How Income Tax Works in Greece (2026): Six Brackets, EFKA Deduction and Meiosi Forou
In 2026 Greece taxes employment income at six progressive rates from 9% to 44%, applied to the taxable base after deducting employee EFKA (social security) contributions from gross salary. A tax reduction called meiosi forou -- up to 777 EUR for taxpayers with no children -- reduces the final tax bill and is higher for taxpayers with children. Rates are set by Law 5246/2025; verify with AADE, the Greek Independent Authority for Public Revenue.
The six income tax brackets and how the taxable base is calculated
Greece applies six progressive income tax brackets to employment income under Law 5246/2025. The brackets do not apply to gross salary directly. Instead, the taxable base is calculated by subtracting employee EFKA (Eniaio Foro Koinonikes Asfalisis -- the unified social insurance fund) contributions from gross salary. The six brackets for 2026 are: 9% on taxable income up to 10,000 EUR. 20% on the slice from 10,001 to 20,000 EUR. 26% on the slice from 20,001 to 30,000 EUR. 34% on the slice from 30,001 to 40,000 EUR. 39% on the slice from 40,001 to 60,000 EUR. 44% on taxable income above 60,000 EUR. Each bracket applies only to the income that falls within it. A taxpayer with taxable income of 25,000 EUR pays 9% on the first 10,000, 20% on the next 10,000, and 26% on the remaining 5,000 -- not 26% on the full amount. This progressive structure means the effective rate is always lower than the marginal rate. After the brackets are applied, the resulting gross tax is reduced by the meiosi forou (tax reduction) described in the next section. Always verify current brackets with AADE, the Greek Independent Authority for Public Revenue.
The meiosi forou tax reduction: amount, tapering and the role of children
After calculating gross tax from the brackets, a tax reduction called meiosi forou (literally: tax reduction) is subtracted directly from the income tax owed, not from the taxable base. For a taxpayer with no children, the meiosi forou in 2026 is 777 EUR when taxable income does not exceed 12,000 EUR. For every 1,000 EUR of taxable income above 12,000 EUR, the reduction falls by 20 EUR. For example, a taxpayer with taxable income of 17,326 EUR has income of 5,326 EUR above the 12,000 EUR threshold; the meiosi forou is 777 minus (5.326 x 20) = 777 minus 106.52 = 670.48 EUR. The meiosi forou tapers to zero at sufficiently high taxable income. Once the reduction reaches zero it does not become negative -- it simply no longer reduces the tax bill. For a single taxpayer with no children, the reduction tapers to zero at approximately 50,850 EUR of taxable income. For taxpayers with dependent children, the meiosi forou is higher than the base 777 EUR. The precise amount depends on the number of qualifying children under Law 5246/2025. If you have dependent children, confirm the applicable amount with AADE or a qualified accountant. Law 5246/2025 also provides reduced tax scales for taxpayers under the age of 30 and for families with children. If you are under 30 or have children, ask AADE or your accountant whether a preferential scale applies to your situation.
Worked example: 20,000 EUR gross salary, single taxpayer
The following example is illustrative only. Confirm all figures with AADE or a payroll professional. Scenario: employee with gross annual salary of 20,000 EUR, single, no children. Step 1 -- Employee EFKA contributions: 13.37% x 20,000 = 2,674 EUR. Step 2 -- Taxable income: 20,000 minus 2,674 = 17,326 EUR. Step 3 -- Apply brackets: 9% on 10,000 = 900 EUR. 20% on 7,326 (the slice from 10,001 to 17,326) = 1,465.20 EUR. Gross bracket tax = 2,365.20 EUR. Step 4 -- Meiosi forou: 777 minus (20 x (17,326 minus 12,000) / 1,000) = 777 minus 106.52 = 670.48 EUR. Step 5 -- Income tax: 2,365.20 minus 670.48 = 1,694.72 EUR. Step 6 -- Net take-home: 20,000 minus 2,674 (EFKA) minus 1,694.72 (income tax) = 15,631.28 EUR (about 78% of gross). This example shows how EFKA contributions reduce the taxable base and how the meiosi forou lowers the final tax. The effective income tax rate on gross salary in this example is around 8.5%, well below the headline bracket rates. Note that the EFKA monthly ceiling (7,761.94 EUR per month in 2026) does not limit the deduction here as average monthly gross is below the ceiling. Always verify your own calculation with AADE or a qualified accountant.
Filing the annual tax return with AADE
Greek employees must file an annual income tax return (E1 form) with AADE even if income tax has been withheld at source by the employer throughout the year. The return reconciles amounts withheld against the final liability. Filing is done electronically through the AADE portal (TAXISnet). The deadline is typically in late June or July of the following year, though AADE can extend this -- confirm the exact deadline on the AADE website each year. Income tax withheld by the employer during the year does not automatically settle the return. If the annual calculation shows additional tax due, payment is made to AADE directly, often in instalments. If amounts withheld exceed the final liability, AADE issues a refund. Additional income sources -- rental income, investment income, foreign income -- must also be declared on the E1 return, and each category may be subject to different tax treatment. For complex situations, a qualified Greek accountant (logistis) or tax adviser can prepare and file the return on your behalf. Always verify filing deadlines, forms and procedures on the AADE website or with a qualified professional.
FAQ
What income tax rate applies to a 30,000 EUR gross salary in Greece in 2026?
For a single employee with 30,000 EUR gross annual salary, first deduct employee EFKA contributions: 13.37% x 30,000 = 4,011 EUR, giving taxable income of approximately 25,989 EUR. Bracket tax: 9% x 10,000 = 900, plus 20% x 10,000 = 2,000, plus 26% x 5,989 = 1,557.14; gross bracket tax approximately 4,457.14 EUR. Meiosi forou: 777 minus 20 x (25,989 minus 12,000) / 1,000 = 777 minus 279.78 = 497.22 EUR. Income tax approximately 3,959.92 EUR. This is an illustration -- verify with AADE or a qualified professional.
How does the meiosi forou tax reduction taper as income rises?
The meiosi forou starts at 777 EUR for a single taxpayer with no children and is reduced by 20 EUR for each 1,000 EUR of taxable income above 12,000 EUR. At taxable income of 12,000 EUR the full 777 EUR applies. At 20,000 EUR taxable income the reduction is 777 minus (8 x 20) = 617 EUR. It reaches zero at approximately 50,850 EUR of taxable income, after which no reduction applies. For taxpayers with children, the base reduction is higher. Confirm the exact formula and any dependant-related amounts with AADE.
Do taxpayers under 30 or with children pay income tax differently in Greece?
Yes. Law 5246/2025 provides reduced tax scales for taxpayers under 30 years of age and for taxpayers with dependent children. The meiosi forou is also higher for taxpayers with children than the base 777 EUR. These provisions are qualitative -- the exact impact depends on your specific circumstances and the number of qualifying dependants. If you are under 30 or have children, ask AADE or a qualified accountant whether a reduced scale or higher meiosi forou applies to your return.
Does an employee need to file an annual tax return in Greece even if tax was withheld at source?
Yes. Greek employees must file an annual E1 income tax return with AADE even when income tax has been withheld monthly by the employer. The return reconciles withheld amounts with the final liability. Any balance due is payable to AADE; any excess withheld is refunded. Additional income sources such as rental or investment income must also be declared. File electronically through the AADE TAXISnet portal and confirm the annual deadline on the AADE website each year.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.