How Taxes Are Calculated on Salaries GRA Chart 2024
How Taxes Are Calculated on Salaries GRA Chart
The calculation of taxes on salaries through the GRA Chart is not based on a predetermined fixed rate such as 16.5%, 18%, 15%, or 20%. Instead, it is determined by the income bracket within which your earnings fall. Refer to the GRA Chart below to ascertain the applicable tax rate corresponding to your income level.
The table below details the monthly income tax bands and rates generally applicable to the chargeable income of resident individuals:
| Year 2024 | Chargeable Income GH¢ | Rate % | Tax Payable GH¢ | Cumulative Income GH¢ | Cumulative Tax GH¢ |
|---|---|---|---|---|---|
| First | 490 | 0 | 0 | 490 | 0 |
| Next | 110 | 5 | 5.5 | 600 | 5.5 |
| Next | 130 | 10 | 13.00 | 730 | 18.5 |
| Next | 3,166.67 | 17.5 | 554.17 | 3,896.67 | 572.67 |
| Next | 16,000 | 25 | 4,000.00 | 19,896.67 | 4,572.67 |
| Next | 30,520 | 30 | 9156.00 | 50,416.67 | 13,728.67 |
| Exceeding | 50,000.00 | 35 | 17,500.00 |
The table below indicates the annual income tax bands and rates generally applicable to the chargeable income of resident individuals:
| Year 2024 | Chargeable Income GH¢ | Rate % | Tax Payable GH¢ | Cumulative Income GH¢ | Cumulative Tax GH¢ |
|---|---|---|---|---|---|
| First | 5,880 | 0 | 0 | 5,880 | 0 |
| Next | 1,320 | 5 | 66 | 7,200 | 66 |
| Next | 1,560 | 10 | 156 | 8,760 | 222 |
| Next | 38,000 | 17.5 | 6,650 | 46,760 | 6,872 |
| Next | 192,000 | 25 | 48,000 | 238,760 | 54,872 |
| Next | 366,240 | 30 | 109,872 | 605,000 | 164,744 |
| Exceeding | 600,000 | 35 | 210,000 |
These rates took effect from January 1st, 2024.
25 % Increment of Public Sector Base Pay in July 2024 Second Tranche
Using the GRA CHART Below 2023
| GHANA REVENUE AUTHORITY CHART 2023 | |||||
| YEAR 2023 | RATE | RATE DIFFERENCE | CUMMULATIVE INCOME | TAX PAYABLE | CUMMULATIVE TAX |
| FIRST | – | 5% | 402 | – | – |
| NEXT | 5% | 5% | 512 | 5.5 | 5.5 |
| NEXT | 10% | 7.5% | 642 | 13 | 18.5 |
| NEXT | 17.50% | 7.5% | 3642 | 525 | 543.5 |
| NEXT | 25% | 5% | 20037 | 4098.8 | 4642.25 |
| NEXT | 30% | 5% | 50000 | 8988.9 | 13631.15 |
| EXCEEDING | 35% | ||||
GRA Upfront Relief; Tax Relief on Monthly Basis we didn’t Know
So let us take the first taxable income in 1L which is Gh₵535.90
Based on the chart, this is how it is calculated.
The amount is greater than the first amount which is Gh₵402 so we do this (Gh₵535.90 — Gh₵402)(5%) = Gh₵1.195
Then, you realize that the taxable income is still greater than the next cumulative income Gh₵512 so we have (Gh₵535.90 — Gh₵512)(5%)=Gh₵6.695.
Then we move to the next cumulative income but you realize that the amount next which is Gh₵642 is greater than the taxable income so we end it there.
Now you will add up the two sums you had which is Gh₵1.195 + Gh₵6.695 = Gh₵7.89
Hope this maths is clear on how to calculate the tax on your income.
For informative purposes only.
Don’t Forget you can go for Tax relief. GRA Upfront Relief; Tax Relief on Monthly Basis we didn’t Know
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Credit; Kwame Kyeremateng R/C JHS. TEL: 0550127147
