Budget 2027 · Monday 26 October 2026
Budget 2027 and the self-employed in Malta
Malta’s Budget for 2027 is presented on Monday 26 October 2026. On the day, this page will set out what it changes for freelancers, sole traders and anyone self-employed on the side, in euros, and marked as announced until it becomes law. Until then: what you pay under the rules in force today, and what to watch for.
What the self-employed pay today
Income tax and Class 2 social security on a year’s net profit, worked out by the same engine the Settlano app runs. On Budget night the announced figures will sit beside these, at the same profit levels.
| Net profit | Income tax | Class 2 | You keep | Effective rate |
|---|---|---|---|---|
| €20,000 | €1,600.00 | €3,000.00 | €15,400.00 | 23.0% |
| €35,000 | €5,350.00 | €4,362.28 | €25,287.72 | 27.7% |
| €50,000 | €9,100.00 | €4,362.28 | €36,537.72 | 26.9% |
Employed full-time with a side income, the side profit pays no Class 2, and the part-time flat rate usually beats the bands:
| Salary | Side profit | Standard bands | TA22 flat rate |
|---|---|---|---|
| €25,000 | €5,000 | €1,250.00 | €500.00 |
| €25,000 | €10,000 | €2,500.00 | €1,000.00 |
Computed by the Settlano engine, the app's own, compiled for this site, on 2026 rates. Single filer, born 1962 or later, figures on net profit, steady year. Every amount regenerates from the rules config whenever it changes.
For your own figure, use the self-employed tax calculator. More profit levels are in what a Maltese freelancer actually keeps.
What to watch on 26 October
The income tax bands
Budget 2026 widened the tax-free band for single people and added wider bands for married couples and single parents with one child, or with two or more. Watch whether the bands move again for 2027, and whether anything is aimed at the self-employed specifically. Today’s bands are in the figures box below.
The VAT exemption threshold
Article 11 lets a small business stay out of charging VAT up to €35,000 of turnover a calendar year. Doubling it to €70,000 was proposed during the 2026 election campaign. Nothing has been announced. Our guide explains how the threshold works today.
Class 2, the part-time rate and provisional tax
Class 2’s weekly minimum and maximum are reset every year. Watch too for any change to the TA22 part-time flat rate or its annual cap, and to the provisional tax instalments.
Leave and support for the self-employed
A Budget 2026 measure extending paid parental leave to self-employed parents took effect in September 2026. The Malta Chamber of SMEs has published its proposals for this Budget.
When changes take effect
Tax measures announced in a Budget usually apply from 1 January of the following year, once they are made law, and some are phased in over several years. Until then, file and pay on the rules in force: the Malta tax deadlines do not move because a Budget was read.
The Settlano app and this site’s calculators change their figures only once the Malta Tax and Customs Administration publishes the new rates, and each figure keeps a link to its source.
On the day
Within hours of the speech, this page will list every measure that touches the self-employed, the table above with the announced figures beside today’s, and links to the official Budget documents. Each change will be marked as announced until it is law.
The Budget date: Lovin Malta, MaltaToday, The Malta Independent, 20 September 2026.
Common questions
When is Malta's Budget 2027?
On Monday 26 October 2026. The Prime Minister announced the date on 20 September 2026.
Will income tax go down for the self-employed in 2027?
Nobody outside the Ministry for Finance knows until the speech. The 2026 bands apply until they are changed, and this page will say on the day what the Budget announces and when it takes effect.
Is the VAT exemption threshold going up to €70,000?
Doubling it was proposed during the 2026 election campaign; nothing has been announced. Today the Article 11 threshold is €35,000 of turnover a calendar year.
When do Budget measures take effect?
Tax measures usually apply from 1 January of the following year, once they are made law, and some are phased in over several years. Until then, file and pay on the rules in force.
How much tax does a self-employed person pay in Malta today?
It depends on your net profit and your family status. The table on this page shows income tax and Class 2 at three profit levels on the 2026 rules, and the self-employed tax calculator works it out for your own figure.
Know what’s yours the day you’re paid, whatever the Budget does.
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