2026 Tax rates and updated FS4 form

On 5 January 2026, and following on from the announcement made by the Minister of Finance during the Malta Budget for 2026 introducing new married and parent income tax brackets for families with one or more children, the Malta Tax and Custom Administration (the ‘MTCA’) has updated their website with the new tax rates for 2026.

Furthermore, the MTCA has also published a communication on their website to outline the new tax brackets and the applicable conditions.

In connection with the changes discussed above, the FS4 Payee Status Declaration Form (the ‘FS4 Form’) has been amended accordingly, incorporating fields to cater for the new income tax rates introduced. Completion of the FS4 Form by employees would enable employers to accurately withhold tax through payroll in accordance with the updated rates as may be applicable to taxpayers.

It should be noted that the Income Tax Act, Chapter 123 of the Laws of Malta, has not yet been updated to reflect the new married and parent income tax brackets announced during the Malta Budget for 2026.

Deloitte’s view

In light of these changes, it is recommended that employers proactively request employees who are eligible for the new married and parent tax rates to complete an updated FS4 Form.  

Taking early action will help employers mitigate the risk of incorrect tax deductions and ensure ongoing compliance with Malta payroll and reporting obligations.

Deloitte remains available to assist impacted employers in navigating the changes and ensuring that these changes are implemented accurately.