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Malawi
Individual - Sample personal income tax calculation
Last reviewed - 21 April 2023The 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 350,000 will be taxed at 25%.
- The next MWK 2,050,000 will be taxed at 30%.
- The excess of MWK 2,500,000 will be taxed at 35%.
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 350,000 | 25 | 87,500 |
| Next MWK 550,000 | 30 | 165,000 |
| Total | 252,500 | |
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 350,000 | 25 | 87,500 |
| Next MWK 2,050,000 | 30 | 615,000 |
| Residual, which is MWK 4,000,000 | 35 | 1,400,000 |
| Total | 2,102,500 | |
