Malta Personal Income Tax 2026: Updated Tax Structure

Malta's personal income tax system is grounded in progressive rates that apply to an individual's chargeable income, that is, total income after deductions, exemptions, and allowances. For the 2026 basis year (income earned in 2026, assessed in 2027), the Government kept the familiar 0 %–35 % progressive bands but introduced significant new tax bracket adjustments for taxpayers with children as part of the 2026 Budget's flagship tax cut measures. These changes reflect a broader policy goal of reducing tax burdens on family units.

How Malta Taxes Individuals

The basis of taxation in Malta depends on residence and domicile status:

• Resident & domiciled individuals are taxed on their worldwide income.
• Resident but nondomiciled individuals pay tax on Maltese-sourced income and foreign income brought into Malta.
• Non-residents are taxed only on income arising in Malta.

Tax is calculated on the calendar year (January–December), and the tax return and assessment occur the following year.

Standard Progressive Tax Rates 2026

For taxpayers who do not qualify for the new family-oriented bands (for example, single people without children or married couples without dependent children), the general personal income tax rates for 2026 remain as published by the Malta Tax and Customs Authority (MTCA):

Single Individuals

Married Individuals (Standard)

Parent (Standard

These standard rates still apply, but new rates and thresholds have been introduced for families with children.

2026 Family-Oriented Tax Bands

One of the most noteworthy aspects of the 2026 personal tax regime is the introduction and expansion of tax bands for taxpayers with children, designed to reduce the burden and leave more income with families. The new thresholds apply to:

• Married couples with one child
• Married couples with two or more children
• Parents with one child
• Parents with two or more children

These measures will be phased and expanded further in 2027 and 2028, but take effect from 2026 onward.

Married with One Child 2026

Married with Two or More Children 2026

Parent with One Child 2026

Parent with Two or More Children 2026

All of these brackets are official MTCA rates for 2026 and reflect the structural broadening of tax-free bands for families.

By drastically widening the tax-free bands and reducing effective tax burdens, Malta aims to provide tangible financial incentives for families with children.

Special Tax Statuses in Malta

Malta Global Residence Programme (GRP)

Tax Treatment:

• Flat rate: 15% on foreign-source income remitted to Malta.
• Foreign income not remitted: not taxed in Malta.
• Local (Maltese-source) income: taxed at 35% under standard rules.
• Minimum annual tax liability: €15,000, covering the beneficiary and dependants.

The Malta Residence Programme (TRP)

Tax Treatment:

• Flat rate: 15% on foreign-source income remitted to Malta.
• Foreign income not remitted: not taxed in Malta.
• Local income: taxed at 35%.
• Minimum annual tax liability: €15,000.

(TRP mirrors GRP tax treatment but is designed for EU/EEA/Swiss nationals.)

Malta Retirement Programme (MRP)

Tax Treatment:

• Flat rate: 15% on qualifying foreign pension income remitted to Malta.
• Foreign income not remitted: not taxed in Malta.
• Maltese-source income: taxed at 35% under standard rules.
• Minimum annual tax: €7,500 for the main applicant plus €500 per dependant.

United Nations Pensions Programme (UNPP)

Tax Treatment:

• UN pension and UN widow's benefit received in Malta: exempt from Maltese income tax.
• Other foreign-source income remitted to Malta: taxed at a 15% flat rate.
• Foreign income not remitted to Malta: not taxed in Malta.
• Local (Maltese-source) income: taxed at standard Maltese progressive rates (up to 35%).

Minimum annual tax liability:

• €10,000, where only one beneficiary qualifies under the programme.
• €15,000 total where both spouses are beneficiaries (i.e. both receive qualifying UN pensions).

Highly Qualified Persons Rules (HQPR)

Tax Treatment:

• Flat rate: 15% on income derived from a qualifying contract of employment in an "eligible office".
• Applicable to certain senior, executive, professional, or specialised roles in sectors such as financial services, gaming, aviation, and similar industries.
• A tax cap applies to qualifying income up to €5,000,000; income above this amount is generally exempt from Maltese tax.
• No explicit minimum tax requirement under the regime; tax is payable based on qualifying income earned.

Qualifying Employment in Innovation & Creativity (QEIC)

Tax Treatment:

• Flat rate: 15% on employment income derived from a qualifying contract of employment.
• Eligibility income threshold: typically around €52,000 per year, subject to role and authority approval.
• Duration: the 15% rate normally applies for up to 4 consecutive years.
• Other income is subject to standard Maltese tax rules where applicable.

Nomad Residence Permit (NRP)

(also referred to as the Malta Digital Nomad Visa – Legal Notice 277 of 2023)

Tax Treatment:

• Authorised remote work income:
• Exempt from Maltese income tax for the first 12 months, provided the individual does not become tax resident in Malta during that period.
• After the first 12 months, such authorised work income is taxed at a 10% flat rate.
• Other income: subject to Malta's normal tax rules only if the individual becomes a Maltese tax resident.

Final Thoughts

Malta's personal income tax framework for 2026 maintains its progressive structure while undergoing significant evolution.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.