Malawi tax rates
The top rates a resident individual pays on each kind of income, computed by the Sovereign tax engine from its Malawi tax profile, with a provisional figure from a published summary where the engine has none yet.
Sources incomplete — at least one figure has no accepted source yet. Figures last changed 4 November 2026. Profile last reviewed 27 May 2026.
Scroll across the table to see all tax rates.
| Salary | Capital gains | Dividends | Interest | Rent | Crypto gains | |
|---|---|---|---|---|---|---|
| Malawi | 40% | 30%* | 10%† | 20%† | not computed | 0% |
* Provisional — not yet verified by the Sovereign engine. capital gains: from Malawi Revenue Authority, read 10 November 2026. The engine's own figure replaces a provisional one as soon as the Malawi profile carries an accepted source for it.
† This figure rests on a PwC tax summary, not on the statute itself. The summary is the only source on file for it.
Reviewer's notes: what is still open on this profile
- Individual residential gross rent is 15% final from 14 April 2026, with no expense deduction and only withholding credit; residential/commercial class, period and withheld tax are required.
- Adjusted capital-asset basis/CPI, listed-share consideration and statutory exemptions require classification; the inherited zero CGT is not supported.
Each figure is the tax on one more unit of a very large amount of that income, with every layer the engine models: surtaxes and uncapped social contributions included. It is the top marginal rate, not the average rate you pay on all your income.
What is the top income tax rate in Malawi?
The top rate on a salary is 40%. It is the tax on each extra unit of a very high salary, with surtaxes and uncapped social contributions included. The income tax scale alone reaches 40% above MWK 120,000,000.
How are capital gains taxed in Malawi?
Provisionally 30%: the top rate on a long-term capital gain from a Malawi Revenue Authority summary read on 10 November 2026. The Sovereign engine has not yet computed this rate, so treat it as a pointer, not a verified figure. Listed-share exemption (held 12+ months) removed 31 Dec 2025; gains join income taxed at 0%/30% for individuals. The rate does not depend on how long you held the asset.
How are dividends and interest taxed in Malawi?
The top rate is 10% on dividends and 20% on interest.
How is crypto taxed in Malawi?
Malawi taxes a gain on crypto assets as a capital gain, and our model computes 0% tax on it.
Does Malawi tax foreign income?
Yes. Malawi taxes its residents on their worldwide income. A tax treaty or a credit for foreign tax can reduce the tax on income from abroad.
Does Malawi have a wealth tax?
No. Malawi has no recurring national tax on net wealth in our model. Property taxes and taxes on gifts or inheritances are separate.
Does Malawi have an exit tax for individuals?
No. In our model Malawi does not tax an individual's unrealised gains when the individual moves abroad.
When do you become tax resident in Malawi?
The Malawi day test (183 days in an assessment year; later consolidated law also has a qualifying rolling route): 183 days in the April-to-March assessment year can establish residence; rolling-only cases need review. The statutory definition says 'includes', so a count below 183 cannot alone prove nonresidence. A different assessment period, other residence facts, treaty residence and any post-2014 amendment effects need direct review.
Residence decides whether Malawi taxes you on these rates. See the Malawi day-count test and count your own days.
Sources
The Malawi profile cites 5 sources for these rules, 4 of them from a government or a statute. A provisional figure in the table names its own source under the table.
- Taxation (Amendment) (No. 2) Act, 2025, Act 36 of 2025 · official, retrieved 2026-11-03
- Public Notice: New tax measures under amended Taxation and Value Added Tax laws (March 2026) · official, retrieved 2026-11-03
- Law & Practice Training Handbook, November 2021 · official, retrieved 2026-11-03
- Use of CPIs for adjusting basis of a capital asset under s2, October 2026 · official, retrieved 2026-11-03
- PwC Worldwide Tax Summaries - Malawi individual taxes · summary, retrieved 2026-05-27
The model covers the general rules for a resident individual. It does not cover every deduction, credit, tax treaty or local tax, and rules change after the check date above. Did you find an error? Tell us, with the source.
Compare Malawi with other countries
Top rates do not show what you would pay. Sovereign applies these rules to your own assets, income and debts, and compares the result across 165 countries. Put Malawi side by side with other countries, see every country or try the live demo.
Other countries in Africa: Mozambique, Namibia, Nigeria, Rwanda, Senegal, Tunisia.