Philenews

Tax Reform: Zero Tax for Tens of Thousands in 2026 and Income Increases for 200,000 Citizens

Published February 11, 2026, 17:21
Tax Reform: Zero Tax for Tens of Thousands in 2026 and Income Increases for 200,000 Citizens

The new Tax Reform has come into effect and brings significant changes, such as an increase in the tax-free threshold to €22,000, new tax brackets, and targeted tax breaks for families. Approximately 200,000 taxpayers have already seen an increase in their net income, and it is estimated that 30,000 will be completely exempt from income tax in 2026. The reform aims to return income to citizens, support the middle class, and strengthen social cohesion. In addition, the reform includes changes for businesses, such as the abolition of the deemed dividend distribution and the reduction of the Defense Contribution, benefiting more than 30,000 small businesses. Tax incentives are also provided for innovation, green investments, and modern business activities. The government describes the reform as a significant change that lays a solid foundation for a fairer and more competitive economy.