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Summary
Malta uses a PAYE-style system (Final Settlement System) where employers withhold income tax and national insurance (NI) contributions from each payslip. Income tax is progressive with four brackets (0%, 15%, 25%, 35%) and the thresholds vary depending on the taxpayer’s filing status: single, married, or parent. Employees and employers each pay Class 1 NI contributions at 10% of gross salary, subject to an annual cap.
How it works
Your take-home pay is your gross salary minus two main categories of deduction:
- National insurance (Class 1 NI) — 10% of gross salary, subject to an annual maximum
- Income tax — progressive rates applied to gross income (Malta does not deduct NI contributions from the tax base)
Malta has four filing statuses with different bracket thresholds: single rates, married rates, and parent rates. The worked example below uses the single filer schedule.
Income Tax Bands — Single Filer (2025)
| Taxable income | Marginal rate |
|---|---|
| Up to EUR 9,100 | 0% |
| EUR 9,101 — EUR 14,500 | 15% |
| EUR 14,501 — EUR 19,500 | 25% |
| EUR 19,501 — EUR 60,000 | 25% |
| Above EUR 60,000 | 35% |
Note: Malta does not have a separate personal allowance — the 0% bracket effectively acts as the tax-free threshold.
Married rates (both spouses earning)
| Taxable income | Marginal rate |
|---|---|
| Up to EUR 12,700 | 0% |
| EUR 12,701 — EUR 21,200 | 15% |
| EUR 21,201 — EUR 28,700 | 25% |
| EUR 28,701 — EUR 60,000 | 25% |
| Above EUR 60,000 | 35% |
Parent rates
| Taxable income | Marginal rate |
|---|---|
| Up to EUR 10,500 | 0% |
| EUR 10,501 — EUR 15,800 | 15% |
| EUR 15,801 — EUR 21,200 | 25% |
| EUR 21,201 — EUR 60,000 | 25% |
| Above EUR 60,000 | 35% |
Social Security Contributions
Employee contributions (deducted from gross salary)
| Component | Rate | Annual cap |
|---|---|---|
| Class 1 National Insurance | 10.0% | EUR 29,084 |
The 10% rate applies to weekly earnings up to the maximum insurable wage. For 2025, the maximum annual insurable earnings are approximately EUR 29,084, giving a maximum annual NI contribution of EUR 2,908.40.
Employer contributions (not deducted from salary)
| Component | Rate |
|---|---|
| Class 1 National Insurance (employer share) | 10.0% |
The employer pays a matching 10% contribution on the same base.
Worked Example
For a gross annual salary of EUR 30,000 (single filer):
- National Insurance (10% of gross, capped):
- EUR 29,084 x 10% = EUR 2,908.40 (salary exceeds the cap, so NI applies only up to EUR 29,084)
- Total NI: EUR 2,908.40
- Income tax (applied to full gross salary):
- First EUR 9,100 at 0% = EUR 0
- EUR 9,101 — EUR 14,500 at 15% = EUR 810.00
- EUR 14,501 — EUR 19,500 at 25% = EUR 1,250.00
- EUR 19,501 — EUR 30,000 at 25% = EUR 2,625.00
- Total income tax: EUR 4,685.00
- Total deductions: EUR 2,908.40 (NI) + EUR 4,685.00 (tax) = EUR 7,593.40
- Take-home pay: EUR 30,000 - EUR 7,593.40 = EUR 22,406.60/year (EUR 1,867/month)
Assumptions and Limitations
- 2025 rates only — uses thresholds and rates effective for the 2025 basis year
- Single filer rates — married and parent filers have different (more generous) bracket thresholds
- Employment income only — does not model self-employment, investment income, rental income, or part-time rules
- No tax credits — does not account for tax credits such as the in-work benefit or other deductions
- Standard NI — uses Class 1 employee rate; self-employed persons pay Class 2 contributions at different rates
- No maternity fund — the employer pays an additional 0.3% maternity fund contribution, not deducted from the employee