Methodology - Malta (2026)

Educational model - not an MTCA FSS assessment, not a tax return, not tax advice.

Employee

Resident individuals are taxed under one of three statutory computations - Single, Married, or Parent - each with progressive bands of 0% / 15% / 25% / 35% (Income Tax Act, Cap. 123, art. 56).
Single: 0% to 12,000; 15% to 16,000; 25% to 60,000; 35% above. Married: 0% to 15,000; 15% to 23,000; 25% to 60,000; 35% above. Parent: 0% to 13,000; 15% to 17,500; 25% to 60,000; 35% above (annual chargeable income in EUR).
Class 1 Social Security Contributions: employee 10% and employer 10% of the basic weekly wage, with a maximum of EUR 55.93 per week per side (born on or after 1 January 1962).
Out of scope: the enhanced child-uplift brackets added by Budget 2026, the special low-earner SSC sub-category, reduced rates for persons born before 1962, the 0.3% maternity-fund employer levy, and tax credits beyond the band structure.

Net business profit = revenue - expenses, taxed under the same Single / Married / Parent computation sets (0% / 15% / 25% / 35%) as an employee.
Class 2 Social Security Contributions: 15% of net annual income, with a maximum of EUR 83.89 per week and a standard minimum of EUR 36.18 per week (born on or after 1 January 1962). Liability arises once income exceeds EUR 910 per year.
Out of scope: the previous-year basis on which Class 2 is statutorily computed (the model applies 15% to the entered current profit), the special low-income self-occupied sub-rate, capital allowances, losses, VAT, and the enhanced child-uplift brackets.