Income Tax rate in Malawi 2023 | See pay as you earn tax calculator

Income tax rate in Malawi has been released to give you a financial edge over the financial market in the country? Everyone in Malawi should take note of the rapid changes in the Income-tax rates for each year.

To have more ideas on personal, corporate, and sales income tax rates, you must take into consideration the changes in tax bracket from year to year in the country as this could affect your gross economic income and expenditure greatly in Malawi.

You may also be asking: How is pay as you earn tax calculated in Malawi? Is there tax in Malawi? What is the tax rate per income? Which country has highest tax on salary?

Here, we will be taking you on a journey as we take a critical look at some frequently asked questions on the Income Tax rate or bracket in Malawi 2022 and all you need to know about the taxation system in Malawi. let’s proceed!

How much is Malawi income Tax rate for 2023?

Hence, as a foreigner moving into Malawi, nothing becomes as imperative as knowing a country’s income tax rate.

With the lucrative economy, as an entrepreneur or business owner, it’s could be quite inviting to invest and build a business in the country

  • The Personal Income Tax Rate in Malawi stands at 30 percent

Sample personal income tax calculation

The annual PAYE threshold is MWK 1,200,000. The monthly PAYE is taxed as follows:

  • First MWK 100,000 will not be taxed (i.e. 0%).
  • The next MWK 900,000 will be taxed at 25%.
  • The next MWK 2 million will be taxed at 30%.
  • The next MWK 3 million will be taxed at 35%.
  • The excess of MWK 6 million will be taxed at 40%.


However, before contemplating that, it would only be wise that you to check out the present sales tax rate.

How is pay as you earn tax calculated in Malawi?

The total tax payable is K0. 00 + K750 + K49, 500 which is K50, 250.00. If one were earning K3, 500, 000 per month, tax would be deducted as follows: first K30, 000 taxed at 0 percent equals K0. 00; next K5, 000 taxed at 15 percent equals K750 and the excess of K2, 965, 000 taxed at 30 percent is equal to K889, 500.

According to statistics from an article posted in trading economics, the tax rate can be considered low when compared with other countries.

That is all about Malawi’s income tax rate. If there is any questions Kindly bookmark this page and drop a comment below. 

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