Ghana: Parliament passes income tax bill raising presumptive tax threshold

Ghana’s Parliament has passed legislation to exempt minimum wage earners from income tax, revise personal income tax bands, and raise the presumptive tax turnover threshold to GHS 750,000.

Ghana’s Parliament has passed the Income Tax (Amendment) Bill, 2026, amending the Income Tax Act, 2015 (Act 896) to revise personal income tax bands for resident individuals and raise the turnover threshold for the presumptive tax regime.

The bill proposes to exempt minimum wage earners from income tax, following the government’s agreement on the 2026 National Daily Minimum Wage and Base Pay. The measure is intended to protect low-income and vulnerable workers, increase disposable income among lower-income earners, and strengthen the progressivity of the personal income tax regime.

The proposed bill would raise the presumptive tax turnover threshold to GHS 750,000 to align with the Value Added Tax registration threshold, which was increased from GHS 200,000 to GHS 750,000. The previous mismatch created compliance difficulties and administrative inconsistencies for small businesses.

The chargeable income of a resident individual for a year of assessment is taxed at the following rates:

Parliament passed the Bill on 28 July 2026, and it is now awaiting presidential assent.