International taxation / Malta
Malta Income Tax Rates 2026: Personal, Property, Rental and Corporate Taxes
Malta taxes individuals under progressive income tax schedules, with separate computations for single persons, married couples and qualifying parents. The treatment of non-residents, rental income, property transfers and companies follows different rules. This guide explains the principal provisions and points to the Malta Tax and Customs Administration (MTCA).
Applicable Maltese tax legislation
The Income Tax Act (Chapter 123 of the Laws of Malta) governs the charge to income tax, including the progressive rates in Article 56, the optional 15% final tax on qualifying rental income in Article 31D, and the rules on certain transfers of property. The Income Tax Management Act (Chapter 372) addresses administration, returns and compliance. See the Income Tax Act, Income Tax Management Act and MTCA official portal.
Resident individual income tax rates for 2026
Rates are marginal: each band applies only to the portion of chargeable income within that band. The tax authority also publishes a rate-and-subtract method to calculate the total directly. The tables reflect the official 2026 individual rate schedules.
Single rates
| Chargeable income (EUR) | Marginal rate |
|---|---|
| 0 to 12,000 | 0% |
| 12,001 to 16,000 | 15% |
| 16,001 to 60,000 | 25% |
| Over 60,000 | 35% |
Married rates
| Chargeable income (EUR) | Marginal rate |
|---|---|
| 0 to 15,000 | 0% |
| 15,001 to 23,000 | 15% |
| 23,001 to 60,000 | 25% |
| Over 60,000 | 35% |
Married with one qualifying child rates
| Chargeable income (EUR) | Marginal rate |
|---|---|
| 0 to 17,500 | 0% |
| 17,501 to 26,500 | 15% |
| 26,501 to 60,000 | 25% |
| Over 60,000 | 35% |
Married with two or more qualifying children rates
| Chargeable income (EUR) | Marginal rate |
|---|---|
| 0 to 22,500 | 0% |
| 22,501 to 32,000 | 15% |
| 32,001 to 60,000 | 25% |
| Over 60,000 | 35% |
Parent rates
| Chargeable income (EUR) | Marginal rate |
|---|---|
| 0 to 13,000 | 0% |
| 13,001 to 17,500 | 15% |
| 17,501 to 60,000 | 25% |
| Over 60,000 | 35% |
Parent with one qualifying child rates
| Chargeable income (EUR) | Marginal rate |
|---|---|
| 0 to 14,500 | 0% |
| 14,501 to 21,000 | 15% |
| 21,001 to 60,000 | 25% |
| Over 60,000 | 35% |
Parent with two or more qualifying children rates
| Chargeable income (EUR) | Marginal rate |
|---|---|
| 0 to 18,500 | 0% |
| 18,501 to 25,500 | 15% |
| 25,501 to 60,000 | 25% |
| Over 60,000 | 35% |
Child-related bands introduced for 2026 require satisfaction of the statutory conditions, including qualifying child age, custody or maintenance, residence and applicable nationality or long-term residence requirements. The standard married and parent schedules remain available to eligible persons. Refer to the MTCA 2026 explanatory guidance before claiming child-related bands.
Non-residents and residence or domicile
Residence and domicile are distinct legal concepts. Individuals ordinarily resident and domiciled in Malta are generally taxed on worldwide income and taxable gains. Persons resident but not domiciled in Malta may fall under the remittance basis, subject to statutory exceptions: Maltese-source income and certain foreign income remitted to Malta are taxable, while qualifying foreign capital gains may be treated differently. Non-residents are generally taxed on Maltese-source income and taxable gains.
Non-resident individuals generally use a separate progressive schedule, not the resident single, married or parent tables. The historic schedule shown on this page was 0% up to EUR 700, 20% from EUR 701 to 3,100, 30% from EUR 3,101 to 7,800 and 35% above EUR 7,800; confirm the applicable year and any special status against MTCA non-resident tax-rate guidance. Double taxation treaties may modify certain outcomes.
Capital gains and tax on Maltese property transfers
Capital gains may arise on transfers of immovable property, securities, business goodwill and other specified assets under the Income Tax Act. A transfer of immovable property situated in Malta is generally subject to a final withholding tax of 8% of the transfer value, rather than an ordinary capital-gains computation. The tax is generally based on transfer value, not merely the seller's net profit. Special cases may attract different rates, exemptions or elections.
Examples of special property transfer rates include 5% for certain disposals within five years, 7% for specified inherited property and other rates depending on acquisition date, type of property and transaction. The former general 12% rate in the original article is not the general current rule. Consult the MTCA property transfer tax FAQs and relevant statutory provisions before a sale.
Rental income and the 15% final tax option
Article 31D of the Income Tax Act permits an optional 15% final tax on qualifying gross rental income from residential or commercial property, subject to conditions and exclusions, including related-party arrangements. This regime can apply to residents and non-residents, and may also apply to companies. It is distinct from a net-rental-profit computation under ordinary income tax rules. See MTCA guidance on rental income.
Where rental income is assessed under the ordinary rules instead, eligible expenses may include qualifying ground rent, licence fees, interest and statutory allowances, subject to the specific requirements. Do not apply both the final gross-rent regime and ordinary deductions to the same income.
Corporate income tax in Malta
The standard Maltese corporate income tax rate is 35% on taxable company profits. Malta operates a full-imputation system, and qualifying shareholders may be eligible for refunds of part of the corporate tax after dividend distributions, depending on the nature and source of profits and other conditions. A refund is not automatic, and a company's 35% statutory rate should not be confused with an effective shareholder-level outcome.
Different rules may apply to participation exemptions, international structures, tax credits and qualifying distributions. Company tax calculations require consideration of the Income Tax Act, applicable anti-avoidance provisions and the company's specific facts.
Historical 2018-2019 tax rates and context
The original article covered Malta's 2018 personal tax bands, with a top marginal rate of 35%, and the 35% standard company rate. Its historical tables began at EUR 9,100 (single), EUR 12,700 (married) and EUR 10,500 (parent) as zero-rate thresholds. These figures are retained here as historical context only, not as the rates to apply for 2026.
It also referred to a 12% property transfer tax and a 15% rental tax. The general property transfer regime had already shifted to an 8% standard final withholding tax from 2015, subject to exceptions; the 15% rental tax remains available under Article 31D where its conditions are met.