More money in the pocket for young people under 30, and more advantageous for businesses to hire young workers, will result from a change in the tax income, based on the age of the taxpayer.

From 1 January 2026, young people under 25 will earn tax-free €22,204, instead of the current €8,636. If they also have children, this increases to 22,846 euros with one child, 24,000 with two children, or 25,364 with three children, etc.

For example, a young 25-year-old who works in the catering industry and receives a net monthly salary of 1,250 euros per month will have a tax cut of 2,480 euros, which is equivalent to almost two salaries.

Taxpayers aged 26-30 also benefit significantly, with a reduction in tax deductions starting at 130 euros per year for those receiving the basic salary, rising to 1,300 euros if the salary reaches 1,450 euros net (i.e. 20,000 euros income per year) or much more as their income increases. This also provides an incentive for some to seek a second job, and it also favours companies to hire or give raises to new employees, since the government will not collect taxes on these extra amounts given to employees, giving a greater boost to the first steps towards youth employment.

Based on this year’s tax returns (income 2024), 260,000 young people up to 30 years old declare more than 10,000 euros – above the tax-free amount. Of these, up to 25 years old are 70,000. The number increases, however, as wages and employment increase. And this year’s figures, moreover, already show a significant increase in these numbers compared to last year.