PAYE tax bands in Malawi
How much income tax comes off a monthly salary: MRA’s four PAYE bands, worked examples from K150,000 to K12 million, and when employers must pay it.
- Tax free: first K170,000
- Top rate: 40%
- Due: 14th of next month
Quick answer: Pay As You Earn (PAYE) is the income tax your employer takes from your salary and pays to the Malawi Revenue Authority (MRA). On a monthly salary the first K170,000 is tax free, the next K1,400,000 is taxed at 30%, the next K8,430,000 at 35%, and anything above K10 million at 40%. So a K300,000 salary pays K39,000 PAYE and a K1,000,000 salary pays K249,000. Employers must pay it to MRA by the 14th of the following month.
Work out your PAYE
Type your gross salary. It updates as you type.
Tax in each band
What do you need?
Tap a card to jump to it.
PAYE tax bands
From the PAYE Calculator on mra.mw, checked 22 October 2026. Rates apply to monthly taxable income.
- Monthly taxable incomeRate
- First K170,000 a monthTax free0%
- Next K1,400,000Income from K170,001 to K1,570,00030%
- Next K8,430,000Income from K1,570,001 to K10,000,00035%
- Above K10,000,000Every kwacha over K10 million40%
Each rate only applies to the slice of income inside its band, not to your whole salary. Earning K1 more never leaves you with less take-home pay.
How much PAYE on my salary?
Monthly PAYE on a gross taxable salary, using MRA’s bands. We checked these against MRA’s own calculator.
- Monthly salaryPAYE
- Salary K150,000Take home K150,000K0
- Salary K300,000Take home K261,000K39,000
- Salary K500,000Take home K401,000K99,000
- Salary K1,000,000Take home K751,000K249,000
- Salary K2,000,000Take home K1,429,500K570,500
- Salary K12,000,000Take home K7,829,500K4,170,500
How to work out PAYE yourself
Example: a monthly taxable salary of K2,000,000.
-
Take off the tax-free K170,000
K2,000,000 minus K170,000 leaves K1,830,000 to tax. The first K170,000 pays nothing.
-
Tax the next K1,400,000 at 30%
K1,400,000 x 30% = K420,000. That leaves K430,000.
-
Tax what is left (up to K8,430,000) at 35%
K430,000 x 35% = K150,500. Nothing is left, so the 40% band does not apply.
-
Add the slices together
K420,000 + K150,500 = K570,500 PAYE. Take-home before any other deductions: K1,429,500. MRA’s PAYE Calculator on its home page gives the same answer.
These figures are PAYE only. Your payslip may show other deductions, such as pension contributions or loans, which MRA’s calculator does not cover. Ask your employer’s payroll office how they treat allowances and benefits.
Use MRA’s PAYE Calculator
Free, no login, on the mra.mw home page.
-
Open the calculator
Go to mra.mw, scroll to Tools For You and tap PAYE Calculator. Choose Monthly or Annually.
The calculator opens over the MRA home page. -
Enter your gross pay and tap Calculate PAYE
It shows your gross pay, the PAYE deduction and your net pay, with the bands underneath.
A K300,000 monthly salary: K39,000 PAYE, K261,000 net.
When PAYE must be paid
From MRA’s October 2026 reminder.
Employers deduct PAYE every pay day and pay it to MRA by the 14th day of the following month: for example, PAYE on September 2026 salaries was due on 14 October 2026. Withholding tax and fringe benefits tax share the same date.
Returns can be filed online through Msonkho Online or at any MRA Domestic Taxes office. MRA says late payment attracts penalties and not filing a return is an offence. A business needs a TPIN first: see our TPIN guide.
- PAYE due
- 14th of next month
- File
- Msonkho Online
- Late
- Penalties
- Call MRA
- 672, toll free
MRA links
PAYE FAQ
What are the PAYE tax bands in Malawi?
Per month: first K170,000 at 0%, next K1,400,000 at 30%, next K8,430,000 at 35%, and income above K10,000,000 at 40%.
How much is tax free in Malawi?
The first K170,000 of monthly taxable income is taxed at 0%.
How much PAYE do I pay on K500,000?
K99,000 a month: nothing on the first K170,000 and 30% of the remaining K330,000.
How much PAYE on K1,000,000?
K249,000 a month, leaving K751,000 before other deductions.
Is there an official PAYE calculator?
Yes. MRA has a PAYE Calculator under ‘Tools For You’ on the mra.mw home page; choose monthly or annual and enter your gross amount.
When must employers pay PAYE to MRA?
By the 14th day of the month after the salaries are paid, for example 14 October 2026 for September pay.
Did PAYE bands change in the 2026/27 budget?
MRA’s summary of the 2026/27 tax measures, effective 14 April 2026, lists no change to PAYE bands. It does add a 15% final tax on residential rental income, which is separate from PAYE.
How do I contact MRA?
Toll free 672, +265 1 832 685, WhatsApp 0996 278 690, or [email protected].
Related guides
GuideGet a TPINFree MRA registration online
GuideOpen a bank account8 banks compared
GuideMinimum wageK157,500 from 1 June 2026
GuideNational IDRegister, renew, replace, Nzika app
GuidePassportApply online, fees from K50,000
GuideRights at workLeave, notice, severance calculator
GuideDual citizenshipForms AA, AC, AE for the diaspora
GuideEmbassies abroadChecked contacts, travel documents
GuideDeath abroadBringing a loved one homeSources: Malawi Revenue Authority, mra.mw: PAYE Calculator (bands and results), reminder to pay taxes due in October 2026 and new measures for 2026/27. Worked examples are our arithmetic on MRA’s bands, checked against MRA’s calculator. Checked 22 October 2026.
