Are you thinking about homeownership? Great! But how well do you know about property taxes and Ghana real estate laws?
Property taxes help to provide essential services and infrastructure like roads, schools, and waste management. However, many homeowners struggle with understanding how much they owe and how to pay.
In this guide, we break everything down—simply and clearly—so you can stay compliant and avoid unnecessary penalties. We also add homeowner tips to help you enjoy your new home.
Understanding Property Taxes in Ghana
A property tax or rate is a yearly charge or levy imposed on immovable properties or real estate that you pay to your local government. Anyone who owns land, a house, or any immovable property must pay this tax.
Local government authorities—Metropolitan, Municipal, and District Assemblies (MMDAS)—use these taxes to fund local development, including providing streetlights, sanitation, and better roads!
The MMDAS handles issues of tax assessments, while the Ghana Revenue Authority, GRA, helps the local authorities with property rate collections.
Together, they jointly run a Unified Common Property Rate Platform set up for the implementation of property rates in the country. You can access the platform at MyAssembly.GOV.GH.
As a property owner or ratepayer, how much rate you pay depends on the assessed value of your property, the current property tax rate, available exemptions or reductions, and caps on increases.
It’s a common misunderstanding that only businesses pay property taxes—not true! Ghana real estate laws require every home or other property owner to pay, as long as their property is immovable.
Ghana Real Estate Laws
In Ghana, the Local Governance Act of 2016 (Act 936) spells out the requirements for property taxation. The Property Tax Act of 1961 (Act 69) also outlines how local government authorities should carry out assessments.
But what happens if you don’t pay?
If you pay your property tax late or don’t pay at all, you’ll be liable for penalties and interest charges (and these add up fast!).
Your property could even be seized or auctioned if you are unable to pay property taxes for an extended period. Paying regularly and on time will save you these troubles.
And, one more thing: you must keep up with the latest tax rates in your municipality—they may change occasionally.
How Property Tax Rates Are Assessed
Property tax rates in Ghana vary by district, but they’re typically within the range of 0.5% to 1.5% of your property’s value. So, how do the local assemblies calculate how much tax you should pay?
They check:
- Location of your property. Prime areas such as Accra and Kumasi pay more taxes than rural areas.
- Property type. Is your property residential, commercial, or industrial? Each has different rates.
- Size & value. Expect to pay higher taxes if your property is bigger and more developed.
Who Decides How Much You Pay?
A property valuer from the Lands Commission will inspect your property to determine its rateable value, i.e., how much it is worth for tax purposes. This value is sent to your municipal or district assembly.
The Assembly applies a set tax rate to it, which is then multiplied by your property’s rateable value to get your tax amount.
Types of Property Taxes:
The District Assembly can charge two types of rates:
- General Rate—A tax on all properties to raise funds for the Assembly.
- Special Rate—A fee paid by residents (aged 18-69) or by property owners. The Assembly must, however, consult with local leaders before setting these rates.
Who Must Pay Property Tax?
If you own a building, house, or structure, you must pay property tax. Even if you don’t live in a district, you still have to pay taxes.
How is the Value of Your Property Calculated?
The rateable value of your property is based on how much it would cost to rebuild the property if it were damaged.
For owner-occupied homes, the tax is based on a maximum of 50% of this cost. For rented or commercial properties, it is based on at least 75% of the cost.
How to Pay Property Taxes
The District Assembly will announce when taxes are due, usually at the beginning of the year. You must pay at the designated office or to an authorised collector.
Visit your district assembly office, or you can pay through partner banks—some areas allow mobile money payments. Some assemblies have online payment platforms. Ensure to cross-check payment details with your MMDA!
Pro tip: Keep copies of your receipts—you’ll need them as proof of payment!
Find out more about property taxes in Ghana in the video below
Exemptions, Discounts, and Dispute Resolution
Keeping a home indeed comes with many obligations, including property taxes. Thankfully, not everyone has to pay the full rates!
You might qualify for exemptions if you own a school, church, public hospital, or other non-profit organisation.
You can also get a discount if you’re a pensioner, a person with a disability, or have a low-income property.
Sometimes, you may receive an unfair tax bill. In this case, you can challenge it! Visit your local MMDA with evidence—this can be your property valuation reports or receipts.
Should they ignore your complaint, you have the right to legal action!
Check out an analysis of Ghana’s property rates in this video below
Practical Homeowners Tips
- Budget for it! Treat property tax like your electricity or water bill—set money aside yearly.
- Double-check your assessment! Mistakes can happen—you need to confirm your rate to avoid overpaying.
- Never miss a payment! Late fees can be unpleasant, and unpaid taxes can cause legal trouble.
- Keep records! Ensure to always collect and save your tax receipts, assessments, and any correspondence with authorities—you may need them when you decide to sell or transfer your property.
- Stay informed. Regularly review updates from your local MMDAS on tax rates, assessment methods, and payment deadlines.
- And most importantly, ask questions! If you’re unsure about anything, visit your local assembly before deadlines hit.
Reassessments are ongoing, with many cities revaluing properties. This may change your tax bill, so you can expect an update soon!
If you’re in Accra or have your property within the Accra Metropolitan Assembly (AMA), you can find more about the property rate arrangements here.
If you want to stay ahead of your taxes, follow updates from the GRA or your MMDA so you’re not caught off guard.
Other Property Taxes
Rent Tax
Rent tax is a tax charged on rent income—the amount received from letting or leasing a property to another person. The rate for rent tax is 8% for residential premises and 15% for commercial and non-residential premises.
Any business that receives income from letting or leasing a property must pay rent tax. It must be paid within 30 days after the rent income is received.
Ground Rent
Ground rent is a fee landowners pay to the government or the traditional landowners—stool, skin, clan, or family—for using the land. If you lease land or rent it for a long time, you must pay ground rent every year as part of your agreement.
The Lands Commission collects this rent on behalf of the government. It applies to both individuals and businesses that have leased land.
If you don’t pay, the government can take back the land.
The Land Valuation Division of the Lands Commission assesses the value of the land. This value determines the ground rent that the parties will pay on it.
Conclusion
Property taxes might seem confusing, but they don’t have to be. Just know your tax rate and payment deadlines.
Check for exemptions or discounts you might qualify for. And then pay on time to avoid unnecessary penalties.