Tax reduction for children in Greece: what each child saves in 2026
In Greece, dependent children lower income tax twice over: through cheaper rates in the middle of the scale and through a bigger employee tax reduction.
Checked by Radif Partners · Editorial policy
Under the 2026 rules, every dependent child lowers the rates of the second and third bands of the Greek income tax scale. The second band (€10,000 to €20,000) drops from 20 % to 18 % with one child, 16 % with two and 9 % with three; with four or more, the first two bands are not taxed at all. The third band, up to €30,000, falls to 24 %, 22 %, 20 % and 18 %, and by another 2 % for each child after the fourth. On top of that, the article 16 tax reduction rises from €777 to €900, €1,120, €1,340, €1,580 and €1,780. For a family with one earner on €2,200 gross a month, two children cut annual tax from €4,154 to €3,144. The calculator below shows what your own children change.
What each child changes in your tax
Less tax per year
€816
| Net with the children | €1,418 |
| Net without children | €1,360 |
| 2nd / 3rd bracket rates | 16 % / 22 % |
Rates, reduction and annual tax for 0 to 6 children
| Children | 2nd band | 3rd band | Full reduction | Tax on €1,300 | Tax on €2,200 | Tax on €3,200 |
|---|---|---|---|---|---|---|
| 0 | 20 % | 26 % | €777 | €1,352 | €4,154 | €8,255 |
| 1 | 18 % | 24 % | €900 | €1,113 | €3,697 | €7,732 |
| 2 | 16 % | 22 % | €1,120 | €778 | €3,144 | €7,112 |
| 3 | 9 % | 20 % | €1,340 | €154 | €2,090 | €5,992 |
| 4 | 0 % | 18 % | €1,580 | €0 | €0 | €3,752 |
| 5 | 0 % | 16 % | €1,780 | €0 | €0 | €2,815 |
| 6 | 0 % | 14 % | €2,000 | €0 | €0 | €2,395 |
Tax figures are annual, for one earner over 30 paid fourteen times a year at the monthly gross shown, after e-EFKA social security. The “full reduction” column is the article 16 amount before the income taper. Notice how the lowest salary reaches zero tax with two children, while the highest still pays tax with six: much of that income sits above €30,000, where children no longer change the rate.
Where the saving comes from
For the one-earner family on €2,200 a month, the two children save €1,010 a year. Of that, €667 comes from the lower rates in the second and third bands, and €343 from a larger tax reduction. Until 2025 Greece used a single scale for everyone and children only counted through the reduction. The split matters because the reduction shrinks as income rises, while the rate cut is worth the same in euros to anyone whose income fills the two bands.
The result is that there is no fixed “allowance per child”. At €2,200 a month, the first child is worth €457 a year, the second €554, the third €1,054 and the fourth €2,090. The third child stands out because it brings the second band down to 9 %, the same as the first band; the fourth is bigger still, because it removes tax on the first €20,000 altogether.
What the next child saves in tax
Less tax per year
€505
| Annual tax today | €3,067 |
| With one more child | €2,562 |
| 1st / 2nd / 3rd bracket rates | 9 % / 16 % / 22 % |
Who counts as a dependent child
Article 11 of the Income Tax Code sets the conditions. A child counts if unmarried and under 18, or aged up to 25 while studying at a school, university or vocational institute in Greece or abroad, registered as unemployed with DYPA (the public employment service, formerly OAED) or doing military service. Children with a disability of at least 67 % count at any age if unmarried, divorced or widowed.
A child who earns money can stop counting. If the child lives with you and their own taxable income for the year goes above €3,000, they are no longer your dependant. Child maintenance paid under a court order or notarial deed is ignored for this test. A student with a well-paid summer job can therefore change the parents’ tax bill for the whole year.
When the eldest stops counting
The same rules work in reverse, and families are often caught out. A parent of three on €2,600 gross a month pays €3,372 a year. When the eldest turns 25, or finishes studying without registering as unemployed, the child no longer counts and the parent is taxed as a parent of two: €4,492. Most of the €1,120 increase comes from the second band, which goes back up from 9 % to 16 %, with a smaller part from a lower tax reduction.
It is worth planning for, especially if a child’s studies end during the year. Updating payroll keeps the monthly withholding in line with what the annual return will show.
Telling payroll about your children
Your employer can only apply the child rates if it knows about the children. New arrivals often skip this step during onboarding, and the payroll then withholds as if the employee had none. The annual return corrects the total, but the overpayment sits with the tax office for months. The page on payroll tax withholding shows the size of that gap. The same applies in reverse: when a child turns 25 or finishes studying, tell payroll, or the return will show tax to pay.
For the exact effect on your payslip, enter your gross and your number of children in the main salary calculator. The full scale, with the bands for every number of children, is on the page about income tax brackets.