A new Nationalist Government will reduce personal taxes and leave more money in the pockets of workers, single people, families, the self-employed and pensioners

Il-Kap tal-PN Alex Borg jippreżenta pakkett ta’ sitt miżuri għal sistema ta’ taxxa aktar ġusta, moderna u favur min jaħdem

• New tax bands, with the highest threshold rising to €80,000
• The cost-of-living adjustment will no longer be eaten up by tax
• Part-time work and overtime tax-free up to €10,000
• Incentives for families hosting foreign students
• A €1,000 Skills Wallet
• Removal of stamp duty on every transfer of property

A Nationalist Government will be a government that leaves more money in your pocket. We will reduce taxes so that workers, single people, single parents, pensioners, businesses and the self-employed keep more money in their hands.

This was stated by Partit Nazzjonalista Leader Alex Borg during a press conference he addressed this morning together with PN candidates Adrian Delia and David Pace Ross, during which they presented the PN’s proposals for a fairer personal taxation system.

The Leader of the Partit Nazzjonalista said that many Maltese and Gozitan families are finding it difficult to cope with the cost of living, with food, rent, bills, childcare and basic services all having gone up, while the personal tax system has failed to reflect today’s economic reality.

He described the current tax bands as outdated. For many years, increases in wages and in COLA have not meant more real money in people’s pockets, because much of these increases has been eaten up by tax. This is the effect of fiscal drag: a wage increase intended to help people keep up with the cost of living does not make a worker rich, yet it can still push them into a higher tax band.

Alex Borg said this is neither fair nor helpful to the economy, and that this is why the Partit Nazzjonalista is presenting a comprehensive reform of the personal taxation system that aims to give A Fresh Start to people’s pockets.

This reform is built on six key measures:

1. Comprehensive personal tax reform
   The PN will widen all tax bands and raise the threshold for the highest rate from €60,000 to €80,000 over a period of two years. This reform will lead to tax cuts for workers, the self-employed, families and pensioners, with a guaranteed minimum benefit of €1,200 per year for every worker, self-employed person and pensioner.
   A single person will pay no tax on the first €15,000 of income, 15% up to €20,000, 25% up to €80,000, and 35% only on income above €80,000. Married couples without children will pay no tax on the first €19,000, 15% up to €26,000, 25% up to €80,000, and 35% only on income above €80,000.
   For families with children, the benefits will be greater. A married couple with one child will pay no tax on the first €25,000, 15% up to €37,000, 25% up to €80,000, and 35% only on income above €80,000. A couple with two children will pay no tax on the first €41,000 and 15% up to €55,000. For families with three or more children, there will be a rate of just 15% on income between €41,000 and €80,000.
   The proposal also caters for single parents and custodians. A parent and custodian with one child will pay no tax on the first €20,000, 15% up to €32,000, and 25% up to €80,000. A parent and custodian with two children will pay no tax on the first €35,000 and 15% up to €48,000. For single parents with three or more children, there will be a rate of just 15% on income between €35,000 and €80,000.
   
   
2. Annual adjustment of tax bands in line with COLA

Under a new Nationalist Government, all tax bands will rise every year by the same amount as COLA. This means that the cost-of-living adjustment will be passed on in full to workers, the self-employed and pensioners, and will no longer be eaten up by tax.

• Incentive for those who work part-time or overtime
  The first €10,000 of income from part-time work or overtime will be tax-free. This is a measure that rewards those who make an extra effort and leaves more money in the pockets of those who work.

• Incentives for families hosting foreign students
  Families hosting foreign students will have the income they earn from this sector completely tax-free. This measure will help families while also strengthening an important sector of the Maltese economy.
  
  
• A €1,000 Skills Wallet for every Maltese citizen
  Every Maltese citizen aged 18 and over will receive a €1,000 Skills Wallet, renewed every three years, so they can update their skills, train for new opportunities or move forward in the world of work.
  The PN said that our country cannot keep speaking about a quality economy without investing directly in people. The Skills Wallet gives individuals choice and removes the financial concern linked to training, helping them change career or improve their skills.
  
  
• Reform of stamp duty on property transfers
  A new Nationalist Government will fully remove stamp duty, without any value limit, on every transfer of immovable property passed on by inheritance.
  The PN will also remove stamp duty on the succession of family businesses passed on by inheritance, whether this involves shares in companies or immovable property used for commercial activity. This is a measure designed to protect family businesses, jobs and continuity from one generation to the next.
  In addition, a new Nationalist Government will fully remove stamp duty on transfers of immovable property by donation from parents to children or grandchildren. This means that Maltese and Gozitan families will be able to pass on their wealth to their children with greater peace of mind.

Alex Borg said that this reform, which will be introduced by a Nationalist Government, will give back between €230 million and €265 million per year directly to Maltese families once fully implemented. Since it will be introduced gradually over two years, the initial cost will be around €110 million to €130 million per year. More money in people’s pockets will also lead to an increase in domestic consumption of around €200 million per year, which in turn will generate between €50 million and €70 million in additional revenue through VAT, National Insurance and other taxes.

During this conference, the Partit Nazzjonalista also launched an online calculator allowing people to compare how much tax they would pay under the PN’s proposed tax plan, the current 2026 rates and Labour’s announced plans for 2028.

The Leader of the Partit Nazzjonalista said these measures have been costed, are feasible and will be implemented by a new Nationalist Government. They are measures that will leave more money in people’s pockets, so that people can live better and have greater peace of mind in their daily lives.

Alex Borg said that A Fresh Start means an economy that works for people, not a system that takes from those who work every day and gives them a little back before an election. The PN is not proposing gimmicks or one-off cheques, but a permanent reform that rewards work, strengthens families and builds a fairer economy.

“These are measures that leave more money in the pockets of workers, families, the self-employed and pensioners. Money in people’s pockets so they can live better. This is an economy that delivers for people. This is a fairer tax system. This is A Fresh Start for the Maltese and Gozitan people.”

In recent days, the Partit Nazzjonalista has explained its vision for Malta and Gozo: a new economy that creates quality economic niches, attracts new investment and generates more wealth for the country.

The Partit Nazzjonalista has already explained how a new Nationalist Government will create new opportunities through the Mediterranean Maritime Fuel Hub, which is estimated to generate around €450 million in the Maltese economy in its first three years; investment in Data, AI and New Space, which is expected to generate around €100 million in the first five years; and investment in the creative economy through the PORT – Cultural District project in Marsa, with an investment of around €350 million and revenue of around €110 million per year for the Maltese economy.

Through the new revenue that will be generated by the new innovative industries that will be created, we will be able to implement these new tax-cutting proposals. A Nationalist Government will also invest in healthcare workers through the financial packages they deserve, invest in students through a 25% increase in all stipends, and invest in education so that our country has the specialised skilled workers it needs.

Partit Nazzjonalista candidate Adrian Delia explained the reform of the tax bands in greater detail. He said the starting point is that the average Maltese wage is around €2,130 per month — more than €1,000 less than the average wage in the European Union, which is around €3,155 per month. This means a gap of more than €1,000 per month, or more than €12,000 per year. When this is added to the cost of living, the burden on people is significant. Growth must not only reach balance sheets, but also people’s pockets. He said that reforming personal taxation is therefore crucial.

Adrian Delia explained how the Partit Nazzjonalista’s reform will change all tax bands according to a person’s status and leave more money in people’s pockets. The same applies to removing tax from the cost-of-living adjustment, which will mean more income for 300,000 workers.

PN candidate David Pace Ross spoke further about the proposal aimed at helping hosting families — families who host foreign students who come to study in our country. A Nationalist Government will ensure that the income they earn from the service they provide remains fully in their pockets, because it will be tax-free. This measure will help keep the family unit closer together and will give recognition to families who are helping the country’s economy, while also incentivising the education sector in our country.

He also explained how the Skills Wallet being proposed by the Partit Nazzjonalista will give every Maltese citizen aged 18 and over the opportunity to receive a €1,000 Skills Wallet, deposited directly into the person’s wallet, so that every Maltese citizen has the opportunity to improve their skills.

07.05.2026

Click here to see PN’s proposed tax bands as against what Labour is proposing