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Changes to Income Tax and How Much You'll Pay

Published January 4, 2026, 08:12
Changes to Income Tax and How Much You'll Pay

The new tax framework resulting from the tax reform came into effect on January 1st. Employees with income above the tax-free threshold will see an increase in their disposable income due to the reduction in the tax burden. Key changes include raising the tax-free allowance to €22,000 (from €19,500) and revising the tax brackets. Additionally, tax deductions are provided for family composition, interest on housing loans, and rent, as well as for green investments.