Slovakia’s third consolidation package: higher taxes, new rates and other changes from 2026

Increase in personal income tax

New rates of 30 percent and 35 percent are being introduced to Slovak personal income tax, expanding the number of rates from two to four:

• Up to a tax base of EUR 44,000: the rate remains at 19% (corresponding to a gross monthly wage of up to EUR 4,282) 
• Above EUR 44,000: 25% rate (gross monthly wage from EUR 4,282 to EUR 5,875)
• Above EUR 60,000: 30% rate (gross monthly wage from EUR 5,875 to EUR 7,302)
• Above EUR 75,000: 35% rate (gross monthly wage above EUR 7,302)

Further consolidation measures

• increase in the tax rate for constitutional officials and members of parliament under a special regime from 5 percent to 10 percent
• introduction of a new minimum corporate income tax bracket for companies with taxable income above EUR 5 million
• increase in the special levy rate for collective investment from 4.36 percent to 15 percent
• introduction of a higher assessment base for self-employed persons for mandatory insurance contributions.
• introduction of insurance contributions paid on income during incapacity for work, maternity leave, and carer’s allowance
• increase in VAT on selected foods from 19 percent to 23 percent
• increased taxation on gambling and non-life insurance
• general tax amnesty from 1 January to 30 June 2026, during which taxpayers will have the opportunity to pay their tax arrears or declare additional tax without being assessed a penalty or default interest
• restrictions on VAT deductions for company vehicles used also for other than business purposes

More information is available on KPMG Slovakia’s website.