Many heard about it, few perhaps understood the “new” Pierrakakis reform: almost all young people up to 25 years old will remain fully tax-exempt, even if they are already working.

Never before has there been an age criterion in the tax scale. From January 1, 2026, the new scale will now be divided into young people up to 25, young people up to 30, and… everyone else.

What is the immediate benefit “in the pocket”?
For the next 5–10 years of their lives, up to €20,000, almost no young person aged 15 to 25 will pay tax (97%, to be precise, based on AADE data on 2023 incomes).

This is not just a discount for young people. It is a “bonus” to encourage 18-, 20- or 22-year-olds to enter the labor market without being burdened by the debts previous generations created. And, above all, to save, if possible, income that would otherwise go straight to the tax office.

Examples:

• A young person starting work at 18 as an employee earning €11,000 annually (€785 net/month × 14 payments) saves €343 a year in taxes. At 20, earning €12,000 (€860 net/month × 14), they save €563 annually. At 22, earning €13,000 (€928 net/month × 14), they save €803 annually. By 25, they will have saved €4,221 in total.
• If the same young worker continues in the same job, with salary increases, reaching €15,000 annually between ages 26 and 30, they will save an extra €650 per year, totaling €3,250 in five years, or nearly €7,500 by age 30.
• Another young person, 22 years old, working two jobs (full-time plus part-time delivery) earns €15,000 annually from wages and tips (€1,070/month). By 25, they will have saved €5,132 (4 years × €1,283) and another €3,250 between 26–30, for a total of €8,380.
• Similarly, a young professional earning their first €10,000 will not pay the €900 annual tax. Over eight years (18–25), they automatically save €7,200.

An end to the (traumatic) “first time” at the tax office

The indirect benefit of this relief is that it helps young people aged 18–22 start their careers without the “bogeyman” of the tax office. From 1.1.2026, and for the following 5–10 years, the state will “build” a new relationship between taxpayers under 30 and the tax authorities. It may even “educate” the new generation not to feel like a tax burden from birth, forced to pay exorbitant taxes through imputed (“objective”) criteria and advance taxes before they even earn their first money.

Designed to give relief to those under 30, the reform will also put behind them the “traumatic” experiences of students who paid taxes due to imputed criteria—simply because they had interest from a joint account with their parents, or because their parents gave them their first car. They will also escape the shocking tax bills some faced for earning “pocket money” in seasonal work, or from tips exceeding €300/month. The new system allows young people to study and start their careers without tax anxiety.

These old “burdens” also led some older taxpayers into tax evasion. The classic excuse for those caught evading? “They’ve squeezed us dry; they don’t let us work.” That feeling often stemmed from being suddenly hit with huge tax bills in their youth, a trauma they later avoided by hiding income.

This excuse now becomes much weaker. It could even lead to more sectors “going white” where the black economy thrives. The first step was the tax exemption of €300/month in tips for young hospitality workers. From 1.1.2026, this will extend to seasonal workers earning up to €5,000/month, as long as they are under 25 and earn less than €20,000 annually.

Examples:

• A 22-year-old student waitress works seasonally June–September, earning €5,000/month plus €300/month in declared tips. Her annual income of €16,200 is fully exempt under the new framework (under 25 and under €20,000/year). She is no longer at risk of imputed taxes for a cheap car or joint account interest—she makes “clean” declarations.
• A 24-year-old junior programmer earns €1,100/month with 14 salaries (€15,400/year). He remains tax-exempt until 25. His income stays intact, improving liquidity and his credit profile if he seeks a loan to invest in his skills.
• A 23-year-old freelance graphic designer invoices €12,000–14,000 annually. Under the old system, imputed living criteria could leave him taxed without real profit. Under the new exemption, he declares what he earns without being penalized.
• A 25-year-old barista earns €800/month net (14 salaries) plus €300/month in declared tips. Her annual income remains under €20,000, and tips are exempt. She now uses debit card payments and receipts openly, since she no longer fears imputed criteria.
• A 29-year-old tradesman with €22,000 annual turnover falls under the more favorable scale for under-30s. He doesn’t eliminate tax fully, but pays much less than under the old scale. It now benefits him to issue receipts rather than operate “off the books.”