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.

Parents who maintain a child use a separate parent rate table with a €13,000 tax-free band instead of €12,000. There is no separate €8,500 allowance on top of the tax-free band.

Married couples who opt for a joint computation use married rates with a €15,500 tax-free band. Helps single-earner families considerably.

Everyone else uses single rates: 0% up to €12,000, 15% to €16,000, 25% to €60,000 and 35% above. This is the table used in our calculator.

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.