New Tax Rates in Greece: Lower Taxes for Families and Youth

At the International Fair in Thessaloniki, Greek Prime Minister Kyriakos Mitsotakis presented a tax reform that will take effect on January 1, 2026.

The primary objective of the changes is to alleviate the tax burden on citizens, particularly workers, pensioners, and large families.

🔻Key changes

• Reduction of all tax rates (except the basic 9%) by 2 percentage points.
• Introduction of additional benefits for families with children — the more children, the lower the rate.
• Establishment of a new intermediate rate for incomes from €40,000 to €60,000 — 39% instead of 44%.
• Special conditions for young people under 30.

📌New tax scale from 2026

Additionally:

• For young people under 25, income tax up to €20,000 is eliminated.
• For young people aged 26–30, the rate on income from €10,000 to €20,000 will be 9%.

💡Examples of savings

👨‍💼 Worker with €20,000 annual income:

• no children — 20% tax (saves €400);
• 2 children — 16% tax (saves €600);
• 3 children — 9% tax (saves €1,300);
• 4 children — 0% tax (saves €1,680).

👩‍💼 Worker with €30,000 annual income:

• no children — saves €400;
• 1 child — saves €800;
• 2 children — saves €1,200;
• 3 children — saves €2,100;
• 4 children — saves €4,100.

📌 For many families, this is equivalent to an extra monthly salary, and for large families, even two extra salaries per year.

⏰When to expect changes
All new rules will come into force in January 2026. Workers and pensioners will notice reduced deductions already in their first paychecks of the new year.