Filenews 16 January 2026 - by Eleftheria Paizanou
The Department of Taxation made a new tool available to taxpayers yesterday, in order to make it easier for them to calculate the income tax they will be required to pay for the tax year 2026, following the changes brought about by the tax reform.
With one click and a few moves, taxpayers can calculate the tax deductions and exemptions they will have, depending on the family income and the composition of the family.
Through the tax calculation tool, which essentially functions as a simulation of the tax return, taxpayers can calculate the amount of tax they will pay for 2026, the deductions they are entitled to, as well as the resulting benefit.
At the same time, the amount of income tax that would have been paid before the tax reform is also listed.
This tool was put into operation a few hours after the publication of the declaration for claiming tax deductions (T.F. 59), as well as the explanatory guide and is available in the special section "Tax Reform 2026", on the home page of the Tax Department's website.
It is reminded that taxpayers will have to fill in the declaration claiming tax deductions, so that the accounting departments of the companies in which they work can proceed with the relevant calculations for the discounts, the increase in the tax-free allowance and the change in the tax scales, in order for the changes to be applied to the payroll of the current month.
What taxpayers should pay attention to
The income tax calculation tool includes sections for both the existing and the new tax regime. Taxpayers, in order to calculate their taxation for the tax year 2026, should select the "with reform" section. Five sections that include a number of fields are automatically opened.
Taxpayers will have to choose the composition of the family to which they belong, i.e. whether it is a single person, a family or a single-parent family. In the case of a family, they are required to fill in the total number of children, the number of dependent children and the gross income of a spouse or non-dependent children. In another field, they will have to fill in the gross family income (i.e. of spouses or cohabitants), as well as the gross salary of the taxpayer.
At the same time, fields related to pensions, rents, other taxable income, income that is not taxed but subject to the GHS contribution, as well as income that is not taxed, are filled in.
In addition, those who have received a tax deduction for their first employment will have to declare it. The second section concerns the various deductions that taxpayers receive, such as memberships to guilds, donations to charities, other deductions of rented property, and home insurance against natural disasters.
Deductions and discounts
In the third section, the deductions for insurance and contributions to funds and schemes, such as social insurance, GHS, provident funds, health care, life insurance, pension plans and disability insurance, are supplemented, which are limited to one fifth (1/5).
In the fourth section, deductions for children are automatically deducted, while taxpayers add rent and mortgage interest. In another field, green investments in the main residence are registered.
By filling in all the categories, at the top of the page the annual benefit resulting for the taxpayer from the reform is recorded. On the right side of the page appears a summary table with the calculation of income tax, which includes the total taxable income, deductions, tax deductions, taxable income, as well as the income tax resulting from the change in tax scales.
If the taxpayer selects the "before tax reform" field, two sections are displayed concerning income and deductions for insurance and pension plans, which are also limited to one fifth (1/5). The taxpayer can then compare the results of the two returns, the current and the new tax regime, in order to calculate the benefits.
The beneficiaries of discounts
It is recalled that with the reform, the tax-free allowance was increased to €22,000, the rates of the tax scales were amended, while the discounts for each first child or student amount to €1,000, for a second child to €1,250 and for three children or more to €15,000. In addition, the discounts for rents and interest on mortgages amount to €2,000, while for green investments to €1,000.
Additional tax deductions are granted depending on the family's income criteria. Specifically, for families with one or two children, beneficiaries are those with incomes of up to €100,000, for families with three or four children, those with incomes of up to €150,000, while for families with five children or more, the income limit is €200,000. With the reform, all taxpayers between the ages of 25 and 71, regardless of income, are obliged to submit a tax return.
