Basic allowance

You can be given the basic allowance that reduces your taxable income such as wages and pensions. The allowance concerns both state taxes and municipal taxes. The basic allowance affects your earned income subject to tax. 

The size of the allowance in 2025:

• The maximum deduction resulting from the basic allowance is €4,115.
• If your net taxable earned income exceeds €4,115 after all the deductions applied in municipal taxation have been made, the deduction is reduced by 18% of the excess.
• You are not entitled even to a partial deduction if your net taxable earned income after all the above deductions exceeds €26,976. 

The size of the allowance in 2024:

• The maximum deduction resulting from the basic allowance is €3,980.
• If your net taxable earned income exceeds €3,980 after all the deductions applied in municipal taxation have been made, the deduction is reduced by 18% of the excess.
• You are not entitled even to a partial deduction if your net taxable earned income after all the above deductions exceeds €26,092.