OpenAccountants/Malawi/Malawi Personal Income Tax

Malawi Personal Income Tax

Name: OpenAccountants MCP Server
Author: OpenAccountants

Source-cited draft: personal income tax for Malawi (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Applicable period 2025Source-cited draft· Last updated Jun 25, 2026

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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Key figures — Malawi, 2025

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 scaleTaxation Act (Chapter 41:01)

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.

The full Guide

Personal income tax (PAYE) bands — 2024/2025

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) MWK/month (approx — confirm upper boundary not stated for this band; reform date noted) (Taxation Act (Chapter 41:01), Eleventh Schedule (PAYE))
25% band — 25% on the next MK 350,000 (i.e. MK 150,001–500,000 per month) percent (approx — confirm upper boundary; the 25% band was removed from 1 Jan 2026) (Taxation Act (Chapter 41:01), Eleventh Schedule (PAYE))
30% band — 30% on income from MK 500,001 to MK 2,550,000 per month percent (approx — confirm lower boundary) (Taxation 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) percent (Taxation Act (Chapter 41:01), Eleventh Schedule (PAYE))
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))
Non-resident individual rate — Income from a Malawi source is taxable; employment income is taxed via PAYE on the same scale (approx — confirm whether a flat non-resident rate applies to specific income types) (Taxation Act (Chapter 41:01))
Residence test — An individual is ordinarily resident in Malawi based on physical presence/permanent home; tax is nonetheless levied on a source basis (approx — confirm day-count threshold) (Taxation 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) percent (Pension Act, 2011)
Fringe benefits tax (FBT) — Employer-provided fringe benefits are taxed in the employer's hands at 30% percent (approx — confirm rate and that it sits on the employer) (Taxation Act (Chapter 41:01))
Individual return filing — Most employees are taxed finally through PAYE; those with other income file under self-assessment (Taxation Act (Chapter 41:01))

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Personal income tax (PAYE) bands — 2024/2025

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) MWK/month (approx — confirm upper boundary not stated for this band; reform date noted) (Taxation Act (Chapter 41:01), Eleventh Schedule (PAYE))

25% band — 25% on the next MK 350,000 (i.e. MK 150,001–500,000 per month) percent (approx — confirm upper boundary; the 25% band was removed from 1 Jan 2026) (Taxation Act (Chapter 41:01), Eleventh Schedule (PAYE))

30% band — 30% on income from MK 500,001 to MK 2,550,000 per month percent (approx — confirm lower boundary) (Taxation 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) percent (Taxation Act (Chapter 41:01), Eleventh Schedule (PAYE))

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))

Non-resident individual rate — Income from a Malawi source is taxable; employment income is taxed via PAYE on the same scale (approx — confirm whether a flat non-resident rate applies to specific income types) (Taxation Act (Chapter 41:01))

Residence test — An individual is ordinarily resident in Malawi based on physical presence/permanent home; tax is nonetheless levied on a source basis (approx — confirm day-count threshold) (Taxation 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) percent (Pension Act, 2011)

Fringe benefits tax (FBT) — Employer-provided fringe benefits are taxed in the employer's hands at 30% percent (approx — confirm rate and that it sits on the employer) (Taxation Act (Chapter 41:01))

Individual return filing — Most employees are taxed finally through PAYE; those with other income file under self-assessment (Taxation Act (Chapter 41:01))