How is Malta income tax calculated in 2026?
Malta charges personal income tax using the official subtraction method: for the band your chargeable income falls into, tax = annual income × rate − a fixed subtraction amount, floored at zero. Every computation keeps the same 0% / 15% / 25% / 35% progression, with the 35% top rate starting above €60,000, but the bands differ by household status. For 2026 the tax-free (0%) threshold is €12,000 for Single, €15,000 for Married (joint) and €13,000 for Parent. Budget 2026 added four new family tables — Married with 1 child, Married with 2 or more children, Parent with 1 child, and Parent with 2 or more children — which widen the tax-free band substantially (up to €22,500 for a married couple with two children). Because a taxpayer is taxed under the most favourable computation they qualify for, this calculator always compares all seven tables and highlights the lowest liability. Worked example: take a Single person on €30,000 of chargeable income. That falls in the Single 25% band (€16,001–€60,000, subtraction €3,400), so tax = 30,000 × 0.25 − 3,400 = €4,100.00, an effective rate of 13.67%, leaving a net income of €25,900.00 with a 25% marginal rate. For the same €30,000, the Married computation gives €2,950.00, Parent gives €3,800.00, Married with 1 child gives €2,225.00, Married with 2 or more children gives €1,125.00, Parent with 1 child gives €3,225.00 and Parent with 2 or more children gives €2,175.00 — so a married parent of two could pay €1,125.00 instead of €4,100.00, which is exactly why surfacing every table matters. This is income tax only: it does not deduct Class 1 or Class 2 social security, pension rebates or the 2026 pension-income exemption. Always confirm your status and figures with the Malta Tax and Customs Administration (CFR).
Official source: CFR Malta (MTCA) · Data updated: 2026-06-02