Malta Budget 2027: What It Means for Your Salary, Tax and Pension
Finance Minister Clyde Caruana presented Budget 2027 on 26 October 2026. There are no increases in income tax, VAT or social security rates. Families with children get the second step of the parent tax cut, every employee gets a €6.41 weekly COLA, and 2025 workers receive a tax-free Super Bonus of up to €1,000.
COLA 2027
€6.41 / week
€333.32 a year, up from €4.66
Minimum wage
€239.85 / week
+€10.41 including COLA
Super Bonus
Up to €1,000
Tax-free, paid Q1 2027
Pensions
+€10 / week
Tax-free up to €37,624
1. COLA and the minimum wage
The cost of living adjustment for 2027 is €6.41 per week (€333.32 a year) for full-time employees, paid pro rata to part-timers. It is part of the basic wage, so it is taxed and attracts SSC. The minimum wage goes up by €10.41 a week including COLA, under the 2023 agreement, taking the adult rate from €229.44 to €239.85 a week (about €12,472 a year). The Low Wage Commission will be reappointed to agree increases from 2028.
The statutory bonuses are unchanged: €121.16 weekly allowance in March and September and €135.10 statutory bonus in June and December. More in our COLA guide and minimum wage guide.
2. The 2027 tax bands for families
Budget 2026 started a three-year cut for working parents. 2027 is the second step. Single, married-without-children and parent-without-children rates do not change, and income above €60,000 is still taxed at 35%. The relief is applied through FSS automatically, so employers must use the new tables from the first 2027 payroll.
| Chargeable income | Rate | Subtract |
|---|---|---|
| €0 – €20,000 | 0% | €0 |
| €20,001 – €30,000 | 15% | €3,000 |
| €30,001 – €60,000 | 25% | €6,000 |
| Over €60,000 | 35% | €12,000 |
| Chargeable income | Rate | Subtract |
|---|---|---|
| €0 – €30,000 | 0% | €0 |
| €30,001 – €41,000 | 15% | €4,500 |
| €41,001 – €60,000 | 25% | €8,600 |
| Over €60,000 | 35% | €14,600 |
| Chargeable income | Rate | Subtract |
|---|---|---|
| €0 – €16,000 | 0% | €0 |
| €16,001 – €24,500 | 15% | €2,400 |
| €24,501 – €60,000 | 25% | €4,850 |
| Over €60,000 | 35% | €10,850 |
| Chargeable income | Rate | Subtract |
|---|---|---|
| €0 – €24,000 | 0% | €0 |
| €24,001 – €33,500 | 15% | €3,600 |
| €33,501 – €60,000 | 25% | €6,950 |
| Over €60,000 | 35% | €12,950 |
The tax-free thresholds and maximum savings are from the Budget. The 15%/25% limits and subtraction amounts are derived from them and match the published examples; check the final MTCA table once it is issued.
How much will you save?
| Category | Tax on €30,000 (2026 → 2027) | Tax on €42,000 (2026 → 2027) | Max saving vs 2025 |
|---|---|---|---|
| Married, 1 child | €2,225 → €1,500 | €5,225 → €4,500 | €1,450 |
| Married, 2+ children | €1,125 → €0 | €3,925 → €1,900 | €4,050 |
| Parent, 1 child | €3,225 → €2,650 | €6,225 → €5,650 | €1,150 |
| Parent, 2+ children | €2,175 → €900 | €5,175 → €3,550 | €3,250 |
For 2028 the Budget confirmed the final step: tax-free thresholds of €22,500 (married, 1 child), €37,000 (married, 2+), €18,000 (parent, 1 child) and €30,000 (parent, 2+), worth up to €2,175, €6,000, €1,800 and €5,000 a year respectively.
Our salary calculator now has a 2027 year option with the new bands, COLA and minimum wage.
Spouses will also file separate tax returns by default, with joint filing as an option. This changes how you file, not how much tax you pay.
3. The €1,000 Super Bonus
Anyone who was employed or self-employed in 2025, including working pensioners and part-timers, receives a tax-free one-off payment in the first quarter of 2027, by cheque from the Government (not through payroll):
- 2025 employment income of €12,000 or more: €1,000
- €11,000 – €11,999: €925
- Lower incomes: reduced amounts down to €500
The full scale and the eligibility of non-EU workers have not been published yet; some reports say third-country nationals without long-term residence are excluded.
4. Pensions
- Retirement, invalidity and widow's pensions: +€10 a week from January 2027 (including COLA)
- Tax-free pension income threshold: €37,104 → €37,624
- Maximum pensionable income for pensioners born before 1962: €25,500 → €28,000
- Pension contributions can be transferred between spouses in certain cases; details to follow
- Retirement age and contribution rates unchanged
See our pension guide and pension calculator.
5. Families, carers and business
- Carers Grant: up to €7,500 a year
- Adoption grant: +€1,000 to €13,000
- Foster parents: 10 extra days of paid leave
- €500 per child in post-secondary education (first half of 2027)
- Companies with turnover up to €1 million: 25% instead of 35% on profits they retain or reinvest
- VAT: fixed administrative penalties (€100 to €500) for missing receipts instead of criminal proceedings
6. Non-EU workers and tourists
Third-country nationals without long-term residence face a €800 work permit fee, a new €400 yearly infrastructure contribution, an €83 monthly driving licence fee and the end of free public transport and (for new registrations) free childcare. Full details in our Budget 2027 TCN guide and the TCN cost calculator.
The tourist eco-contribution rises to €8 a night (capped at €64) in hotels and €10 a night (capped at €80) in short lets from 1 January 2027.
Frequently Asked Questions
What is the COLA for 2027 in Malta?
The cost of living adjustment for 2027 is €6.41 per week (€333.32 a year) for full-time employees, up from €4.66 in 2026. Part-timers get it pro rata. It is added to the basic wage, so it is taxable and subject to SSC.
What is the minimum wage in Malta in 2027?
The national minimum wage rises by €10.41 a week including COLA, from €229.44 to €239.85 a week for workers aged 18 and over (about €12,472 a year). Minimum-wage earners continue to pay no income tax.
Do the tax bands change in 2027?
Only for parents and married couples with children. The tax-free band rises to €20,000 for married couples with one child, €30,000 with two or more children, €16,000 for a parent with one child and €24,000 for a parent with two or more. Single, married-without-children and parent-without-children rates are unchanged, and the 35% rate still starts above €60,000.
Who gets the €1,000 Super Bonus?
People who were employed or self-employed in 2025, including working pensioners and part-timers. Those who earned at least €12,000 receive €1,000 tax-free; lower earners get a reduced amount (€500 to €925). It is paid by the Government in the first quarter of 2027, not through payroll. Final eligibility rules are still awaited.
How much do pensions increase in 2027?
Retirement, invalidity and widow's pensions rise by €10 a week from January 2027 (including COLA). The tax-free threshold on pension income rises by €520 to €37,624, and the maximum pensionable income for pensioners born before 1962 rises to €28,000.
Do social security contributions change in 2027?
No. The Budget did not change SSC rates or the retirement age. The weekly maximum Class 1 contribution has stayed at €55.93 (post-1962) since 2024; the Department of Social Security publishes the 2027 table in January.
Malta Calculator Editorial Team
Financial Content Specialists | Malta Tax & Employment Experts
Our team specializes in Maltese tax law, social security contributions, and employment regulations. All content is reviewed against official sources from the Malta Tax and Customs Administration and the Department of Social Security.
Official Sources
- Ministry for Finance — Budget 2027
- CSB Group — Malta Budget 2027: Key Tax Measures
- Forvis Mazars — Malta Budget 2027
- PwC Malta — Malta Budget 2027
- RSM Malta — Progressive parent tax rates (2025–2028)
- MTCA — Tax rates for individuals
Data verified as of 27 October 2026. Rates and thresholds are subject to change based on Malta government budget announcements.
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