Greece is on track to deliver significant tax cuts in 2026, as strong revenue performance in 2025 creates unexpected fiscal space. According to the Ministry of National Economy and Finance, tax collections in the first four months of the year reached €22.1 billion—exceeding government targets by €1.455 billion. If this momentum continues, total annual revenue could surpass €72 billion, well above the original estimate of €69.4 billion. This strong fiscal showing is fueling optimism within the government that it will be able to ease the country’s tax burden next year.
The Greek government is preparing a package of tax reforms aimed at providing relief across the income spectrum, with a particular focus on the middle class and those facing steep tax rates due to modest income increases. Officials say the measures are contingent on the continued positive trajectory of the economy and the confirmation of budget surpluses, but planning is already underway for potential implementation in 2026.
A key element of the plan is the introduction of a new 15% income tax bracket for annual earnings between €10,001 and €20,000. Currently, individuals in this range see their income jump from a 9% tax rate directly to 22%, resulting in a disproportionate tax hike. The proposed reform aims to smooth this transition, offering relief to a broad segment of wage earners and the self-employed.
In addition to changes in income tax brackets, the government is reviewing the top marginal tax rate of 44%, which currently applies to higher-income earners. While this rate targets the wealthiest taxpayers, officials argue that many individuals fall into this bracket due to inflationary income increases, not actual gains in purchasing power. Adjusting the threshold or the rate itself could prevent these individuals from being penalized by what some view as an outdated structure.
The government is also looking to ease the tax burden on small property owners. One proposal under serious consideration would reduce the minimum tax rate on rental income from 15% to 5% for the first €5,000. This would benefit landlords with modest earnings, especially in lower-yield housing markets where tax obligations often outweigh rental returns.
