East & Southern Africa
Malawi: tax at a glance
A 30% corporate rate and progressive personal tax to 35%, with tobacco exports dominating the trade balance and a persistent foreign-exchange shortage.
Worldwide (residence-based)
Last verified July 2026Some figures indicative
The taxes
- Personal income (top)
- 35%
- Corporate income
- 30%
- Capital gains
- Included in taxable income.
- VAT
- 16.5%
- Dividends (WHT)
- 10%
- Interest (WHT)
- 20%
- Royalties (WHT)
- 20%
- Social security (employee)
- None
- Social security (employer)
- None
- Wealth tax
- None
- Inheritance / estate
- None
- Property tax
- City rates apply on property.
- Other
- Non-resident companies are taxed at 35%. Foreign-exchange availability is a material practical constraint.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Frequently asked
What is the income tax rate in Malawi?
The top marginal personal income tax rate in Malawi is 35%. Progressive bands rising to 35% on higher income.
What is the corporate tax rate in Malawi?
The headline corporate income tax rate is 30%.
Does Malawi tax capital gains?
Capital gains for individuals: Included in taxable income..