Malta 2026 Tax Guide for Families: The FS4 Categories That Can Save You Money

Von 1. Januar 2026, Malta introduced new “with children” tax tables that significantly lower income tax for eligible parents and married couples. These savings are substantial and for many households, the difference can exceed €2,000 per year – so it is worth getting your status right.

The Power of the FS4 – Payee Status Declaration

Before looking at tax tables, start with the FS4 (Payee Status Declaration). This form tells payroll which tax computation category to apply when calculating Pay As You Earn (FSS) deductions, which is why it directly affects how much tax is withheld from your salary each month.

Important: Don’t assume your status is ‘wrong’ just because your payslip shows ‘Single’ while you’re married. Many married couples use separate computation (often shown as ‘Single’ on payroll systems) because it can be more efficient when both spouses earn income – but the best outcome depends on your income split and which child-related category you qualify for.

To quickly see which category is best for your specific household income, our partners at Trimer have helpfully created a Salary Calculator to compare the 2026 categories side-by-side.

What Changed in 2026?

The MTCA introduced four brand-new tax categories specifically for families. In some cases these tables feature wider 0% and 15% brackets, meaning you keep more of your money before hitting the higher 25% and 35% bands.

TCN Eligibility

If you’re a Third-Country National (TCN), don’t assume the new 2026 “with children” tables automatically apply just because you have children. The updated FS4 asks for nationality and whether you hold Long-Term Resident status (Third Country). In the FS4 notes, the “with children” Parent / Married options are only available if you meet the underlying parent/married conditions and you are either (a) Maltese/EU/EEA or (b) a Maltese Long-Term Resident, with an added requirement (under that Long-Term Resident route) that the child is born in Malta and resident in Malta, so it’s worth checking eligibility before selecting your category.

Before we get into the tables below, make sure your FS4 choice matches your status to avoid incorrect payroll deductions.

2026 Tax-Free Thresholds (€0 Tax)

This table shows how much an individual can earn before paying any tax. The “Extra” column shows the bonus you get compared to a standard Single filer.

Choosing the Best Option: 4 Scenarios

Worked examples using the 2026 payroll bands and standard progressive-rate calculations. They’re illustrative, your result depends on eligibility, FS4 category selection, and your exact income profile.

Scenario 1: One Earner, 1 Child

Income Split: Jane €35,000 / Mark €0

In a single-income household, the Married (Joint) rates win because they provide the widest tax-free buffer for one salary.

Scenario 2: Two Earners, 1 Child

Income Split: Jane €20,000 / Mark €15,000

Once both parents work, “Separate Computation” is key. By both applying as Parents, you shield €29,000 of household income from tax.

Scenario 3: Two Earners, 2+ Children

Income Split: Jane €26,000 / Mark €15,000

With 2+ children, the “Double Parent” strategy is incredibly powerful. Mark’s entire salary becomes tax-free.

Scenario 4: High vs. Low Earner (Gap)

Income Split: Jane €50,000 / Mark €10,000 (1 Child)

Even if one spouse earns below the tax-free limit, the high earner’s “Parent” status usually results in a lower total bill than filing “Married Joint.”

FS4: Whose Job is it Anyway?

One of the biggest misconceptions in Malta is that your employer “sorts out” your tax status for you. In reality, it is a shared responsibility.

1. Your Responsibility: The Declaration

The employer cannot guess your household status. You must declare it.

• Update it when things change: If your circumstances change (marriage, separation, birth of a child, change in custody/maintenance arrangements, etc.), don’t leave payroll running on an outdated status: submit an updated FS4 as soon as possible so withholding matches your situation.
• The “Default” Trap: If you don’t provide the necessary declaration, payroll may have to apply a standard/default (and sometimes higher) deduction basis until your paperwork is in place, which can mean you temporarily overpay via payroll.

2. The Employer’s Responsibility: The Submission

Once you hand over the signed form, the responsibility shifts to the payroll department.

• Filing: Your employer must sign the form and submit the official FS4 to the MTCA.
• Implementation: They must update their payroll software to apply the correct 2026 brackets to your next paycheck.

Use the Calculator to Compare

Tri-Mer Services has built a specialized 2026 Malta salary/tax calculator that lets you compare all categories (Single, Married, and the new Parent-with-children tables). It’s the fastest way to check which table you should select on your FS4.

Disclaimer

This article is for general information purposes only and does not constitute personal tax or financial advice. The examples are illustrative and use simplified assumptions. Always confirm eligibility and the correct FS4 category with official guidance and/or a qualified professional before relying on any estimate.

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Should you require further assistance or need help completing the forms, our team is ready to support you. Feel free to contact us through the form provided and stay connected with us on social media for daily updates and insights.

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Quellen

• MTCA – “NEW TAX RATES, 2026” (PDF):
• MTCA – FS4 (Payee Status Declaration form (PDF):
• MTCA – FSS downloads page

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