As published by the Malta Tax & Customs Administration (MTCA).
1. When do the new tax rates apply?
The updated personal income tax rates introduced in Malta apply for the Year of Assessment 2027, meaning they affect income earned from 1st January 2026 onwards.
2. Do I need to file a new FS4 with MTCA?
Yes. Employees who wish to benefit from the updated tax rates or a different tax status must submit a new FS4. If no updated FS4 is submitted, payroll will continue to apply the existing tax status on record.
3. When will the new rates be reflected in my payslip?
The new tax rates will be applied through payroll once the updated FS4 is submitted and processed. Until then, tax may continue to be calculated using your existing tax status.
4. What are the main personal income tax categories?
Malta uses different tax rate tables based on your tax status:
- Single
- Married
- Married with children (one child; two or more children)
- Parent (single parent or both parents working)
- Parent with children (one child; two or more children)
5. What are the basic personal tax rates for 2026?
One can find the new tax rates for 2026 by clicking on this linkhttps://mtca.gov.mt/personal-tax/tax-rates/tax-ratesindividuals/2026]
6. What conditions apply to the new rates?
Certain eligibility conditions apply for the new married with children and parent with children, including:
- The taxpayer must be resident in Malta; and
- Having children under 18 (or up to 23 if in full-time education); and
- At least one spouse is a national of Malta or another EU/EEA member state; or at least one spouse is a long-term resident of Malta as defined in the Status of Long-Term Residents Regulations and the child is born in Malta and is resident in Malta.
In the case of an EU/EEA married couple, where one spouse is non-resident, the above rates may apply if at least 90% of their worldwide income is derived from Malta and all other conditions are satisfied.
Moreover, unless the individual is the child’s parent, the new parent rates shall only apply to him/her where the claimant is married (including in a civil union) to the parent of the child or has entered into a public deed of cohabitation registered in the Public Registry, with the child’s parent under the Cohabitation Act.
7. What is defined as a long-term resident of Malta?
A long-term resident of Malta is a third-country national who meets all of the following criteria:
- Has been legally and continuously residing in Malta for a period of five (5) years or more;
- Has stable and regular resources sufficient to maintain themselves;
- Has suitable accommodation in Malta; and
- Fulfils the required integration measures as outlined in Subsidiary Legislation 217.05.
Eligible individuals may apply for long-term residence status.
Once granted, this status is permanent, although the residence permit/card itself is issued for a period of five (5) years and is renewable.
Following approval, the individual’s status must be updated in the Identità system and reflected on their official residence permit/card.
8. Are social security contributions also changing?
The income tax and social security systems are separate. Social security contribution rates remain as set for 2026, and vary by income and category.
This FAQ is provided for general information purposes only and does not constitute personal tax advice. Individual tax outcomes may vary depending on personal circumstances. Employees are encouraged to consult a tax advisor for advice specific to their situation.