The Ministry of National Economy and Finance is launching a new digital application designed to make the benefits of income tax cuts more tangible. Starting soon, citizens will be able to see, with just one click, the increases they will have in their net salaries from January 1, 2026, when the new tax scale will be implemented. This move follows the Prime Minister’s announcements at the Thessaloniki International Fair, where permanent tax reductions and rate reforms were announced, with particular emphasis on supporting young people, families, and those with multiple children.
Features of the new Finance Ministry application
According to information, the application will allow citizens to:
- Enter their salary and immediately see the difference in their net pay.
- Compare current withholding with what will apply from January 1, 2026.
- Take into account personal and family parameters, such as number of children, to ensure accurate calculations.
- View results on both monthly and annual basis
The application is part of a broader government strategy to make tax policy more understandable and strengthen public trust. For the first time, employees, pensioners, and freelancers will be able to see with numbers how announcements about tax cuts translate into net income.
Young people up to 30 years old benefit most
Following Prime Minister Kyriakos Mitsotakis’ announcements and the specification of measures by the Minister of National Economy and Finance, it appears that the greatest tax reliefs concern young people up to 30 years old, as shown in the following examples:
- A 25-year-old employee in catering with 1,250 euros net per month will have an annual tax reduction of 2,480 euros, equivalent to almost two salaries.
- A young person up to 25 years old with annual income of 15,000 euros (980 euros net per month) will see their net income increase by 91 euros per month, from 980 to 1,071 euros.
- A 24-year-old with taxable income of 20,000 euros (1,251 net) will have an annual benefit of 2,483 euros, meaning an increase of 177 euros per month. Their net pay will reach 1,427 euros.
- A 25-year-old with income of 25,000 euros (1,500 net) will have a net increase of 229 euros per month, with their salary rising to 1,729 euros.
- For young people aged 26-30 with 15,000 euros income, the benefit is 650 euros annually, or 46 euros per month. With 20,000 euros income (1,250 net), the increase is 93 euros monthly, with salary rising from 1,250 to 1,343 euros. With 25,000 euros (1,500 net), the annual benefit is 1,400 euros, or 100 euros per month.
Other beneficiary categories
In any case, the benefits do not only concern young people, but extend to all categories of taxpayers, with scaling according to income and number of children.
Employees and pensioners with 40,000 euros income: without children they gain 600 euros annually, with one child 1,000 euros, with two children 1,400 euros, with three 2,300 euros, and families with multiple children 4,300 euros.
For income of 25,000 euros (1,500 net): without children benefit 300 euros, with one child 600 euros, with two children 900 euros. If the employee receives 14 salaries, the net increase is 64 euros per month (salary 1,564 euros). If receiving 12 salaries, the increase is 75 euros per month (salary 1,575 euros). With three children the benefit is 1,700 euros per year (129 euros per month), while with four children 3,180 euros (227 euros per month).
For income of 30,000 euros (approximately 1,700 net): without children the benefit is 400 euros annually, with one child 800 euros. With two children it reaches 1,200 euros, meaning 100 euros per month if receiving 12 salaries or 86 euros if receiving 14. With three children the annual benefit is 2,100 euros (150 euros per month) and with four children 4,100 euros (292 euros per month).
Published in MoneyPro of Parapolitika
