Personal Income Tax 2026 – Malta

First €12,000 yearly income is completely tax-free for everyone. That's €1,000 per month. Good for part-time workers, pensioners, and low earners.

15% tax on income between €12,000-€16,000 (only €4,000 band). Then 25% on €16,000-€60,000. Most middle-income earners fall in the 25% bracket.

Income exceeding €60,000 taxed at 35%. Applies to high earners. However, effective rate is lower due to progressive system - first €60,000 taxed at lower rates.

Every taxpayer gets €8,500 parent allowance, reducing taxable income. This is on top of the tax-free €12,000. Effectively increases tax-free threshold significantly.

€1,000 deduction for each dependent child. If you have 3 kids, that's €3,000 off your taxable income. Helps families considerably.

Single parents raising children alone get additional €700. Combined with child allowances, single parents receive substantial tax relief.

Employers deduct correct tax from your salary each month using Final Settlement System (FSS). If you have only one job and no other income, tax is final - no return needed.

Must file tax return if: two or more jobs, self-employment income, rental income, foreign income, capital gains, or claiming special deductions. FSS doesn't handle these situations.

If you paid too much tax during the year (job changes, deductions not claimed), file return to get refund. Commissioner for Revenue processes refunds relatively quickly.