New tax rates 2026

This reform marks one of the most significant updates to Malta’s personal tax framework in recent years. The updated system now includes seven distinct tax rate structures, categorised according to marital status and the number of dependent children.

New tax brackets have been introduced for:

✅ Married couples with one child
✅ Married couples with two or more children
✅ Parents with one child
✅ Parents with two or more children

The long‑standing single, parent, and married tax categories will continue to apply.

To support taxpayers in navigating these changes, the MTCA has issued comprehensive guidance notes, providing details on the updated rates and outlining the eligibility requirements for each tax rate structure.

Furthermore, the MTCA has released an updated FS4 Payee Status Declaration form, which now includes options for selecting the newly introduced tax categories. Employers are advised to ensure that a fresh FS4 is completed and submitted for any employee eligible for these new rates, so that the correct tax category is applied throughout the year.