Tax calculation in Ghana

 

Tax calculation in Ghana

 

The table below details the new monthly income tax bands and rates generally applicable to the chargeable income of resident individuals:

Year 2021	Chargeable Income GH¢	Rate %	Tax Payable GH¢	Cumulative Income GH¢	Cumulative Tax GH¢
First	319	0	0	319	0
Next	100	5	5	419	5
Next	120	10	12	539	17
Next	3 000.00	17.5	525	3 539.00	542
Next	16 461.00	25	4 115.25	20 000.00	4 657.25
Exceeding	20 000.00	30

The chargeable income of non-resident individuals is generally taxed at a flat rate of 25%.

The table below indicates the new annual income tax bands and rates generally applicable to the chargeable income of resident individuals:

Year 2021	Chargeable Income GH¢	Rate %	Tax Payable GH¢	Cumulative Income GH¢	Cumulative Tax GH¢
First	3,828	0	0	3,828	0
Next	1,200	5	60	5,028	60
Next	1,440	10	144	6,468	204
Next	36,000	17.5	6,300	42,468	6,504
Next	197,532	25	49,383	240,000	55,887
Exceeding	240,000	30

These rates took effect from January 1st, 2020.