Tax-Free Minimum

What the non-taxable minimum means

The non-taxable minimum is a fixed amount defined by the state: 510 EUR per month (from January 1, 2025).

This part of the income is not taxed with IIN, and tax is calculated only on the remaining amount.

Key features of 2025:

• the same amount for all employees;
• does not depend on salary, age, profession or other conditions;
• applied automatically by the employer in salary calculations.

This significantly simplified the tax system, as previously the amount of the non-taxable minimum depended on income.

Where the non-taxable minimum is used

The non-taxable minimum plays a role in several financial processes:

• in salary calculations — it affects the net monthly amount received;
• in the annual tax return — helps verify the applied minimum and adjust the tax amount;
• when applying for tax benefits — used together with other deductions;
• in banking calculations — influences creditworthiness evaluation;
• in financial planning — helps determine real income of a person or family.

Example of applying the non-taxable minimum (2025)

For example, the gross salary is 1200 EUR. Non-taxable minimum: 510 EUR.

The taxable base is calculated as follows:

1200 (gross) – 510 (non-taxable minimum) = 690 EUR (taxable base)

It is from these 690 EUR that IIN will be deducted.

If the non-taxable minimum were not applied, tax would be calculated from the full amount, and the net salary would be lower.

How the non-taxable minimum affects income

Thanks to the fixed amount of 510 EUR in 2025:

• the taxable base decreases,
• the amount of IIN decreases,
• net salary increases,
• income calculation and forecasting becomes simpler.

The easiest way to calculate tax and salary

To see exactly how the non-taxable minimum affects your salary, the most convenient way is to use the salary calculator on this website — it will automatically:

• apply the 510 EUR non-taxable minimum in 2025,
• take dependents into account,
• consider benefits, tax rates and social contributions,
• show the final net salary.