Authored by the expert who managed and guided the team behind the Ghana Property Pack
Yes, the analysis of Accra's property market is included in our pack
Property ownership in Accra comes with various taxes and fees that every investor should understand before making a purchase decision.
The Accra property tax system combines annual rates based on ratable values, fixed municipal levies, transfer costs, and rental income taxes, creating a comprehensive fee structure that varies by property type, location, and use. Understanding these costs upfront helps you budget accurately and avoid unexpected expenses that could impact your investment returns.
If you want to go deeper, you can check our pack of documents related to the real estate market in Ghana, based on reliable facts and data, not opinions or rumors.
Accra property owners pay annual rates of 0.066% to 0.75% of ratable value depending on property class, plus fixed municipal levies of GH¢185-GH¢500 per year.
Transfer costs include 1-3% stamp duty, 15% capital gains tax, and various registration fees totaling GH¢15,000-GH¢30,000 for typical transactions.
| Tax/Fee Type | Rate/Amount | When Applied |
|---|---|---|
| Residential Property Rate (1st Class) | 0.165% of ratable value | Annual |
| Residential Property Rate (2nd Class) | 0.1155% of ratable value | Annual |
| Commercial Property Rate (Prime) | 0.75% of ratable value | Annual |
| Municipal Levies | GH¢185-GH¢500 | Annual |
| Stamp Duty | 1-3% of property value | On transfer |
| Rental Income Tax | 15% of gross rent | Annual |
| Building Permit | GH¢8-15 per m² | One-off |
What are the exact annual property rates for residential and commercial properties in each Accra district?
Accra property rates are calculated as a percentage of your property's ratable value, with different rates applying to residential and commercial properties based on their classification.
Residential properties in Accra are divided into three classes: First Class properties pay 0.165% of ratable value annually, Second Class properties pay 0.1155%, and Third Class properties pay 0.066%. These classifications are determined by the property's location, build quality, and amenities.
Commercial properties face higher rates, with Prime Commercial properties paying 0.75% of ratable value and Other Commercial properties paying 0.51% annually. Mixed-use properties pay 0.396%, while industrial properties are charged 0.594% of their ratable value.
Each district also sets minimum annual amounts per room to ensure even low-value properties contribute: First Class residential pays a minimum of GH¢96.60 per room, Second Class pays GH¢82.80 per room, and Third Class pays GH¢69.60 per room annually.
These rates are set by individual district assemblies within Accra and can vary slightly between areas like Accra Metropolitan, Ga East, Ga West, and other municipal areas.
How is the ratable value determined and how often is it updated?
The Land Valuation Division of the Lands Commission conducts all property valuations to establish ratable values across Accra.
Valuators conduct physical site inspections, comparing your property to similar properties in the area while considering factors like size, build quality, location, and current use. They assign properties to valuation classes (First, Second, or Third Class) and apply zonal codes that reflect the desirability and development level of your specific area.
Revaluations typically occur every 5 years, though they can happen sooner if there are substantial area-wide improvements or significant property modifications. The Land Valuation Division publishes updated valuation rolls with new ratable values, which property owners can appeal if they believe the assessment is incorrect.
The valuation bands consider multiple factors including plot size, floor area, construction materials, age of the building, and access to utilities and infrastructure. Properties in prime locations like East Legon, Airport Residential, or Labone typically receive higher valuations than those in developing areas.
Property owners receive official notification of their new ratable value and have 30 days to file an appeal with supporting documentation if they disagree with the assessment.
What fixed municipal levies are added to property rates?
Beyond the basic property rate, all property owners in Accra pay mandatory municipal levies that fund essential local services.
| Municipal Levy | Residential Amount (Annual) | Commercial Amount (Annual) |
|---|---|---|
| Sanitation/Waste Collection | GH¢120-350 | GH¢300-1,200 |
| Fire Service Levy | GH¢25-50 | GH¢25-50 |
| Street Lighting | GH¢40-100 | GH¢40-100 |
| Security Levy | GH¢30-80 | GH¢50-150 |
| Building Levy | GH¢20-50 | GH¢40-100 |
| Environmental Levy | GH¢15-40 | GH¢25-75 |
The exact amounts within these ranges depend on your property size, location within the district, and specific local assembly policies. Commercial properties typically pay higher amounts due to their greater use of municipal services and infrastructure.
Each district assembly publishes an annual fee-fixing resolution that sets the specific amounts for all municipal levies, which must be approved by the Regional Coordinating Council before implementation.
Are there area-based or size multipliers that affect my property bill?
Accra uses zonal codes and property size bands that can significantly increase or decrease your final property tax bill beyond the base rates.
Zonal codes reflect the premium or discount applied to properties in specific areas: Prime zones like East Legon, Airport Residential, and Cantonments typically carry 10-30% multipliers above the base rate, while emerging or less developed areas may receive 10-20% reductions. The Land Valuation Division assigns these codes based on infrastructure quality, accessibility, and neighborhood desirability.
Property size bands create additional tiers for larger properties: Properties exceeding 250 square meters often move into higher rate brackets, with additional jumps at 500 square meters and 1,000 square meters. These thresholds can increase your effective rate by 15-25% for each band you enter.
Plot size also influences your bill, with properties on larger plots paying additional charges for increased municipal service requirements. Properties with commercial frontage or mixed-use potential may be assessed at higher rates regardless of current use.
It's something we develop in our Ghana property pack.
What are the payment deadlines and available payment channels?
All Accra property taxes and municipal levies are due by March 31st each year, with early payment incentives available for prompt payers.
Property owners can pay through multiple channels: District assembly cash offices accept direct payments, while selected commercial banks process property tax payments during business hours. Mobile money services including MTN Mobile Money, Vodafone Cash, and AirtelTigo Money offer convenient digital payment options, and the Ghana.gov online portal provides 24/7 payment access.
Early payment discounts of 10-15% apply to payments made by February 28th, providing significant savings for prompt payers. For example, a GH¢1,500 annual bill paid early would cost only GH¢1,275-1,350.
Payment convenience fees vary by channel: Mobile money and online payments typically charge GH¢5-25 per transaction, while bank payments may include processing fees of GH¢10-20. Cash payments at district offices are usually free but require physical presence during office hours.
Property owners receive annual bills by January 31st and can request payment reminders through SMS or email services offered by most district assemblies.
Don't lose money on your property in Accra
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
What penalties apply for late property tax payments?
Accra district assemblies impose escalating penalties for late property tax payments, starting immediately after the March 31st deadline.
A 10% surcharge applies to all unpaid amounts after March 31st, followed by an additional 2% cumulative penalty for each full month the payment remains outstanding. For example, a GH¢1,000 bill paid in June would incur GH¢100 (10%) plus GH¢60 (3 months × 2%) in penalties, totaling GH¢1,160.
After three months of non-payment, many assemblies add a flat penalty of GH¢100-250 regardless of the original bill amount. This flat fee covers administrative costs associated with debt collection efforts and formal notices.
The enforcement process follows a structured timeline: Demand notices are issued after 60 days, followed by public notice publication after 90 days. Court summons are issued after six months, with warrant of distress (asset seizure) authorized after 12 months of non-payment.
Property owners facing financial difficulties can request payment plans from their district assembly, which may waive some penalties in exchange for a structured repayment schedule with regular monthly installments.
What exemptions or reliefs can reduce my property tax bill?
Several exemptions and reliefs are available to reduce property tax burdens for qualifying property owners in Accra.
1. **Owner-occupied exemptions** provide up to 50% reduction for properties where the owner lives as their primary residence, requiring proof of residency and national ID verification.2. **Pensioner relief** offers up to 100% exemption for registered government pensioners, requiring valid pension cards and proof of primary residence status.3. **Disability exemptions** provide 70-100% relief for property owners with verified disabilities, requiring National Council on Persons with Disability registration certificates.4. **Charitable and religious use** exemptions offer 70-100% relief for properties used exclusively for worship, education, or registered charitable activities.5. **Under-construction relief** provides 100% exemption until building completion and occupancy certificate issuance, requiring ongoing construction permits and progress inspections.Required documentation varies by exemption type but typically includes property ownership documents, national identification, residency proof, and specific certificates relevant to the exemption category. Applications must be submitted annually with supporting documents renewed as required.
Some district assemblies offer additional reliefs for widows, single parents, or low-income households, with specific criteria and application processes varying by location.
What are the one-off permitting and compliance fees for new construction?
New construction and major renovations in Accra require multiple permits and inspections, each carrying specific fees based on property size and complexity.
Building permits cost GH¢8-15 per square meter with a minimum fee of GH¢2,500 for residential houses. The exact rate depends on construction type, with multi-story buildings and commercial properties paying higher per-square-meter fees. Luxury residential projects often pay the maximum rate of GH¢15 per square meter.
Inspection fees range from GH¢400-700 per stage, covering foundation, structural, electrical, plumbing, and final inspections. Most residential projects require 4-6 inspections throughout the construction process, totaling GH¢1,600-4,200 in inspection fees.
Occupancy certificates cost GH¢800-1,500 depending on property size and use, with commercial properties typically paying the higher end of this range. This certificate is mandatory before legal occupation and connects to utility services.
Fire safety and environmental permits add GH¢400-1,200 to total costs, with amounts varying by building size, occupancy type, and environmental impact assessment requirements. Properties over 250 square meters or three stories require enhanced fire safety compliance.
It's something we develop in our Ghana property pack.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Ghana versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What are the complete transfer costs when buying or selling property in Accra?
Property transfers in Accra involve multiple costs that both buyers and sellers should budget for in their transaction planning.
Stamp duty represents the largest transfer cost, charged on a sliding scale: Properties valued under GH¢200,000 pay 1%, those between GH¢200,000-500,000 pay 2%, and properties over GH¢500,000 pay 3% of the transaction value. This tax applies to the higher of the sale price or official valuation.
Capital gains tax of 15% applies to profit from property sales, calculated on the difference between purchase and sale prices after adjusting for inflation and allowable improvements. Primary residences occupied for at least three years may qualify for partial exemptions.
Lands Commission registration fees cost GH¢1,200-1,800 per transaction, covering title searches, document processing, and official registration of ownership transfer. These fees are standard regardless of property value.
Professional service costs include survey fees of GH¢800-2,000 for boundary verification and legal/conveyancing fees of GH¢1,000-5,000+ depending on transaction complexity and lawyer rates. Commercial properties typically incur higher professional fees.
Total transfer costs typically range from GH¢15,000-30,000 for residential properties, with luxury properties and commercial transactions often exceeding these amounts due to higher stamp duty and professional fees.
What ground rent and traditional land fees apply to leasehold properties?
Leasehold properties in Accra are subject to annual ground rent payments to traditional authorities (stools/skins) or the Lands Commission, depending on the original land grant.
Annual ground rent ranges from GH¢0.50-5.00 per square meter, with rates varying by location, land use type, and the specific traditional authority or government entity holding the head lease. Prime locations like Airport Residential and East Legon typically charge GH¢3-5 per square meter annually.
Traditional authorities (stool/skin lands) collect ground rent directly from leaseholders, while government lands channel payments through the Lands Commission. Payment procedures and acceptance of late payments vary significantly between traditional and government landlords.
Ground rent rates are reviewed every 5-10 years, often resulting in significant increases that reflect current land values and development in the area. Property owners should budget for potential rate increases during lease renewal negotiations.
Failure to pay ground rent can result in lease forfeiture proceedings, making timely payment crucial for maintaining property rights. Some leases include escalation clauses that automatically increase ground rent based on inflation or land value appreciation.
How are rental properties taxed and what are the filing requirements?
Rental income from Accra properties is subject to personal income tax at a flat rate of 15% for individual landlords, with specific filing and payment requirements.
Individual property owners pay 15% tax on gross rental income, calculated on total rent received without deductions for expenses like maintenance, management fees, or vacancy periods. This represents a simplified tax regime designed to encourage compliance among small landlords.
Corporate landlords face the standard corporate income tax rate of 25% on rental profits, with allowable deductions for maintenance, depreciation, management costs, and other legitimate business expenses. Corporate entities must file quarterly returns and annual corporate tax returns.
Withholding tax of 8% applies to commercial rent payments, where tenants or their agents must deduct and remit this amount monthly or quarterly depending on the rental agreement terms. This withholding tax serves as a credit against the landlord's annual tax obligation.
Filing deadlines require individual landlords to file annual returns by April 30th following the tax year, while withholding tax must be remitted by the 15th day following each month or quarter. Corporate landlords must file quarterly returns within 30 days of each quarter end.
It's something we develop in our Ghana property pack.
Can you provide a complete worked example with all taxes and fees?
Here's a comprehensive breakdown of all taxes and fees for a typical two-bedroom apartment in Accra valued at GH¢600,000 and rented at GH¢3,000 per month.
| Fee/Tax Category | Calculation Method | Annual Amount (GH¢) |
|---|---|---|
| Property Rate (1st Class Residential) | 0.00165 × 600,000 | 990 |
| Sanitation/Waste Levy | Fixed annual charge | 250 |
| Fire Service Levy | Fixed annual charge | 40 |
| Street Lighting Levy | Fixed annual charge | 75 |
| Security & Other Levies | Fixed annual charges | 85 |
| Early Payment Discount (10%) | 10% of total rates/levies | -144 |
| Net Annual Property Costs | Total after discount | 1,296 |
| Rental Income Tax | 0.15 × 36,000 annual rent | 5,400 |
| Ground Rent (if leasehold) | 200m² × GH¢2.50 | 500 |
| Total Annual Operating Costs | All recurring expenses | 7,196 |
Monthly property-related tax costs total GH¢600 (GH¢7,196 ÷ 12), representing 20% of gross rental income. One-time purchase costs would include GH¢12,000 stamp duty (2% of value), plus GH¢3,000-5,000 in registration and legal fees.
This example assumes First Class residential classification in a prime area with early payment of property taxes to capture the 10% discount, which saves GH¢144 annually and demonstrates the importance of prompt payment.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Accra's property tax structure is essential for making informed investment decisions and budgeting accurately for property ownership costs.
The combination of annual rates, municipal levies, transfer costs, and rental income taxes creates a comprehensive fee structure that significantly impacts your overall returns, making thorough research crucial before purchasing property in Ghana's capital.
Sources
- Ghana Property Taxes Overview - The African Investor
- Ga West Municipal Assembly Fee Fixing Resolution 2025
- Property Rate Impost Analysis - The BFT Online
- Old Tafo Municipal Assembly Budget 2025 - Ministry of Finance
- Rental Income Tax Guidelines - Ghana Revenue Authority
- Accra Rental Market Navigation - Ghana Property Finder
- Accra Property Market Analysis - VAAL Ghana
- Accra Property Price Forecasts - The African Investor