Bonus Tax Calculator
See exactly how much tax Malta's FSS system takes from your bonus — and what lands in your pocket.
Common Bonus Amounts
Tax on bonus: €500 (25.0%)
Important Notes
- Bonuses are taxed at your marginal rate under FSS — there is no separate "bonus tax" in Malta
- SSC is calculated on your basic weekly wage — not on bonuses
- The statutory government bonus (COLA) is separate from performance bonuses
- Uses 2026 or 2027 (Budget 2027) tax brackets for your selected status
Of every €100 bonus, you keep €75 at your current income level.
How much tax will I pay on a bonus in Malta?
A bonus is added to your yearly income and taxed at your marginal rate under the FSS: 0%, 15%, 25% or 35%. A single employee earning €30,000 keeps €750 of every €1,000 bonus in both 2026 and 2027. No social security is deducted from bonuses.
- Single, tax-free band (2026 and 2027)
- €12,000
- Married + 1 child, tax-free band
- €17,500 → €20,000 (2027)
- Married + 2 children, tax-free band
- €22,500 → €30,000 (2027)
- Top rate
- 35% above €60,000
Frequently Asked Questions
How is a bonus taxed in Malta?
Malta has no separate bonus tax. Under the FSS (Final Settlement System), a bonus is added to your annual income and taxed at your marginal rate — the rate of the tax bracket your total income falls into. For example, if you earn €30,000 and receive a €2,000 bonus, the bonus is taxed at 25%, leaving you €1,500 net.
Is the 13th month salary taxable in Malta?
Yes. A 13th month salary or Christmas bonus paid by your employer is treated as normal employment income and taxed at your marginal rate under FSS. Note this is different from the statutory government bonus (COLA bonus), which is paid in fixed quarterly amounts.
Do I pay social security (SSC) on my bonus in Malta?
No. Class 1 social security contributions in Malta are calculated on your basic weekly wage only — bonuses, overtime and allowances are excluded from the SSC calculation. Only income tax applies to your bonus.
Can a bonus push me into a higher tax bracket in Malta?
Partially, yes. If your salary plus bonus crosses a bracket threshold, only the portion above the threshold is taxed at the higher rate — your existing salary is not re-taxed. This calculator flags when that happens and shows the exact extra tax.
How much of a €1,000 bonus do I keep in Malta?
It depends on your income level in 2026: if your total income stays within the tax-free band you keep all €1,000; at the 15% bracket you keep €850; at 25% you keep €750; and at 35% you keep €650. Use the calculator with your actual salary for the precise figure.
How does Budget 2027 change the tax on my bonus?
Only married couples and parents with children pay less. In 2027 the tax-free band rises to €20,000 for a married couple with one child and €30,000 with two or more children (€16,000 and €24,000 for single parents). Single people and couples without children keep the 2026 bands, so their bonus is taxed the same. Select 2027 in the calculator to see your figure.
Know someone who needs this?
Email a link to this free tool to a friend or colleague.