State Budget Law for 2026
PIT
Check PwC’s analysis of the 2026 State Budget, focusing on Personal Income Tax (IRS). Stay informed about all the changes. Have questions? PwC has the answers!
General rates
Update of the limits of the progressive Personal Income Tax (PIT) brackets by 3.51%, through the automatic mechanism provided by law, and a reduction of the rates for the 2nd to 5th brackets by 0.3 percentage points. Thus, the general rate table becomes as follows:
| PIT rates for 2026 | ||
|---|---|---|
| Taxable Income (€) | Rate | Deduction (€) |
| Up to 8,342.00 | 12.50% | 0.00 |
| Above 8,342.00 up to 12,587.00 | 15.70% | 266.94 |
| Above 12,587.00 up to 17,838.00 | 21.20% | 959.26 |
| Above 17,838.00 up to 23,089.00 | 24.10% | 1,476.45 |
| Above 23,089.00 up to 29,397.00 | 31.10% |
3,092.77 |
| Above 29,397.00 up to 43,090.00 | 34.90% | 4,209.94 |
| Above 43,090.00 up to 46,566.00 | 43.10% | 7,743.27 |
| Above 46,566.00 up to 86.634.00 | 44.60% | 8,441.48 |
| Above 86,634.00 | 48.00% | 11,387.17 |
Minimum Subsistence Level
The reference value for the minimum subsistence level is updated to reflect the increase in the minimum monthly wage.
Compensation and Allowances for Volunteer Firefighters
Extension of the PIT exemption to compensation and allowances related to voluntary activity, provided to firefighters by humanitarian associations, up to an annual maximum limit per firefighter of six times the Social Support Index (IAS). These compensations and allowances will now be exempt from PIT up to this limit.
Rapid Wear Professions – Deductions
Extension of deductions for taxpayers with rapid wear professions. Amounts spent on health insurance, personal accident insurance, and life insurance that exclusively cover risks of death, disability, sports injury, or retirement/complementary retirement due to old age are deductible, under the terms and limits set out in Article 27 of the PIT Code.
Deduction for Requesting an Invoice
It becomes deductible from PIT, for requesting an invoice, an amount corresponding to 15% of the VAT borne by any member of the household, appearing on invoices relating to:
- retail sale of books in specialised shops;
- theatre, music, dance, and other artistic and literary activities;
- operation of theatres and related activities;
- activities of libraries and archives;
- activities of museums; and
- activities of historical sites and monuments.
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State Budget 2026 – Everything you need to know about the tax changes
Follow the tax changes introduced by the State Budget Law for 2026. Have questions? PwC has the answers!
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