The government has introduced new income tax brackets for 2027, adjusted to account for inflation based on the 2026 consumer price index, as detailed in the Finance Bill 2027. These changes aim to ensure that individuals whose wages rise in line with inflation do not face a higher tax burden automatically. The tax rates themselves remain the same—0%, 11%, 30%, 41%, and 45%—but the income thresholds for each bracket have been increased by about 2.1%. These new thresholds apply to income earned in 2026 and will be declared in the spring of 2027. The updated brackets are as follows: 0% up to 11,844 euros, 11% from 11,845 to 30,200 euros, 30% from 30,201 to 86,353 euros, 41% from 86,354 to 185,737 euros, and 45% on income above 185,737 euros. For individuals whose wages increased by 2% to match inflation, the higher tax brackets would not apply to their entire income, keeping their real income unchanged. Employees who did not receive a raise in 2026 could benefit from the higher thresholds, as a larger portion of their income would fall into lower or zero tax brackets. A single, childless worker earning a median private sector salary would likely see a reduction in their tax liability. Similarly, those whose income grew slower than the new thresholds may also see a decrease in the amount of tax owed. Conversely, individuals whose income increased at the same rate as the tax brackets would see no change in their tax liability, while those with significantly higher income growth could face an increase in taxes. These adjustments will be reflected in tax refunds or additional payments after the 2026 income declarations are processed in the spring of 2027. Refunds are typically issued in late July or early August and are automatically deposited into the taxpayer's bank account. In the previous year, 12.6 million tax households received refunds averaging 1,057 euros, while 13.8 million households had to pay an additional 1,798 euros on average. The changes to the tax brackets are part of the government's broader strategy to manage public finances and generate several tens of billions of euros in additional revenue.