Malta Income Tax Rates 2026: Personal, Corporate, Property and Rental Taxes

Malta income tax: legal framework and 2026 overview

Malta taxes personal income under the Income Tax Act (Chapter 123 of the Laws of Malta), supported by the Income Tax Management Act (Chapter 372). Personal rates depend on residence and the relevant single, married or parent computation. The maximum ordinary marginal rate is 35%. The rates below are the published 2026 schedules, not the historical rates implied by this page's retained URL.

The Malta Tax and Customs Administration (MTCA) 2026 rate schedule is the primary reference. Eligibility for child-related bands is subject to specific conditions; consult the official 2026 explanatory guidance.

Individual income tax rates in Malta for 2026

The bands apply progressively to chargeable income. Tax due is not calculated by applying the top rate to the entire income. Income is generally assessed by reference to the calendar year in which it arises.

Single individuals

Married couples - standard computation

Parents - standard parent computation

Special married and parent rates with qualifying children, introduced for 2026, can provide higher zero-rate thresholds. They are not automatically available to everyone with children.

Married couples with one qualifying child

Married couples with two or more qualifying children

Parent computation with one qualifying child

Parent computation with two or more qualifying children

Child-related thresholds depend on the child's age, education, residence and the taxpayer's qualifying status. Refer to the MTCA conditions before using these bands.

Residence, domicile and non-resident income tax

Residence concerns a person's connection and presence in Malta; domicile is a distinct legal concept relating to a person's permanent home. Individuals resident and domiciled in Malta are generally taxed on worldwide income. A person resident but not domiciled may be taxed on Malta-source income and foreign income remitted to Malta, subject to exceptions and special rules. Non-residents are generally taxed on income and chargeable gains arising in Malta.

MTCA publishes a separate non-resident rate schedule. The historical general non-resident schedule below is retained as a reference and should not be substituted for any special regime or treaty relief.

Double-taxation agreements, particular employment arrangements and special residence regimes can change the final liability.

Capital gains and property transfer taxation

Article 5A of the Income Tax Act provides the principal final withholding tax framework for many transfers of Maltese immovable property. The usual rate is 8% of the transfer value, not 8% of the seller's profit. Depending on the facts, exceptions may include a 5% rate for certain transfers within five years of acquisition and other rules for inherited property, older acquisitions or qualifying exemptions. A blanket 12% rule from older articles is no longer a correct general statement.

See the MTCA property transfer tax FAQs for definitions, exceptions and examples. Gains from securities and other chargeable assets may be treated under other provisions of the Income Tax Act; property-transfer withholding should not be confused with every form of capital gains taxation.

Rental income taxation and deductions

Under Article 31D of the Income Tax Act, qualifying residential and commercial rental income may be subject, by election, to a 15% final tax on gross rent. The option can be available to residents, non-residents and companies, subject to exclusions such as certain related-party lettings. Because this tax is charged on gross receipts, deductions for expenses cannot be claimed against that 15% amount.

Alternatively, rental income may be declared under the ordinary income tax rules, where allowable costs may include qualifying ground rent, relevant licence fees, loan interest and applicable statutory allowances. Eligibility and calculation depend on the circumstances. The official MTCA rental income guidance explains the election and the TA24 return, ordinarily due by 30 April of the following year.

Corporate income tax and shareholder refunds

Malta's standard corporate income tax rate remains 35% of taxable profits under the Income Tax Act. Malta's full-imputation system generally gives shareholders credit for company tax on distributed profits; eligible shareholders may qualify for a partial or full tax refund depending on the nature of the income and applicable rules. A refund is not automatic and the 35% statutory company rate should not be confused with an effective shareholder-level outcome.

In addition, an elective 15% final income tax without imputation framework was introduced in 2025 for eligible entities, subject to the regime's conditions. Businesses should examine whether that election or the ordinary imputation system applies rather than assuming one universal effective rate.

Historical Malta income tax rates for 2017

The original page covered 2017-2018. The following historical individual rates are retained for context only and must not be used to calculate 2026 liabilities.

2017 single rates

2017 married rates

2017 parent rates

Historically, the company income tax headline rate was also 35%. Historic property-transfer exceptions and rental deductions depended on transaction-specific legislation; the current guidance above should be used for present-day transactions.

Official tax information and further reading

• MTCA: personal tax rates for 2026
• MTCA: resident and non-resident rate resources
• MTCA: property transfer tax guidance
• MTCA: rental income and Article 31D
• Income Tax Act, Chapter 123
• Income Tax Management Act, Chapter 372

Last reviewed: 23 October 2026. Tax rules and administrative guidance can change; confirm the current legal text and eligibility criteria for individual transactions.