Explaining Malta’s New Personal Tax Rates for 2026
Further to the announcement in the 2026 Budget Speech, new tax rates will come into effect on 1st January 2026 for families with one child and for families with two or more children. The purpose of this communication is to outline the current tax brackets, the new tax brackets, and the applicable conditions.
The Malta Tax and Customs Administration (MTCA) has now officially published the rates, along with an updated version of the FS4 Payee Status Declaration Form (the ‘FS4 Form’) which has been amended to cater for the new income tax rates introduced.
New tax brackets have been introduced for:
- Married taxpayers with one child
| 2026 | |||
| Married Rates – One Child | |||
| Income (€) | Rate | Subtract | |
| From | To | ||
| 0 | 17,500 | 0% | 0 |
| 17,501 | 26,500 | 15% | 2,625 |
| 26,501 | 60,000 | 25% | 5,275 |
| 60,001 | and over | 35% | 11,275 |
- Married taxpayers with two or more children
| 2026 | |||
| Married Rates – Two or more Children | |||
| Income (€) | Rate | Subtract | |
| From | To | ||
| 0 | 22,500 | 0% | 0 |
| 22,501 | 32,000 | 15% | 3,375 |
| 32,001 | 60,000 | 25% | 6,575 |
| 60,001 | and over | 35% | 12,575 |
- Parent taxpayers with one child
| 2026 | |||
| Parent Rates – One Child | |||
| Income (€) | Rate | Subtract | |
| From | To | ||
| 0 | 14,500 | 0% | 0 |
| 14,501 | 21,000 | 15% | 2,175 |
| 21,001 | 60,000 | 25% | 4,275 |
| 60,001 | and over | 35% | 10,270 |
- Parent taxpayers with two or more children
| 2026 | |||
| Parent Rates – Two or more Children | |||
| Income (€) | Rate | Subtract | |
| From | To | ||
| 0 | 18,500 | 0% | 0 |
| 18,501 | 25,500 | 15% | 2,775 |
| 25,501 | 60,000 | 25% | 5,325 |
| 60,001 | and over | 35% | 11,325 |
It should be noted that the new married and parent rates only apply if the individual meets certain conditions:
The new married rates shall apply only if the couple:
- Is married and resident in Malta, and
- Either:
- At least one spouse is a Maltese or EU/EEA national, or
- At least one spouse is a long‑term resident of Malta, and the child is both born in Malta and resident in Malta.
For EU/EEA married couples where one spouse is non‑resident, these rates may still apply if:
- At least 90% of their worldwide income is derived from Malta, and
- All other conditions are met.
The new parent rates shall apply only if the taxpayer
- Is resident in Malta, and
- Either:
- Is a Maltese or EU/EEA national, or
- Is a long‑term resident of Malta, and the child is both born in Malta and resident in Malta.
In addition, if the individual is not the child’s parent, the new parent rates apply only if the person is:
- Married (including civil union) to the child’s parent, or
- Has a public deed of cohabitation registered under the Cohabitation Act with the child’s parent.
The existing single, parent, and married taxpayer rates will remain in place and shall continue to apply to taxpayers who are not impacted by the changes.
Employers are urged to take the necessary steps to ensure that payroll records are duly updated to reflect the new rates.
How AE Can Help
The introduction of new personal tax rates for married and parent taxpayers brings updated eligibility and payroll requirements. AE Business Advisors can help you assess eligibility under the new rates, ensure correct FS4 declarations, and support employers in updating payroll systems accordingly.
If you would like to understand how these changes affect you or your employees, contact our team for clear, tailored guidance.
+356 2095 8100