Ghana Rental Income Guide 2026

Overview — Rental Income Tax in Ghana

Rental income from letting or leasing of immovable property (land and buildings) is chargeable to income tax in Ghana. The tax treatment depends on the type of landlord and the use of the property. For individuals letting residential property, a final withholding tax of 15% on gross rental income applies, unless the individual opts for assessment under the progressive income tax rates. For companies and commercial property, the rate is 8% withholding tax on gross rent. The tenant is responsible for withholding the tax and remitting it to the Ghana Revenue Authority within 15 days of the payment. Landlords must ensure their tenants issue withholding tax certificates as evidence of tax paid.

Residential Property — 15% WHT on Gross Rent

For individual landlords letting residential property, the rental income tax is a 15% withholding tax on gross rent. This is a final tax for most individual landlords, meaning no further tax liability arises on the rental income. The tenant (or property manager) deducts 15% from the rent before paying the landlord and remits the withheld amount to GRA. The landlord receives a withholding tax certificate (Form WHT 1A) as proof of tax payment. The 15% WHT applies regardless of whether the property is furnished or unfurnished. Service charges and utilities reimbursed by the tenant are generally not subject to WHT if separately identified.

Commercial Property — 8% WHT

For commercial property (offices, retail space, warehouses) and for corporate landlords, the withholding tax rate on gross rent is 8%. Companies receiving rental income may elect to include the rental income in their standard corporate tax return and claim deductions for expenses, with credit given for the 8% WHT already paid. The 8% rate also applies to rents paid by Ghanaian residents to non-resident landlords (subject to treaty relief). Commercial property includes any property used for business, professional, or industrial purposes.

Opting for Assessment — Deductions for Expenses

Individual landlords may elect to be assessed under the progressive income tax rates (0–35%) instead of the final 15% WHT. This may be beneficial where allowable expenses significantly reduce the net rental income. Deductible expenses include:

• Repairs & maintenance — not capital improvements
• Property management fees — paid to licensed agents
• Insurance premiums — building and fire insurance
• Mortgage interest — interest on loans used to acquire or improve the property
• Property rates — paid to MMDAs
• Agency & legal fees — for tenant acquisition and lease agreements

To claim deductions, the landlord must file an annual rental income return with GRA by 30 April. The election must be made in the annual return; otherwise, the 15% final WHT applies.

Vacant Property Rules

Rental income is only taxable when the property is actually let. There is no deemed rental income for vacant or owner-occupied properties. However, property rates (local government tax) continue to apply regardless of occupancy. If a property is let for only part of the year, the rental income for that period is subject to tax. Expenses incurred during vacant periods (e.g., security, maintenance) may be deducted if the landlord has elected for assessed taxation. Short-term letting (e.g., Airbnb, holiday rentals) is also subject to rental income tax — the 15% WHT applies on the gross rent received from each booking.

FAQs

Who is responsible for withholding rental tax?

The tenant (lessee) is responsible for withholding the tax at source and remitting it to GRA within 15 days of the rent payment. If the tenant fails to withhold, the landlord remains liable for the tax. Property agents acting on behalf of tenants also have withholding obligations.

What if I rent my property through an agency?

The agency may be designated as the withholding agent. The agency must deduct the 15% or 8% WHT before remitting net proceeds to you and issue a withholding tax certificate.

Are advance rent payments (e.g., 2 years upfront) taxable in one year?

Yes, rental income is taxable in the year it is received, regardless of the period it covers. If you receive 2 years' rent in a single payment, the full amount is subject to WHT in that year.

Disclaimer

This guide provides general information about Ghanaian rental income tax for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Ghanaian tax advisor or the Ghana Revenue Authority for advice specific to your situation. InvestmentKit does not provide tax advice.