Starting from 2026, the general tax-free income is 700 euros per month, or up to 8400 euros per year. Unlike previous years, the general tax-free income no longer decreases as a person’s income grows. Regardless of income level, the maximum annual tax-free amount is 8400 euros.
Only one employer or payer can apply the tax-free income based on the employee’s written request (Income Tax Act § 42 section 2). If a person works for several employers, they may submit the request to only one of them. The employee may choose which employer applies the tax-free income. If no written request is submitted, the employer withholds income tax from the first euro.
The maximum amount of tax-free income that can be used in a calendar month is 700 euros. An employee may request the full 700 euros or choose a smaller amount, for example 500 euros. The employer must follow the amount stated in the employee’s written request.
If the employee does not wish to use the tax-free income, they can either refrain from submitting the request or submit a request specifying zero euros.
Although the tax-free income system changes significantly in 2026, all previously submitted requests remain valid in the amount indicated. For example, if the employer has received a request for 654 euros and the employee does not submit a new one, the employer may apply tax-free income only up to 654 euros.
If the employee wants to change the amount (for example, increase it to 700 euros), they must submit a new request. If the previously submitted request states that the employer should apply the “statutory tax-free amount according to the employee’s income”, the employer may apply up to 700 euros from 2026 without requiring a new request.
Since tax-free income no longer depends on annual earnings, people with variable salaries do not need to submit monthly updates. From 2026, the general tax-free amount is 700 euros per month / 8400 euros per year and does not decrease with higher income. If the employee has requested 700 euros but earns less in a particular month, the payer can apply tax-free income only up to the amount of that month’s payment.