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Malawi
Individual - Sample personal income tax calculation
Last reviewed - 04 March 2020The annual PAYE threshold is MWK 540,000. The monthly PAYE is taxed as follows:
- First MWK 45,000 will not be taxed (i.e. 0%).
- The next MWK 5,000 will be taxed at 15%.
- The next MWK 2,950,000 will be taxed at 30%.
- The excess of MWK 3,000,000 will be taxed at 35%.
Example 1: If one earns MWK 1,000,000 per month, then the PAYE will be as follows:
| Monthly income | Tax rate (%) | PAYE (MWK) |
| First MWK 45,000 | 0 | 0 |
| Next MWK 5,000 | 15 | 750 |
| Residual, which is MWK 950,000 | 30 | 285,000 |
| Total | 285,750 | |
Example 2: If one earns MWK 3,500,000 per month, then the PAYE will be as follows:
| Monthly income | Tax rate (%) | PAYE (MWK) |
| First MWK 45,000 | 0 | 0 |
| Next MWK 5,000 | 15 | 750 |
| Next MWK 2,950,000 | 30 | 885,000 |
| Residual, which is MWK 500,000 | 35 | 175,000 |
| Total | 1,060,750 | |
