By Vangelis Dourakis

With the iconic interventions in the field of taxation, the preliminary draft budget of the new year “fits” € 1.76 billion of measures: in addition to describing the specific measures in the text it is clear that in April 2026 we will have a new adjustment. The aim is to set € 950 in April 2027 from the 880 euros it is today.

As is the case, each time the minimum earnings increase, a number of benefits, such as unemployment allowance, maternity allowance, three -year allowances, overtime pay and basic salaries of public officials will increase.

‘New’ income tax system

But what are the measures described in the budget?

In terms of income tax The following interventions will be made:

1) Reduction of tax rates by 2% for incomes from 10,000 to 40,000 euros.

Specifically, tax rates are reduced:

  • from 22% to 20% for income between 10,000 – 20,000 euros,
  • from 28% to 26% for income between 20,000 – 30,000 euros and
  • from 36% to 34% for income between 30,000 – 40,000 euros,

2) Introduction of a new tax scale with a rate of 39% for income between 40,000 and 60,000 euros,

3) The rate for income from 10,000 to 20,000 euros, which will now amount to 20% for taxpayers without children, is further decreased according to the number of children and even more for three -year -olds
4) As far as old men are concerned, there is a greater reduction in rates, and in particular, for families with four or more children the tax on incomes of up to 20,000 euros is resolved,
5) The rate of income from 20,000 to 30,000 euros, which will now amount to 26% for taxpayers without children, is also reduced by 2 percentage points for each child, regardless of the number of children:

  • 24% for taxpayers with 1 dependent child,
  • 22% for taxpayers with 2 dependent children,
  • 20% for taxpayers with 3 dependent children,
  • 18% for taxpayers with 4 dependent children and
  • 16% for taxpayers with 5 dependent children etc.

6) Reset tax on income of up to 20,000 euros of young people up to 25 years old and

7) Configuration at 9% of the rate for income from 10,000 to 20,000 euros of young people aged 26 to 30 years.

Predictions for retirees

Beyond the interventions also made in Rental Tax and ENFIAthere are also new measures for retirees beyond the € 250-500 reinforcement that will be paid each November, which will be implemented by 2026, are as follows:

  • Further increase in pensions based on inflation and GDP,
  • Failure to take into account the pension of pensioners due to their work when calculating the EAS and
  • Failure to set off 50% of the increase in pension with the personal difference from January 2026, and a complete removal of offsetting from January 2027. This measure is estimated to benefit about 671,000 pensioners immediately.

The total cost of rising pensions based inflation and GDP and taking into account the non -setting with the personal difference, it is estimated at 2026 at € 629 million.

What is provided for civil servants

“Package »measures exists for them too civil servants:

  • Horizontal salaries increase from April 2026, depending on the increase in the minimum wage, at an estimated cost of approximately EUR 358 million,
  • Reforming the payroll of the Armed Forces with increases applied from October 2025, annual costs of € 162 million (net costs of € 85 million after the restructuring of the Armed Forces structure) and Security Forces (Hellenic Police, Hellenic Police)
  • Increases in the compensation of a foreign service, special duties allowance and compensation for tuition tuition tuition for the children of the Ministry of Foreign Affairs, at an annual cost of € 30 million,
  • Wage Recognition (two salary scales) of the graduates
  • Establishment of a tax -free library allowance of faculty members and researchers, at an annual cost of approximately € 6 million and recognition of pre -service researchers in Higher Education Institutions (HEIs) and Technological Institutions, regardless of the employment relationship.

These are, of course, some of the changes that the new budget brings, as well as measures related to the housing crisis (eg rented tax reduction or abolition of ENFIA), the islands (VAT reduction), but also a 30%haircut of evidence.