Methodology - Malawi (2026)

Educational model - not an MRA assessment, not a tax return, not tax advice. Currency MWK (Kwacha).

Employee (PAYE + NPS)

PAYE resident monthly brackets (Taxation (Amendment) Act No. 36 of 2025, effective 1 January 2026): 0% up to MWK 170,000; 30% to 1,570,000; 35% to 10,000,000; 40% above 10,000,000. The 40% top band was reinstated and the 25% band removed; the tax-free threshold was raised to 170,000.
The PAYE base is gross taxable emoluments minus the employee NPS pension contribution (the standard Malawi treatment; the 5% is within the deductible cap).
NPS pension: employee 5% + employer 10% of pensionable emoluments.
Out of scope: the 15%-of-emoluments / ministerial pensionable-salary deduction cap, non-cash benefit valuation, and the small-business Presumptive Tax (turnover up to MWK 12,500,000/year).

Self-employed individuals are taxed on the same rate schedule on annual net business income (band boundaries = monthly x 12): 0% up to 2,040,000; 30% to 18,840,000; 35% to 120,000,000; 40% above. Paid via provisional tax (quarterly).
Out of scope: the small-business Presumptive Tax (banded fixed amounts for annual turnover up to MWK 12,500,000) and voluntary NPS for the self-employed.