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Malawi vs South Africa
Tax Rate Comparison

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

πŸ‡²πŸ‡Ό Malawi
vs
πŸ‡ΏπŸ‡¦ South Africa
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–35%
35% top; IMF program conditions
No change
18–45%
Top rate maintained; NHI funding discussions
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
16.5%
16.5% VAT maintained
No change
16%
VAT raised to 16% from 1 April 2026 (Budget 2025)
β–² +0.5pp vs 2025
Corporate Tax Rate
Corporate Tax Rate
30%
30%; mining sector developing
No change
27%
Stable; National Health Insurance funding debate
No change
Capital Gains Tax
Capital Gains Tax
30%
30% CGT maintained
No change
~18%
Possible review of inclusion rate
No change
Social Security & Payroll
Social Security / Payroll
~10%
MASM; pension coverage expanding
No change
~2%
NHI contribution framework being developed
No change
State, Regional & Local Taxes

πŸ‡²πŸ‡Ό Malawi β€” District & 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 β€” 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.

πŸ‡ΏπŸ‡¦ South Africa β€” Provincial & Municipal Taxes

South Africa's 9 provinces do not levy their own income tax β€” this is national. Municipalities levy property rates (0.5%–2.5% of assessed value/year), utilities, and refuse levies. Cape Town and Johannesburg have relatively higher municipal rates. Load-shedding prompted energy-related tax credits in recent budgets.

⚠️ 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.

Malawi vs South Africa: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡ΏπŸ‡¦ South Africa has a higher top income tax rate (0–35% vs 18–45%). πŸ‡²πŸ‡Ό Malawi is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Both countries have comparable consumption tax rates (16.5% vs 16%).

🏒 Corporate Tax: πŸ‡ΏπŸ‡¦ South Africa offers a lower corporate rate (27% vs 30%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡ΏπŸ‡¦ South Africa taxes investment gains at a lower rate (18% vs 30%), benefiting investors.

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