Higher Tax-Free Threshold
Increased from €19,500 to €22,000 annually – providing relief for all taxpayers
Family Deductions
New child deductions of €1,000-€1,500 per child for eligible families
Green & Housing Incentives
Deductions for EV purchases, home loans, rent, and disaster insurance
👤Personal Income Tax Changes
1. Increased Tax-Free Threshold
Before 2026
€19,500
From 2026
€22,000
Extra €2,500 tax-free – savings of up to €500 annually!
2. New 2026 Tax Brackets
3. Child & Student Deductions
New annual deductions for dependent children or students up to age 24:
First Child
€1,000
Second Child
€1,250
Third Child & Each Additional
€1,500
Household Income Limits
- • Up to €100,000 for 1-2 children
- • Up to €150,000 for 3-4 children
- • Up to €200,000 for 5+ children
4. Housing & Green Incentives
Loan Interest & Rent
Deductions for housing loan interest or rental payments
Up to €2,000
Green Investments
Including electric vehicle purchases
Up to €1,000
Home Insurance
Coverage against natural disasters
Up to €500
5. Severance Payments
Severance payments due to employment termination will now have special tax treatment:
Flat Tax Rate
20%
Tax-Free Allowance
€200,000
⚠️New Compliance Requirements
Mandatory Tax Returns
All individuals aged 25 and over will be required to submit annual income tax returns.
Electronic Rent Payments
Rent payments exceeding €500 must be made electronically, starting July 1, 2026.
Ready to Calculate Your 2026 Taxes?
Use our free calculator to see exactly how the 2026 tax reform affects your net salary, with comparisons to the pre-2026 system.
Try the Tax Calculator