Taxpayers in Cyprus can now calculate exactly how much they will save under the 2026 tax reform through a new online tool launched by the Tax Department on Wednesday that compares their liability under the old and new systems.
The calculator, which simulates a tax return, allows users to work out their income tax amount, eligible deductions and resulting benefit based on family income and composition. The tool displays both what taxpayers will pay under the reformed system and what they would have paid under the previous regime, providing a direct comparison.
The Tax Department released the calculator hours after publishing the tax deduction claim form (T.F. 59) and explanatory guide. It is available in the “Tax Reform 2026” section on the department’s website.
Taxpayers must complete the deduction claim form so their employers’ payroll departments can apply the changes—including the increased tax-free threshold, modified tax brackets and enhanced deductions—to this month’s salary.
The calculator opens with five sections covering family details, income sources and various deductions. Users select their family composition—single person, family or single-parent family—then enter details including number of children, gross family income, salary, pensions, rental income and other taxable earnings. Those who received a first employment tax deduction must also declare this.
Subsequent sections cover allowances such as trade union subscriptions and charitable donations, followed by insurance and pension contributions to social insurance, the national health system, provident funds and life insurance schemes, all capped at one-fifth of eligible amounts. The tool automatically calculates child allowances whilst users add rent and mortgage interest payments, as well as green investments in their main residence.
Once users complete all fields, the calculator displays their annual benefit from the reform at the top of the page. A summary table shows total taxable income, deductions, tax credits and the resulting income tax under the modified brackets.
Users can also select a “before tax reform” option to see their liability under the previous system, allowing them to compare results and calculate their precise savings.
The reform increased the tax-free threshold to €22,000 and modified tax bracket rates. Deductions now stand at €1,000 for the first child or student, €1,250 for a second child, and €15,000 for three or more children. Rent and mortgage interest deductions reach €2,000, whilst green investment deductions total €1,000.
Eligibility for additional tax credits depends on family income. Families with one or two children qualify with income up to €100,000, those with three or four children up to €150,000, and families with five or more children up to €200,000. Under the reform, all taxpayers aged 25 to 71 must file a tax return regardless of income level.
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