A reduction in the IRS approved in parliament last Friday will allow a single worker without children, earning a salary of 1,000 euros, to pay 34 euros less in annual tax compared to the current IRS table, PwC simulations reveal.
The law proposal, approved in general terms, introduces a broad cut in IRS payable this year across all income brackets.
Even though rates only decrease up to the eighth tier, the relief extends to the ninth due to the progressive calculation of the tax.
PWC’s simulations illustrate the reduction in two scenarios: compared to the current IRS table and the 2024 IRS table.
There is a decrease in IRS across various salary levels, including gross salaries of 950, 1,000, 1,100, 1,250, or 1,500 euros, as well as 2,000, 3,000, or 4,500 euros, and incomes of 6,000 or 7,000 euros gross per month.
The calculation concerning a taxpayer with a 1,000-euro salary pertains to a single worker without children in the second income bracket.
Though the additional gain is 34 euros, the difference compared to last year’s IRS is 264 euros because the 2025 State Budget already involved adjustments in the brackets and an update of the minimum existence rule, resulting in tax relief from 2024 to 2025. This new reduction of 34 euros adds to the already secured 230-euro annual reduction.
The situation is similar for a childless couple, with each earning 1,000 euros gross per month. The couple’s additional IRS reduction will be 67 euros annually. The same occurs if IRS is simulated for two married workers with two children. The total tax reduction compared to 2024 is 527 euros for both couples.
Still in the second income bracket, a simulation for a single, childless taxpayer earning 1,100 euros gross monthly shows an additional decrease of 55 euros. The final difference compared to last year’s IRS will be 86 euros.
In the third tier, where, for example, taxpayers with salaries of 1,250 euros and 1,500 euros gross reside, the additional savings will be 65 euros and 83 euros, respectively. Compared to the 2024 IRS, the difference is 132 and 155 euros, respectively.
In the fourth bracket, a 1,850-euro gross salary benefits from an additional decrease of 111 euros, with an annual savings of 220 euros (adding this cut to the previously secured 109 euros).
In the fifth level, a 2,000-euro salary, also for a single taxpayer without children, receives an additional IRS reduction of 124 euros, while the total savings against 2024 rises to 293 euros.
In the sixth bracket, a 3,000-euro salary results in 207 euros less paid compared to the current IRS table. Consequently, the annual savings increase to 385 euros.
In the seventh tier, a 3,500-euro salary achieves an additional decrease of 240 euros, which, combined with the previous savings, results in a total tax reduction of 574 euros relative to 2024.
For those in the eighth tier, the last where there is a nominal rate cut, the additional savings for someone earning 4,500 euros per month is 290 euros in annual IRS, with an accumulated difference of 645 euros compared to 2024.
In the ninth tier, the top of the table, those earning 7,000 euros gross monthly can achieve an additional IRS decrease of 401 euros, marking a tax cut from last year of 866 euros.
These calculations pertain to simple standard situations. The actual IRS calculation is influenced by specific factors of each taxpayer, notably deduction values.
PwC assumes that taxpayers have no additional deductible expenses beyond general and family expenses.
