: GH₵5,000 − GH₵220 − GH₵799.50 = GH₵3,980.50
Take-home pay is GH₵41.25 higher, because less goes to SSNIT. The trade-off is a smaller pension contribution.
Want to try your own salary? Enter it in the Akatua PAYE calculator to see your SSNIT, PAYE and take-home pay instantly.
What else affects your PAYE
A few common pay items follow their own rules (GRA):
- Bonuses. An annual bonus of up to 15% of your annual basic salary is taxed at a flat 5%. Anything above that is added to your income and taxed at the normal bands.
- Overtime. Special rates apply only to junior staff whose qualifying income for the year is GH₵18,000 or less. Overtime up to 50% of monthly basic salary is taxed at 5%, and the excess at 10%. It is not added to your basic salary.
- Mortgage interest. Interest on a mortgage for one residential home can be claimed as relief.
- Donations. Contributions to approved worthwhile causes can reduce your chargeable income.
If your payslip shows a different PAYE figure from the examples above, one of these items, or an allowance, is usually the reason.
What employers need to do
Employers are responsible for getting PAYE right for every employee, every month:
- Deduct PAYE each payday using the current bands. Since September 2026 payroll, that means the new Act 1178 bands.
- File and pay by the 15th. Monthly PAYE returns are due on or before the 15th of the month after the deduction (GRA).
- Pay SSNIT on time for both shares: 5.5% from the employee and 13% from the employer.
- Include allowances and benefits in taxable pay, and apply the special bonus and overtime rates correctly.
- Keep records of every calculation, in case GRA asks to see how the figures were reached.
Doing this by hand, or in a spreadsheet, gets harder with every new hire and every change to the bands.
Frequently asked questions
Is PAYE calculated on gross salary?
No. PAYE is calculated on chargeable income, which is your gross taxable pay minus your 5.5% SSNIT contribution and any other approved reliefs.
What percentage is PAYE in Ghana?
There is no single percentage. Income is taxed in bands from 0% to 35%. In practice, PAYE takes about 12.5% of a GH₵3,000 salary and about 19.7% of a GH₵10,000 salary.
How much salary is tax-free in Ghana?
The first GH₵588 of monthly chargeable income, or GH₵7,056 a year, is tax-free from 1 September 2026. It was GH₵490 a month before that.
What does PAYE mean on my payslip?
It is the income tax your employer deducted from your pay that month and paid to GRA on your behalf.
When did the new PAYE rates start?
The new bands took effect on 1 September 2026, under the Income Tax (Amendment) Act, 2026 (Act 1178). September payroll was the first to use them.
Are allowances taxed?
Yes. Cash allowances such as transport, rent and risk allowances are added to your salary and taxed under PAYE. Benefits in kind, such as a company car, are also valued and taxed.
Does my employer's SSNIT contribution reduce my PAYE?
No. Only your own 5.5% contribution comes off before tax. Your employer's 13% is paid on top of your salary.