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Ethiopia vs Malawi
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇪🇹 Ethiopia
vs
🇲🇼 Malawi
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–35%
Fiscal modernization continuing; bracket adjustments for inflation
No change
0–35%
35% top; IMF program conditions
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
15%
15% standard
No change
16.5%
16.5% VAT maintained
No change

Corporate Tax Rate

Corporate Tax Rate
30%
30%; industrial parks offer incentives
No change
30%
30%; mining sector developing
No change

Capital Gains Tax

Capital Gains Tax
15%
15% maintained
No change
30%
30% CGT maintained
No change

Social Security & Payroll

Social Security / Payroll
~17%
Pension expansion targeted
No change
~10%
MASM; pension coverage expanding
No change
State, Regional & Local Taxes

🇪🇹 EthiopiaRegional State Taxes

Ethiopia's 11 regional states and 2 chartered cities (Addis Ababa, Dire Dawa) have their own revenue authorities. Regional states collect income tax on employees of regional civil servants and businesses registered in their regions. Agricultural income tax is exclusively regional, though poorly collected in rural areas. The Ethiopian Revenues and Customs Authority (ERCA) administers federal taxes. Addis Ababa has the most developed tax administration. Turnover tax (TOT) of 2% applies to businesses below VAT threshold.

🇲🇼 MalawiDistrict & City Councils

Malawi's 28 district councils and city/town assemblies levy property rates, trading licences, and local service charges. The Malawi Revenue Authority (MRA) administers national taxes. Malawi is landlocked and one of the world's poorest countries — highly dependent on tobacco exports (declining due to health campaigns), tea, and sugar, plus significant international aid. An IMF Extended Credit Facility has been supporting fiscal consolidation. The kwacha has experienced significant depreciation, complicating tax bracket real values over time.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Ethiopia vs Malawi: Key Tax Differences (2026)

💰 Income Tax: Ethiopia and Malawi have similar top income tax rates (0–35% vs 0–35%).

🛒 VAT/Sales Tax: Malawi has a higher consumption tax (15% vs 16.5%).

🏢 Corporate Tax: Corporate rates are similar in both countries (30% vs 30%).

📈 Capital Gains: 🇪🇹 Ethiopia taxes investment gains at a lower rate (15% vs 30%), benefiting investors.

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All 🇪🇹 Ethiopia comparisons →All 🇲🇼 Malawi comparisons →