How income tax works in Malta
Malta taxes individuals who are both domiciled and ordinarily resident in Malta on worldwide income and capital gains. If you are resident but not domiciled, Malta generally taxes Malta-source income plus foreign income remitted to Malta, while foreign capital gains stay outside Malta even if remitted.
The 2026 personal tax bands for single taxpayers start at 0% up to EUR 12,000, then 15% up to EUR 16,000, 25% up to EUR 60,000 and 35% above that. Married and parent bands are wider, so family status can materially change the outcome.
Employment income is typically collected through the FSS payroll system, self-employment usually goes through provisional tax, and any balance due is settled by self-assessment. For calendar-year taxation, the tax return is filed the following year.
Social security is separate from income tax. Employees and employers generally each pay 10%, while self-employed and self-occupied individuals pay 15% on net income, subject to yearly caps and class rules. Malta also has special 15% regimes for certain qualifying expatriates and skilled roles.
Income tax brackets in Malta
| Bracket | Rate | Notes |
|---|---|---|
| 0 to 12,000 | 0% | Single 2026 rate; married and parent bands differ. |
| 12,001 to 16,000 | 15% | Single 2026 rate. |
| 16,001 to 60,000 | 25% | Single 2026 rate. |
| 60,001 and above | 35% | Single 2026 top rate. |
Tax rates at a glance
- Income tax
- 0%-35%Progressive
- Top marginal rate
- 35%
- Foreign income for non-doms
- 0% if not remitted
- Employee social security
- 10%
- Self-employed social security
- 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
ExpatsEmployeesContractorsRemote workersHigh earners
Watch out for
- Tax residence is factual, not just administrative. More than 183 days in Malta is a strong residence indicator, but domicile and ordinary residence still control the tax base.
- Non-doms should watch remittance mechanics carefully. Bringing foreign income into Malta can create tax, and foreign gains are treated differently from foreign income.
- Social security, fringe benefits, and special 15% schemes for qualified roles can change the effective burden even when the headline tax band looks simple.
Frequently asked questions
Do expats pay income tax in Malta?
It depends on residence and domicile. A resident non-dom is usually taxed only on Malta-source income and foreign income remitted to Malta, while a domiciled and ordinarily resident person is taxed on worldwide income.
What is the highest Malta income tax rate?
The top marginal personal income tax rate is 35% in 2026 for single taxpayers once chargeable income exceeds EUR 60,000. Married and parent bands have different thresholds.
Is there payroll tax in Malta?
There is no separate payroll tax, but employees and employers generally pay social security contributions, so payroll costs are higher than income tax alone suggests.