Source-cited draft: personal income tax for Malawi (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
Source-cited draft.Written from sources but not reviewed by a licensed practitioner, so it may be incomplete or wrong. General reference only; don't file or take a position on it without professional review.
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Every figure is drawn from this Tax Guide and cited to its source.
Tax-free monthly band
First MK 150,000 per month taxed at 0% MWK/month (Raised to MK 170,000/month from 1 Jan 2026)Taxation Act (Chapter 41:01), Eleventh Schedule (PAYE)View source ↗
25% band
25% on the next MK 350,000 (i.e. MK 150,001–500,000 per month)Taxation Act (Chapter 41:01), Eleventh Schedule (PAYE)
30% band
30% on income from MK 500,001 to MK 2,550,000 per monthTaxation Act (Chapter 41:01), Eleventh Schedule (PAYE)
35% top band
35% on monthly income above MK 2,550,000 (above MK 30,600,000 per year)Taxation Act (Chapter 41:01), Eleventh Schedule (PAYE)View source ↗
Reform effective 1 January 2026
0% to MK 170,000; 30% MK 170,001–1,570,000; 35% MK 1,570,001–10,000,000; 40% above MK 10,000,000 (monthly) (Applies from 1 Jan 2026, not the 2024/2025 year)Public Notice — New Tax Measures (MRA)View source ↗
Non-resident individual rate
Income from a Malawi source is taxable; employment income is taxed via PAYE on the same scale
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Other Malawi computations in the OpenAccountants Tax Library.
Residence test
An individual is ordinarily resident in Malawi based on physical presence/permanent home; tax is nonetheless levied on a source basisTaxation Act (Chapter 41:01)
Employee pension contribution (deductible before PAYE)
PAYE is computed after deducting the employee's pension contribution (minimum 5% of pensionable emoluments)Pension Act, 2011View source ↗
Fringe benefits tax (FBT)
Employer-provided fringe benefits are taxed in the employer's hands at 30%Taxation Act (Chapter 41:01)
Individual return filing
Most employees are taxed finally through PAYE; those with other income file under self-assessmentTaxation Act (Chapter 41:01)
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.