Issue link: https://maltatoday.uberflip.com/i/1540773
3 maltatoday | TUESDAY • 28 OCTOBER 2025 BUDGET 2026 Income bracket Rate Deduction €0 - €17,500 0% €0 €17,501 - €26,500 15% €2,625 €26,501 - €60,000 25% €5,275 €60,000+ 35% €11,275 Married Computation (one child) 2026 Income bracket Rate Deduction €0 - €20,000 0% €0 €20,001 - €30,000 15% €3,000 €30,001 - €60,000 25% €6,000 €60,000+ 35% €12,000 Married Computation (one child) 2027 Income bracket Rate Deduction €0 - €22,500 0% €0 €22,501 - €33,500 15% €3,375 €33,501 - €60,000 25% €6,725 €60,000+ 35% €12,725 Married Computation (one child) 2028 Income bracket Rate Deduction €0 - €22,500 0% €0 €22,501 - €32,000 15% €3,375 €32,001 - €60,000 25% €6,575 €60,000+ 35% €12,575 Married Computation (2+ children) 2026 Income bracket Rate Deduction €0 - €30,000 0% €0 €30,001 - €41,000 15% €4,500 €41,001 - €60,000 25% €8,600 €60,000+ 35% €14,600 Married Computation (2+ children) 2027 Income bracket Rate Deduction €0 - €37,000 0% €0 €37,001 - €50,000 15% €5,550 €50,001 - €60,000 25% €10,550 €60,000+ 35% €16,550 Married Computation (2+ children) 2028 Income bracket Rate Deduction €0 - €14,500 0% €0 €14,501 - €21,000 15% €2,175 €21,001 - €60,000 25% €4,275 €60,000+ 35% €10,270 Parent Computation (one child) 2026 Income bracket Rate Deduction €0 - €16,000 0% €0 €16,001 - €24,500 15% €2,400 €24,501 - €60,000 25% €4,850 €60,000+ 35% €10,850 Parent Computation (one child) 2027 Income bracket Rate Deduction €0 - €18,000 0% €0 €18,001 - €28,000 15% €2,700 €28,001 - €60,000 25% €5,500 €60,000+ 35% €11,500 Parent Computation (one child) 2028 Income bracket Rate Deduction €0 - €14,500 0% €0 €14,501 - €21,000 15% €2,175 €21,001 - €60,000 25% €4,275 €60,000+ 35% €10,270 Parent Computation (2+ children) 2026 Income bracket Rate Deduction €0 - €30,000 0% €0 €30,001 - €41,000 15% €4,500 €41,001 - €60,000 25% €8,600 €60,000+ 35% €14,600 Parent Computation (2+ children) 2027 Income bracket Rate Deduction €0 - €37,000 0% €0 €37,001 - €50,000 15% €5,550 €50,001 - €60,000 25% €10,550 €60,000+ 35% €16,550 Parent Computation (2+ children) 2028 Generous tax cut for parents substantial overhaul of Malta's income tax bands for parents and married couples with children, over three years be applied to the next €12,000 in income, followed by the 25% rate up to €60,000. Any income above €60,000 will pay 35% tax. Families in this category stand to gain the largest benefit, with a max- imum tax saving of €10,000 over the three-year period. Over a 25-year span, the total tax savings for one family could reach €257,000. Married couple computations Married couples with one child, totaling around 2,400 families, will see their tax-free bracket increase to €22,500 by 2028. The maximum tax saving for this group is projected at €2,175 by the end of the third year, with a poten- tial saving of up to €65,000 over 23 years. For the 5,000 married couples with two or more children, the tax- free threshold will climb to €37,000 by 2028, up from €29,500 in 2026. This group is projected to save up to €6,000 by 2028, with potential savings of €150,000 over 25 years. In all four categories, income ex- ceeding €60,000 will continue to be taxed at the current 35% rate, but the bracket reductions mean this rate will apply to a smaller portion of the taxpayer's overall income. allowance to increase by €250 measures, Finance Minister Clyde Caruana says