Politis

Tax Reform: Benefits Begin to Materialize

Published January 21, 2026, 15:25
Tax Reform: Benefits Begin to Materialize

The tax reform has come into effect, and citizens are beginning to see its benefits with a reduction in the tax burden and an increase in disposable income. The reform aims to create a fairer, more modern and competitive tax system, simple and effective, tailored to the needs of society and the economy. The key element of the reform is the increase in the tax-free income threshold to €22,000 for everyone, regardless of family status. Tax rates have been set more fairly and proportionally, with 20% for income from €22,001 to €32,000, 25% from €32,001 to €42,000, 30% from €42,001 to €72,000 and 35% for income above €72,000, reducing the tax burden on the middle class. Specific examples are given to demonstrate how the reform translates into lower taxes and increased income for different types of households, such as households with two children, a mortgage and photovoltaic systems, single-parent families with rent and an electric vehicle, single individuals with rent and an electric vehicle, and large families with energy upgrades. The government has provided a digital calculation tool, where citizens can see their personal benefit from the tax reform. This reform, which was voted on after two decades, aims to strengthen social cohesion and create stable foundations for sustainable and competitive development.