Parliament approves the third package of consolidation measures

What is changing from 2026?

1. Increase in the progressivity of the personal income tax

New progressive personal income tax rates of 30 % and 35 % are introduced, depending on certain multiples of the subsistence minimum.

The four personal income tax rates for 2026 will be as follows:

• Up to a tax base of EUR 43 983,32: the rate will remain at 19 % (corresponding to a monthly gross salary of up to EUR 4,282)
• Above EUR 43 983,32: 25 % rate (monthly gross salary from EUR 4,282 to EUR 5,875)
• Above EUR 60 349,21: rate of 30 % (monthly gross salary from EUR 5 875 to EUR 7 302)
• Above EUR 75 010, 32: rate of 35 % (monthly gross salary above EUR 7 302)

A special regime will apply to constitutional officials and MPs, whose tax rates will be increased from 5 % to 10 %.

The higher rate applies only to the part of the tax base that exceeds the threshold, not to the entire tax base. Each band of the tax base is therefore taxed separately at the appropriate rate.

2. New tax band for the largest companies

The new corporate minimum tax band should only affect companies with taxable income above EUR 5 million. From the current EUR 3,840, the tax licence will increase to EUR 11,520.

3. Increase in the special levy rate for collective investment

This measure applies to investment companies, management companies as well as pension management companies (DSS) and supplementary pension companies (DDS). The basic rate of the special levy for these companies is significantly increased from the previous 4.36 % to 15 %.

4. Changes for self-employed persons - Higher assessment base and increase in health levies

As of the new year, the minimum assessment base for the payment of contributions increases from the current 50 % to 60 % of the average wage two years ago. This change means that self-employed persons will have to pay higher minimum contributions to social and health insurance companies.

Another change, which will be effective from 2026, is an increase in the health levy by 1 %. The higher rate will apply not only to the self-employed but also to employees and self-payers.

These changes will thus affect a wide range of workers, with the most significant impact on the self-employed, who until now have paid contributions on a lower base.

There has also been a change in the area of levy holidays for the self-employed. Whereas previously newly established self-employed persons did not have to pay social contributions for the first 12 months of their business, this period would now be reduced to 6 months.

The obligation to pay social contributions would start on the first day of the sixth calendar month after the establishment of the business. The aim of this amendment is to reduce the incentive to set up trades on purpose and to avoid paying social security contributions. From the sixth month of establishment, the minimum social contributions of EUR 131.34 (corresponding to an assessment base of 26 % of the average wage) will be compulsory.

5. Changes to income tax during sick leave, maternity leave and sick pay

Currently, no insurance contributions are payable on remuneration received by an employee during sick leave, maternity leave or nursing leave. The procedure for paying insurance contributions is to be aligned with the taxation of income. This means that remuneration paid during sick leave, maternity leave or nursing leave will be subject to insurance premiums in the same way as other income. The aim of this change is to make the system fairer and to reduce the scope for purposeful optimisation of levies.

6. Increased VAT on selected foodstuffs and introduction of reimbursement from primary materials

Foodstuffs with increased sugar and salt content will be subject to VAT at 23 % instead of the current 19 %. These include:

• sweets such as chocolate, candy, biscuits or candied fruit;
• ice cream;
• jams;
• sweetened soft drinks such as syrups, raspberry syrups or energy drinks;
• savoury items such as crisps or bars.

The VAT increase will not apply to sugar and salt alone, baby food, children's meals, dairy drinks, yoghurt, 100 % sugar-free juices and special foods for diabetics.

A new reimbursement for companies extracting primary materials has also been introduced. Companies extracting gravel, sand, stone or crushed rock must prepare for a new reimbursement of EUR 1.35 per tonne extracted.

7. Increased taxation of gambling and non-life insurance

From 2026, the levy for online gaming will increase from 27 % to 30 %, as well as higher taxation on brick-and-mortar establishments, with casinos taxed at a higher rate than the current 14.3 % and gambling establishments at a higher rate than the current 16.9 %.

In addition, the insurance tax on non-life insurance has also been increased from 8 % to 10 %.

8. General tax pardon

From January 1, 2026 to June 30, 2026, taxpayers should be able to pay their tax arrears or additionally declare tax through their tax return without being assessed a penalty or penalty interest for late payment or failure to declare tax against the tax and customs authorities.

The measure should apply to the following taxes:

• Income tax,
• value added tax (VAT),
• excise duties,
• motor vehicle tax,
• insurance tax.

On the contrary, it should not apply:

• advance tax payments,
• tax instalments,
• special levy on business in regulated sectors,
• solidarity contribution,
• local taxes and charges.

9. Limitation of VAT deduction for cars

From 2026, the rules for deducting VAT on company cars will also change. It will now only be possible to deduct 50 % of VAT if the vehicle is used also for non-business purposes. This restriction applies not only to the purchase of the car itself, but also to all costs associated with its operation - maintenance, servicing, fuel, repairs or spare parts. For more information on the limitation of VAT deduction for cars, see our previous articles: Reduction of VAT deduction for passenger cars from 2026 a reality | KPMG Slovensko Ministry of Finance plans to decrease the right for input VAT deduction on motor vehicles to half | KPMG Slovensko