GRA Announces New Income Tax Rates And Modified Taxation Threshold Under Amended Act

The Ghana Revenue Authority (GRA) has announced amendments to income tax rates following the passage of the Income Tax (Amendment) Act, 2026 (Act 1178), with the new rates taking effect from September 1, 2026.

In a public notice issued by its Domestic Tax Revenue Division, the Authority said the amendments affect Companies, Entities, Individuals, including Self-Employed Persons and Partnerships, and cover both the monthly and annual income tax bands for individuals as well as the turnover threshold for the Modified Taxation Scheme (MTS).

For the 2026 Year of Assessment, the first GH¢588 of monthly chargeable income will be tax-free, with the next GH¢80 taxed at 5 percent, the next GH¢100 at 10 percent, the next GH¢2,900 at 17.5 percent, the next GH¢16,000 at 25 percent, the next GH¢30,332 at 30 percent, and any amount exceeding GH¢50,000 taxed at 35 percent.

On an annual basis, the first GH¢7,056 will be tax-free, with the next GH¢960 at 5 per cent, the next GH¢1,200 at 10 percent, the next GH¢34,800 at 17.5 per cent, the next GH¢192,000 at 25 percent, the next GH¢363,984 at 30 percent, and any amount exceeding GH¢600,000 at 35 percent.

The Authority has also increased the turnover threshold for presumptive taxation under the Modified Taxation Scheme.

Under the new threshold, individuals whose annual business turnover is more than GH¢20,000 but does not exceed GH¢750,000 will be subject to a presumptive tax of 3 per cent of their annual business turnover.

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