SHELTONS INTERNATIONAL GROUP
Malta introduced new tax brackets with effect from 01 January 2026, now distinguishing between parents with one child and those with two or more. The widened bands maintain the top rate of 35% and aim to provide targeted relief for married couples and parents, supporting families while easing their tax burden.
The new rates are being provided and explained hereunder:
1. Changes to the Married Progressive Tax Rates
New Married Progressive Rates with One Child
The new married rates apply to married couples’ resident in Malta who maintain under their custody one child who is not over 18 years of age (or not over 23 if in full-time education):
From EUR 0 to EUR 17,500 – Tax rate: 0%
From EUR 17,501 to EUR 26,500 – Tax rate: 15%
From EUR 26,501 to EUR 60,000 – Tax rate: 25%
From EUR 60,001 onwards – Tax rate: 35%
New Married Progressive Rates with Two or More Children
The new married rates apply to married couples’ resident in Malta who maintain under their custody two or more children who are not over 18 years of age (or not over 23 if in full-time education):
From EUR 0 to EUR 22,500 – Tax rate: 0%
From EUR 22,501 to EUR 32,000 – Tax rate: 15%
From EUR 32,001 to EUR 60,000 – Tax rate: 25%
From EUR 60,001 onwards – Tax rate: 35%
The above new married progressive rates shall only apply where, besides fulfilling the condition that the married couple is resident in Malta:
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 and the child is born in Malta and is resident in Malta.
If the above new married progressive rates do not apply, the current married tax rates will continue to apply to married couples’ resident in Malta.
2. Changes to the Parent Progressive Tax Rates
New Parent Progressive Rates with One Child
The following new parent rates shall apply to a parent who maintains under his/her custody (or pays maintenance in respect of) one child who is not over 18 years of age (or not over 23 if in full-time education).
From EUR 0 to EUR 14,500 – Tax rate: 0%
From EUR 14,501 to EUR 21,000 – Tax rate: 15%
From EUR 21,001 to EUR 60,000 – Tax rate: 25%
From EUR 60,001 onwards – Tax rate: 35%
New Parent Progressive Rates with Two or More Children
The following new parent rates shall apply to a parent who maintains two or more children under his/her custody (or pays maintenance in respect of) who are not over 18 years of age (or not over 23 if in full-time education).
From EUR 0 to EUR 18,500 – Tax rate: 0%
From EUR 18,501 to EUR 25,500 – Tax rate: 15%
From EUR 25,501 to EUR 60,000 – Tax rate: 25%
From EUR 60,001 onwards – Tax rate: 35%
The above new parent progressive rates shall only apply where, besides fulfilling the condition that the individual is resident in Malta:
the individual is a national of Malta or another EU/EEA member state;
the individual is a long-term resident of Malta as defined and the child is born in Malta and is resident in Malta.
The current parent rates shall continue to apply to resident individuals who do not qualify for the new parent rates described above and who maintain under his/her custody (or pays maintenance in respect of) children who are not over 18 years of age (or not over 23 if in full-time education).
In addition, the current single rates shall continue to apply to resident individuals who do not qualify for any other rates.
Applicants who are eligible to benefit from the new tax rates are required to complete the new FS4 and notify the Malta tax authorities accordingly. For personalised guidance, reach out to our tax team at Sheltons Malta or write to us on [email protected]
