Malawi

Individual - Sample personal income tax calculation

Last reviewed - 21 July 2022

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%.

Example 1: If one earns MWK 1 million per month, then the PAYE will be as follows:

Monthly income Tax rate (%) PAYE (MWK)
First MWK 100,000 0 0
Next MWK 900,000 25 225,000
Total 225,000

Example 2: If one earns MWK 6.5 million per month, then the PAYE will be as follows:

Monthly income Tax rate (%) PAYE (MWK)
First MWK 100,000 0 0
Next MWK 900,000 25 225,000
Next MWK 2 million 30 600,000
Next MWK 3 million 35 1,050,000
Residual, which is MWK 500,000 40 200,000
Total 2,075,000