Government Launches Tax Cut Calculator Website

The government has launched a tax cut calculator website, to help parents calculate how many tax cuts they will be eligble for.

This was launched during the announcement of Budget 2026 by Finance Minister Clyde Caruana, which revealed that families with children are set to benefit from a new tax cut worth €160 million, to be introduced over three Budgets.

The measure aims to reduce financial pressures on working parents and provide support to families raising children. It will apply to married couples and parents with children under 18, or up to 23 if they remain in full-time education.

Two new tax computation categories will be introduced: one for families with a single child and another for those with two or more children.

For married couples with one child, the tax-free income threshold will rise from €15,000 to €22,500 over three years. Around 2,400 families are expected to benefit, saving an estimated €2,175 by the end of the third year. Over a 23-year period, combining last year’s tax cut with the new measures, families in this group could see their tax burden reduced by up to €65,000.

Parents with one child will see their non-taxable income increase from €13,000 to €18,000, benefiting approximately 23,750 parents and saving up to €3,600 each. Over 23 years, this could reduce their tax burden by just under €113,000.

Larger families will receive the greatest relief. Married couples with two or more children will have their tax-free threshold rise from €15,000 to €37,000, saving up to €6,000 annually. Parents with two or more children will see their threshold increase from €13,000 to €30,000, potentially saving €10,000 per year. Over 25 years, married couples in this category could reduce their tax burden by more than €150,000, while parents with both working could save up to €257,000.

By the end of the three-year rollout, €160 million will remain in families’ pockets.

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