Personal income tax rates are progressive . This means that the tax rate rises as incomes grow. Personal income tax is calculated on all taxable income, even if some income was received or obtained abroad.
The progressive tax rates for the following fiscal and income years are the following :
| Income brackets | Tax rates |
|---|---|
| Tax year 2023
(income year 2022) |
|
| from 0,01 € to 13.870 € | 25 % |
| from 13.870 € to 24.480 € | 40 % |
| from 24.480 € to 42.370 € | 45 % |
| above 42.370 € | 50 % |
| Tax year 2022
(income year 2021) |
|
| from 0,01 € to 13.540 € | 25 % |
| from 13.540 € to 23.900 € | 40 % |
| from 23.900 € to 41.360 € | 45 % |
| above 41.360 € | 50 % |
Some income is not taxed at these progressive rates and is taxed at separate rates (e.g. certain supplementary pension capital).
Any person subject to personal income tax is entitled to an “exempt sum”. This means that part of the taxable income is not taxed. The exempt amount amounts to 9,050 euros (financial year 2022, income 2021, against 9,270 euros for the following year). This exempt amount may increase depending on the personal situation (for example, for dependent children).
Then the tax is further reduced:
- for certain income (e.g. foreign income, pensions and replacement income, etc.);
- for certain expenses (e.g. childcare, pension savings, etc.).
