The Greek government is rolling out a far reaching tax reform in 2026 with measures worth €1.76 billion that introduce permanent tax cuts and income boosts for millions of taxpayers. The overhaul reshapes the income tax scale while channelling substantial benefits to families with children, young adults up to 30 and several professional categories.
The revised tax system is designed to support a broad range of households and workers, offering reductions that ease the burden on roughly four million citizens. New provisions deliver sharper incentives for younger taxpayers by eliminating income tax entirely for those up to 25 who earn up to €20,000 and lowering rates for individuals aged 26 to 30.
The updated income tax scale reduces rates by 2% for earnings between €10,000 and €40,000, introduces a 39% bracket for incomes from €40,000 to €60,000 and maintains a 44% rate for earnings above €60,000. Families with children will see significant additional reductions, with tax rates falling progressively based on the number of dependents.
The reform deepens support for families by cutting the 20% rate on €10,000 to €20,000 even further for parents, with rates adjusted to 18% for one child, 16% for two and 9% for three. Households with four or more children will pay 0% on incomes up to €20,000, while all families receive further reductions on the €20,000 to €30,000 bracket depending on the number of dependents.
The legislation also introduces substantial relief for property owners, including a 50% ENFIA reduction for residents of settlements up to 1,500 people, or 1,700 for the Evros region, provided the property value does not exceed €400,000. Smaller communities gain additional benefits as living expense imputed taxation drops by 30% to 35%, with newer vehicles having their imputed values calculated according to emissions.
The rental market is also affected by a new 25% tax rate on annual rental income of €12,000 to €24,000, a cut from the previous 35%. Most tenants will receive the equivalent of one month’s rent back each year starting in 2026, while long term leases of previously vacant homes will enjoy a three year income tax exemption.
Freelancers receive targeted support through multiple channels, including zero or reduced income tax for young professionals up to 30 and parents who are self employed. New mothers working as freelancers will avoid imputed income for up to three years, and reduced minimum declared income thresholds will apply for professionals operating in communities of up to 1,500 residents and school canteen operators.
The reform package strengthens efforts to curb tax evasion by extending incentives linked to electronic payments until the end of 2026. Public sector doctors will see their on call tax rate drop from 22% to 20%, and updates to the taxation framework for the security forces will also take effect from 2026.
Employees and pensioners are expected to feel the financial benefit immediately through higher net monthly earnings as withholding adjustments take place from January 2026. Self employed individuals and farmers will experience the impact upon filing their 2026 tax returns in March 2027.
