Budget 2025: Tax Brackets and Exemptions for Singles, Married Couples, and Parents

Here’s a breakdown of the revised tax computations for singles, married couples, and parents starting in 2025.

Single Taxpayer Computation:

Starting next year, the raised non-taxable income threshold for single taxpayers will increase from €9,100 to €12,000. Income beyond this amount will be taxed as follows:

• The first €12,000 will be tax-free.

• Income between €12,001 and €16,000 will be taxed at 15%.

• Income from €16,001 to €60,000 will be taxed at 25%.

• Earnings above €60,000 will remain subject to the top rate of 35%.

Married Taxpayer Computation:

For married taxpayers, the tax-free threshold will rise from €12,700 to €15,000. The updated tax rates will apply as follows:

• The first €15,000 will be tax-free.

• Income between €15,001 and €23,000 will be taxed at 15%.

• Income from €23,001 to €60,000 will be taxed at 25%.

• Earnings above €60,000 will remain at 35%.

Parent Taxpayer Computation:

Tax-free threshold for parents will increase from €10,500 to €13,000. The tax rates will be structured as follows:

• The first €13,000 will be tax-free.

• Income between €13,001 and €17,500 will be taxed at 15%.

• Income from €17,501 to €60,000 will be taxed at 25%.

• Earnings above €60,000 will continue to be taxed at 35%.

Maltese Herald

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