MW · Africa · MWK
Malawi
Tax rates
Income Tax
40%
Top rate, progressive scale
Source: Taxation (Amendment) (No. 2) Act, 2025 (Malawi Revenue Authority) · as of 2025-12-30Corporate Tax
30%
Statutory rate
Source: Tax Foundation — Worldwide Corporate Tax Rates · as of 2025-01-01VAT
17.5%
Standard rate
Source: EY Worldwide VAT, GST and Sales Tax Guide 2026 — Malawi · as of 2026-01-01Capital Gains Tax
40%
Source: EY Worldwide Personal Tax and Immigration Guide 2025-26 — Malawi · as of 2025-10-01Wealth Tax
0%
Not levied
No verified data yet for: Crypto Tax.
Estimate your income tax
Enter a gross annual salary to estimate 2025 national income tax for Malawi using verified brackets — total tax, effective and marginal rate, net income, and the per-band breakdown. National income tax only; social contributions and sub-national taxes are excluded unless the notes say otherwise. The full calculator covers every country with verified rates.
The calculator needs JavaScript — every figure stays readable without it. The full bracket schedule is under Brackets & notes below, and the calculator page lists every country's schedule.
Brackets, notes & in practice
Income Tax
| Threshold | Rate |
|---|---|
| MWK 0 | 0% |
| MWK 2,040,000 | 30% |
| MWK 18,840,000 | 35% |
| MWK 120,000,000 | 40% |
This is the Eleventh Schedule's table for employment income. Taxable income other than employment income is instead taxed under a separate table: 0% on the first MWK 2,040,000, then a flat 30% on the excess.
Malawi taxes employment income on a progressive scale under the Taxation Act's Eleventh Schedule: 0% on the first MWK 2,040,000 of annual income, then 30% and 35% on successive bands, rising to a top rate of 40% above MWK 120,000,000. Taxable income other than employment income is instead taxed at 0% up to the same threshold and a flat 30% above it.
VAT
The standard VAT rate rose from 16.5% to 17.5% effective 1 January 2026.
In practice
- Filing
Malawi's VAT return periods are monthly, and VAT registration applications are submitted online through the Malawi Revenue Authority (MRA) portal.
Source: EY Worldwide VAT, GST and Sales Tax Guide 2026 — Malawi · as of 2026-03-23- Exemptions
Malawi's Value Added Tax (Amendment) Act 2026, effective 14 April 2026, expanded VAT exemptions to include fish, dairy products, honey, and wheat flour, and newly zero-rated large passenger buses, selected tourism-related goods, and laundry soap.
Source: Malawi Revenue Authority — New Measures for Customs & Excise and Domestic Taxes for the Fiscal Year 2026/27 · as of 2026-04-14
Capital Gains Tax
Malawi taxes individual capital gains as ordinary income, included in assessable income and subject to the normal progressive income tax rates, which reach a top rate of 40%. Gains on a taxpayer's principal residence and transfers between spouses are exempt.
In practice
- Exemptions
Malawi excludes from tax capital gains on the disposal of an individual's principal residence, transfers between spouses or former spouses (including from a deceased spouse's estate), and disposals of personal and domestic assets not used in connection with a trade.
Source: EY Worldwide Personal Tax and Immigration Guide 2025-26 — Malawi · as of 2025-10-01
Wealth Tax
No net wealth tax is levied in Malawi. The Taxation Act (Chapter 41:01, Malawi's principal tax statute) contains no wealth, net worth, or general property tax provision; it is exclusively an income-tax statute covering income tax, company tax, withholding tax, and fringe benefits tax. MalawiLII's full current Acts catalogue lists no separate wealth-tax act — the only wealth-adjacent entry is the unrelated Accommodation and Refreshment Tax Act, Cap. 41:02.