Income tax (FMY)

The employee income tax (FMY) is the income tax your employer withholds from every payslip. It is not charged on the gross salary but on your taxable base — the gross minus your own EFKA contributions. For 2026 the scale changed sharply under Law 5246/2025 (amending Articles 15 and 16 of the Income Tax Code, Law 4172/2013), in force from 1 January 2026. This page walks through the four pieces that, combined, decide how much tax falls on each salary.

The base progressive scale

The tax is progressive: income is sliced into brackets and each bracket is taxed at its own rate — not the whole income at a single rate. So even when you move into a higher bracket, the higher rate only touches the part above the threshold. The base scale (no dependent children, ages over 30) applies to annual taxable income:

The first rate is 9% and the top rate is 44%. Because the scale is banded, your average (“effective”) tax rate is always lower than the marginal rate of the bracket you reach.

The per-child scale (Table I.B)

The most unusual feature of the Greek reform: dependent children do not just grant a deduction — they lower the rate itself on the low brackets. The more children, the lower the rate on income from 10.000 € to 30.000 €, and for families with four or more children the first 20.000 € become tax-free at a zero rate. Brackets above 30.000 € do not change per child.

Pending confirmation: the cells for 3 children (bracket 10.000 €–20.000 €) and for 5+ children, and the exact way the rate drops further for each child beyond four, are held provisionally and will be checked against the gazette of Law 5246/2025. The rows for 0, 1 and 2 children are the most cross-corroborated.

The age band (young employees)

On top of the child scale, the law grants a special relief for young people, applied to the first two brackets (up to 20.000 €). For employees aged 25 or under the rate on that slice is 0% — in practice, zero tax up to 20.000 €. For ages 26 to 30 the rate on the same slice is 9%. The calculator applies the age band as a “floor”: for each bracket, the lower of the child rate and the age rate applies. Exactly how age combines with children above 20.000 € is held provisionally and will be confirmed at review.

The tax reduction and the tax-free threshold

Once the scale has produced the tax, the tax reduction is subtracted (Article 16 of the Code, as amended by Article 43 of Law 5246/2025). It is a fixed annual amount that depends on children, and it is what creates the tax-free threshold: below it, the scale tax is fully covered by the reduction and comes to zero.

With no children the reduction is 777,00 €, which works out to a tax-free threshold of roughly 8.633,33 € (the reduction divided by the first rate). The reduction is not unlimited: it tapers by 2% of the income above 12.000 € a year until it reaches zero — so middle and higher salaries gradually receive a smaller reduction, or none. Families with 5 or more children are exempt from this taper. Whether the reduction is computed on taxable or on total income is held provisionally (the calculator uses annual taxable income) and will be confirmed at review.

How it all combines — and the ÷14 annualization

Both mechanisms apply at once: first the scale by children and age gives the tax, then the tax reduction is subtracted. That these are two separate, additive mechanisms (not one) is confirmed arithmetically by the large-family threshold itself: for four children, the child-rate scale already makes the first 20.000 € tax-free, and the four-child tax reduction then offsets the tax on the next bracket too — pushing the tax-free threshold up to roughly 28.777,78 €. Confirming that the enacted text keeps the two mechanisms separate, not folded together, remains an open question for review.

Finally, because private-sector pay is spread over 14 periods (with the bonuses and holiday allowance), the withholding is annualized: the annual tax is worked out on the taxable base times 14 and divided back by 14 for the monthly withholding. So the monthly figure already spreads the tax across the bonuses too.

The values come from named primary sources, but they have not been through this site’s own review and sign-off — do not use them for a real, accounting or tax decision. For an official amount, go to the cited source or the responsible authority.

The full content of this page is still in preparation and subject to review.