Malta Budget 2026 – New Tax Brackets for Parent and Married Individuals

During the 2026 Budget Speech, the Government announced the introduction of new tax rates, in addition to the existing ones, applicable to married individuals with children and parents. These revised tax brackets distinguish between taxpayers with one (1) dependent child and those with two (2) or more dependent children.

The widening of these tax brackets is intended to provide targeted tax relief and to support families, with the broader objective of addressing Malta’s declining birth rate. The Government has indicated that these measures are expected to remain in force over the next three (3) years.

The following rates have been introduced;

• Married Rates with one (1) child

Eligibility Criteria:

1. Married Couples who are resident in Malta; and
2. Who maintain under their custody, one (1) child who is not over the age of eighteen (18) or not over the age of twenty-three (23) if in full-time education; and
3. The child is born in Malta and is resident in Malta; and
4. At least one of the spouses is a National of Malta or another EU/EEA Member State; or
5. At least one of the spouses is a Long-Term Resident of Malta as defined in the Status of Long-Term Residents Regulations.

Income of spouses will be aggregated and taxed at the applicable progressive rates.

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• Married Rates with two (2) or more children

Eligibility Criteria:

1. Married Couples who are resident in Malta; and
2. Who maintain under their custody, two (2) or more children who are all under the age of eighteen (18) or not over the age of twenty-three (23) if in full-time education; and
3. The children are born in Malta and are resident in Malta; and
4. At least one of the spouses is a National of Malta or another EU/EEA Member State; or
5. At least one of the spouses is a Long-Term Resident of Malta as defined in the Status of Long-Term Residents Regulations.

Income of spouses will be aggregated and taxed at the applicable progressive rates.

If any of the above-mentioned criteria applicable under the newly introduced tax rates are not met, the married couple may continue to qualify for the original Married Tax Rates as set out below.

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• Parent Rates with one (1) child

Eligibility Criteria:

1. Individuals who are parents and are resident in Malta; and
2. Who maintains under his/her custody or pays maintenance in respect of, one (1) child who is not over the age of eighteen (18) or not over the age of twenty-three (23) if in full-time education; and
3. The child is born in Malta and is resident in Malta; and
4. The parent is a National of Malta or another EU/EEA Member State; or
5. The parent is a Long-Term Resident of Malta as defined in the Status of Long-Term Residents Regulations.

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• Parent Rates with two (2) or more children

Eligibility Criteria:

1. Individuals who are parents and are resident in Malta; and
2. Who maintains under his/her custody or pays maintenance in respect of, two (2) or more children who are all under the age of eighteen (18) or not over the age of twenty-three (23) if in full-time education; and
3. The children are born in Malta and are resident in Malta; and
4. The parent is a National of Malta or another EU/EEA Member State; or
5. The parent is a Long-Term Resident of Malta as defined in the Status of Long-Term Residents Regulations.

Additionally, where the individual is not the child/children’s parent, the new parent tax rates may only be applicable to him/her if the individual he/she is married to / in a civil union with / has a registered cohabitation agreement with is the child’s parent. This is subject to satisfying the other criteria specified in points 1-5 above.

If any of the above-mentioned criteria applicable under the newly introduced Parent Tax Rates are not met, the parent may continue to qualify for the original Parent Tax Rates as outlined below.

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• Married Rates applicable to Single Individuals

Individuals who are unmarried, widowed, divorced or separated, and who maintain under their sole custody, a child who is not over the age of eighteen (18) or not over the age of twenty-three (23) if in full-time education, or who is unable to support themselves due to a disability and has an income below €3,400, may continue to use the current Married Rates if the said rates are more beneficial. This is subject to the applicable conditions.

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Applicants who are eligible to benefit from the new tax rates are required to register to notify the Tax Authorities.

We encourage you to contact us on infoact.com.mt to determine your eligibility for the new tax rates.