Personal allowance

What the personal allowance is

The personal allowance is the slice of income on which no tax is paid. Before income tax is charged, the personal allowance is subtracted from income (gross pay less pension contributions); what remains is the tax base. The larger the personal allowance, the smaller the tax base, the lower the tax — and the higher the net.

The basic allowance and coefficients

Every employee has a basic personal allowance of 600,00 € per month. That amount is increased by coefficients for dependent family members, children and disability: the coefficient is multiplied by the basic allowance and added to the monthly allowance.

The child coefficients rise with the child’s order — each further child brings a larger allowance than the one before. Separate coefficients apply for a dependent member and for disability. The exact values and monthly amounts, on the 2026 rates, are shown in the table below.

Who counts as a dependent member

A family member is recognised as a dependent only if their annual income does not exceed 3.600,00 € (six times the basic allowance). If a dependent earns more than that during the year, the allowance for them ends. So the personal allowance is not permanently fixed — it depends on family circumstances that can change through the year.

A note on the 4th and further child coefficients

The basic allowance, the coefficient for a dependent member, for the first, second and third child, and for disability come from a direct quote in the source. The coefficients for the fourth and further child come from a source without such a direct quote, so check the sequence for larger families with the Tax Administration.