Taxes in Ghana for Expats 2026: Residency Can Raise Your Rate

Taxes in Ghana for expats depend on residency status, contrary to many guides which incorrectly assume residency is always cheaper. Expats are taxed at a flat 35% rate if they are residents, while non-residents pay a uniform 25% rate on their Ghanaian-source income. The progressive resident tax scale has seven steps, with tax rates ranging from 5% to 35%, depending on the income level.

For expats earning between 600,000 cedis (US$52,445) and above, the 35% rate is applied. Most expats will fall into the 25% tax band, which is also the rate for non-residents. Unlike residency, non-residency has no progressive relief or exempt bands, and all income is taxed at the same flat rate. Additionally, residency affects the scope of taxable income.

Residents are taxed on their worldwide income, while non-residents are only taxed on income generated within Ghana. There is a narrow exemption for employment income when an individual is present outside Ghana for over 183 days. Overall, residency in Ghana brings worldwide income into the tax base, with no tax holidays or abatements to offset it.

For expats earning in Ghana, the high threshold for the top 35% tax rate is not typically reached, making the 25% rate for non-residents more advantageous. Conversely, retirees with foreign pensions may find Ghana's system less favorable, as it taxes pensions as worldwide income.