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A Guide to Ghanaian Property Tax for New Homeowners

A Guide to Ghanaian Property Tax for New Homeowners

Many people don’t realise how life changing becoming a property owner can be. The entire experience, from putting in the offer to purchase to making the first mortgage payment, can be quite overwhelming. It’s no wonder then that most first time buyers don’t really consider property taxes and how they will be affected by them.

In Ghana property tax is levied annually by local authorities on the estimated value of the property, depending on the classification of the area where the property is located. The rates range from 0.5% to 3%. There are also different types of property tax, namely: property rates, ground rates and the actual property tax.

Property Rates
This is a levy paid to the District Assembly. It is paid annually on both residential and commercial real estate.

Ground Rates
This is paid to the Stool/Skin Lands Commission, in the case of the property belonging to the Skin/Stool for disbursement among the legitimate traditional owners; or to the Lands Commission for disbursement to the rightful owners. This is paid annually on residential and commercial real estate.

Property Tax
This is an annual tax charged on every real estate property, including land and is payable to the Internal Revenue Service. It is payable on residential and commercial properties. Property tax, popularly known in Ghana as property rate, paid on immovable property, is collected annually under the auspices of the Ghana Internal Revenue Service (IRS). The Domestic Tax Revenue Service charged with assessing and collection of property related taxes determines how much is to be paid by Ghanaian property owners.

In Accra rating zones or residential classes determine how much property tax will be levied on your property.

Below are some rating zones of the Accra Metropolitan Assembly(AMA):

• Residential Class 1A:
Achimota, Roman Ridge, Airport West, East Legon, Ridge Ambassadorial Enclave,
• Residential Class 1B:
Abelenkpe, Dworwulu, North Dworwulu, East Legon, West Legon, Ringway Estates, Nyaniba, Tesano.
• Residential Class 2A:
South Odorkor, Dansoman, New Dansoman Estates, Latebiokorshie, Mamprobi, Kanda Estates, Dansoman Estates, Nima, Asylum Down, Alajo, GREDA Estates, New Achimota.
• Residential Class2B:
Kwashieman, Sakaman, Abofu, Mataheko, West Abbosey Okai, North Alajo, Adabraka, , Kaneshie, Awudome Estates, North Kaneshie, Abeka, Fadama, Apenkwa, North Kaneshie Estates–CFC, Akweteman.
• Residential Class 3A:
, North Odorkor, Odorkor Old Town, Kwashieman Old Town, Korle Gonno, Mamprobi, Maamobi, Old Dansoman, Kotobabi Police Station, Kpehe, Alajo, Kotobabi, James Town, Agbobloshie, Abeka Lapaz, Bubuashie/New Fadama, Kisseman/Christian Village.
• Residential Class 3B:
Abossey Okai, Sukura, Russia, Sabon Zongo, Nima, Accra New-Town, Darkuman, North Abeka, Old Bubiashie, Nii Boyeman.
• Residential Class 3C:
Chorkor, Gbegbeise, Osu Amanfo/Alata.

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Resources: International Property Tax Institute