Madagascar Tax Calculator (2026)
Income tax rates and take-home pay for Madagascar
Madagascar Income Tax Brackets (2025)
| Bracket | Income Range | Rate |
|---|---|---|
| Non-taxable range | MGA 0 - MGA 350,000 | 0.0% |
| 5% bracket | MGA 350,000 - MGA 400,000 | 5.0% |
| 10% bracket | MGA 400,000 - MGA 500,000 | 10.0% |
| 15% bracket | MGA 500,000 - MGA 600,000 | 15.0% |
| 20% bracket | MGA 600,000+ | 20.0% |
Minimum IRSA liability
Fixed amount: MGA 3,000 per year
Applies when tax liability exceeds MGA 0
Key Facts
Tax Year
2025
Currency
MGA
Top Rate
20.0%
Brackets
5 brackets
Tax-Free Threshold
MGA 350,000
Social Contributions
0 items
Assumptions
- · Model uses IRSA (salary income tax) applicable to resident employees with employment income.
- · Minimum IRSA liability of MGA 3,000 is modeled as a fixed surcharge applied after bracket calculations.
- · Employee social contributions (1% pension, 1% health, 1% training = 3% total) are deductible from gross income before IRSA calculation, per stated deductions.
- · Employer social contributions (13% pension, 5% health, 1% training) are excluded as per schema rules (employer-only charges).
- · Dependent tax credit of MGA 2,000 per month (MGA 24,000 annually) is not applied; model assumes no dependents per default person definition.
- · No church tax, no optional expat regime, no business income complications assumed.
- · Legal minimum salary and related caps on contributions are not explicitly modeled due to lack of current 2025 LMS figure; contribution calculations use stated percentages without monthly maximums.
Frequently asked questions
What is the income tax system like in Madagascar?
Madagascar uses a progressive income tax system (IRSA) with five brackets ranging from 0% to 20%. Income up to MGA 350,000 is tax-free, then rates increase incrementally: 5% from MGA 350,000-400,000, 10% from MGA 400,000-500,000, 15% from MGA 500,000-600,000, and 20% on income above MGA 600,000. There is also a minimum IRSA liability of MGA 3,000 that applies regardless of your tax bracket.
Are there social contributions I need to pay as an employee in Madagascar?
Yes, employees in Madagascar pay social security and training contributions totaling 3% of gross income. This includes 1% for pension, 1% for health insurance, and 1% for training. These contributions are deducted from your gross income before income tax is calculated, which effectively reduces your taxable income.
How much will I take home if I earn MGA 500,000 per year in Madagascar?
At MGA 500,000 gross annual income, you would pay 3% in employee social contributions (MGA 15,000), leaving MGA 485,000 as your taxable income. Income tax would be calculated on the progressive brackets, resulting in income tax of approximately MGA 7,500, plus the minimum IRSA surcharge of MGA 3,000. Your approximate take-home pay would be around MGA 459,500 after all deductions.
Do expats or remote workers pay different taxes in Madagascar?
The tax calculator uses the standard IRSA system applicable to resident employees with employment income in Madagascar. There is no special optional expat regime modeled here, so remote workers and expats would generally follow the same progressive tax brackets and social contribution rules as local employees, provided they are tax residents of Madagascar.
Is there a tax-free threshold in Madagascar?
Yes, Madagascar has a non-taxable range where the first MGA 350,000 of annual income is not subject to income tax. Once your income exceeds this threshold, you enter the 5% bracket and pay tax on the amount above MGA 350,000. However, the minimum IRSA liability of MGA 3,000 still applies if you have any taxable income.
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