DECO PROteste warned that the increase in net salary resulting from the recent reduction in withholding taxes does not necessarily equal a reduction in the final income tax. The consumer defense organization explained that this decrease only means that taxpayers pay a smaller portion of their income to the State in advance, with the final amount only being calculated when settling accounts with the Tax Authority in 2027.
Depending on each household's specific situation, this monthly tax relief could result in a substantially smaller refund than expected or even the obligation to pay an additional amount to the State. The organization warned that this is not a new situation, as over the past two years, successive changes to withholding tax tables have already led many citizens to receive smaller refunds than usual, while others now have tax owed to pay.
Given the pressure from essential expenses on housing, car, and food basket, DECO PROteste recommends that families use any financial margin to save part of the extra monthly income to cover any surprises in the next tax settlement. The organization highlighted that this recent experience should serve as a reference for anticipating the impact on the 2027 tax returns.
The warning comes at a time when several taxpayers are still regularizing their income tax for the previous year's earnings, reminding readers that the deadline to request installment payments from the Tax Authority expires the day after this news was published.
