By late September, the Finance Ministry’s first digital application will be operational, showing citizens the increases in net salaries from tax cuts and benefits from changes in rental income taxation. The second, personalized and more advanced version will be activated after the tax bill is passed in October and will require Taxisnet login credentials, utilizing each taxpayer’s actual data. This specific application will be available on the AADE website and will cover only income tax and rental taxation, not other measures such as the abolition of personal difference.
In the first phase, citizens will be able to enter information such as income level, age, number of children, and professional status to immediately see how much tax withholding decreases and how much their net earnings increase. Additionally, the application will show benefits for property owners from the new rental income taxation.
From January 1st, net salary increases for employees and pensioners
It should be noted that under the new tax scale, rates are reduced by 2 percentage points, except for the introductory 9%, while there are additional reliefs based on the number of children that can even reach zero taxes for large families and for incomes up to €20,000 for young people up to 25 years old. Also, incomes up to €20,000 earned by taxpayers aged 26 to 30 will be taxed at the low rate of 9%.
Employees and pensioners will see an increase in their net earnings from January 1, 2026, due to reduced withholding tax, while freelancers will see benefits in April 2027 when the 2026 income tax settlement occurs. In the rental sector, a new intermediate rate of 25% is introduced for incomes from €12,000 to €24,000 annually, significantly reducing the tax burden for middle-income property owners, who until now paid 35% tax on the portion of their income above €12,000.
Examples of salary increases
A young person up to 25 years old with €15,000 income (about €980 net per month) will have an annual benefit of €1,283. Net earnings increase by €91 per month, reaching €1,071.
An employee with €20,000 income (€1,251 net) will have a tax reduction of €2,483 per year, meaning +€177 per month, raising the salary to €1,427.
€25,000 salary (€1,500 net): increase of €229/month, new salary €1,729.
* An employee with €25,000 income without children will have a benefit of €300/year. With two children, the benefit reaches €900, while with three children it reaches €1,700.
* A parent with four children and €30,000 income will have an increase of €4,100 per year (€292/month), while with €50,000 income the benefit amounts to €4,850 annually.
