Malta among Europe’s lowest for top personal income tax rate at 35%

Malta’s top personal income tax rate of 35 per cent places it among the lowest in Europe, ranking 12th from the bottom when compared to 35 European countries analysed by the Tax Foundation for 2026.

Across most European jurisdictions, personal income tax systems are progressive, meaning higher earners pay a higher marginal rate. However, the level at which top rates are set varies significantly, revealing a clear divide between Northwestern and Eastern Europe.

At the upper end of the spectrum, Denmark imposes the highest top personal income tax rate at 60.5 per cent. Rates exceeding 50 per cent are also found in France, Austria, Spain, Belgium, Portugal and Sweden. Top earners in Slovenia and Netherlands also face rates close to this level.

By contrast, the lowest top personal income tax rates are recorded in Bulgaria and Romania at 10 per cent. Rates below 25 per cent are also in place in Moldova, Hungary, Ukraine, Georgia, Czechia and Estonia.

The average top personal income tax rate across the 35 European countries stands at 38.5 per cent, rising to 43.4 per cent among European OECD members. In 18 countries, the top rate exceeds 40 per cent.

Among Europe’s five largest economies, the highest rate ranges from 45 per cent in United Kingdom to 55.4 per cent in France, a gap of around 10 percentage points.

The data highlights a strong regional split. Nordic and Western European countries typically apply top marginal rates between 45 per cent and 60 per cent, while many Eastern and Central European economies levy considerably lower rates, in some cases operating flat-tax systems that keep top rates subdued.

Malta’s 35 per cent rate therefore positions it below the European average and closer to the lower-tax jurisdictions in Central and Eastern Europe rather than the higher-tax regimes of Northwestern Europe.