How is income tax calculated in Malta?
Single rates for basis year 2026: 0% on the first EUR 12,000, 15% from EUR 12,001 to EUR 16,000, 25% from EUR 16,001 to EUR 60,000 and 35% above EUR 60,000.
The employee pays social security of 10% of salary; on annual salaries above EUR 29,084 it is a fixed EUR 55.93 a week, which is the same as charging 10% up to that salary.
What is the income tax rate in Malta?
| Taxable income | Rate |
|---|---|
| €0 – €12,000 | 0% |
| €12,000 – €16,000 | 15% |
| €16,000 – €60,000 | 25% |
| Over €60,000 | 35% |
What mandatory salary deductions apply?
- Social security (employee): 10% of pay, on up to 29,084 a year.
Gross salary and take-home salary
Gross salary is what your contract says before anything is taken off. Take-home salary is what reaches your bank account after income tax and the compulsory employee contributions. Employer contributions are paid on top of your salary and are not taken from it.
Example: €2,700.00 a month
An employee earning 2,700 a month, about US$3,000.
| Item | Monthly | Annual |
|---|---|---|
| Gross salary | €2,700.00 | €32,400.00 |
| Income tax | €391.67 | €4,700.00 |
| Compulsory contributions | €242.37 | €2,908.40 |
| Take-home pay | €2,065.97 | €24,791.60 |
Effective income tax rate 14.5%; all deductions 23.5%.
Frequently asked questions
When is the 35% rate reached?
On chargeable income above EUR 60,000 at the single rates.
Is social security capped in Malta?
Yes. Above an annual salary of EUR 29,084 the employee pays a fixed EUR 55.93 a week (for those born on or after 1 January 1962).
Are there different rates for married people and parents?
Yes. Married and parent rates have wider 0% and lower-rate bands; this calculator uses the single rates.
Official sources
- PwC Worldwide Tax Summaries (reviewed 30 September 2026): Taxes on personal income. Read 5 November 2026.
- PwC Worldwide Tax Summaries (reviewed 30 September 2026): Other taxes. Read 5 November 2026.
Last reviewed 5 November 2026. An estimate for planning, not tax advice; your employer’s payroll and the tax authority decide what is actually withheld.
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