New Tax Reform and Increase of the Tax-Free Threshold
January 11, 2026
After 23 years, the Parliament approved the new tax reform. From January 1, 2026, the defense tax will be abolished, and the extraordinary defense contribution will be significantly reduced. The reform increases the tax-free threshold and introduces new tax brackets. Parents with children are entitled to tax deductions that increase depending on the number of children. The Tax Commissioner has stated he will utilize new powers related to combating tax evasion.