Tax allocation to parents: 2026 update, key deadlines and conditions (31.3.2026)

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As of 2026, this represents a significant change. For the first time, taxpayers can allocate a share of their paid tax to both of their parents. At the same time, the option to allocate a percentage to non-profit organisations remains unchanged.
 

How much can you allocate?

• 2% of paid tax to one parent,

• 2% of paid tax to the other parent,

• simultaneously, 2% (or 3%) to a non-profit organisation.

In total, a taxpayer can allocate up to 6% (or 7%) of their paid tax.

 

How to allocate the tax share?

• Directly in the tax return filed by 31st March 2026 (or within an extended deadline).

• Via a separate form “Statement on the Allocation of the Share of Paid Personal Income Tax” by 30th April 2026, if your employer performed the annual tax settlement

A mandatory attachment is the confirmation of paid tax issued by the employer, provided upon request in the annual settlement application. The statement must also include identification details of the parent(s).

 

Eligibility criteria for parents

As of 31st December 2025, the parent must be a recipient of an old-age pension, disability pension, service pension, or a disability service pension after reaching retirement age.

Since the Social Insurance Agency may grant pensions retroactively, it is possible to include a parent who had not yet been receiving a pension by that date but had already met the eligibility conditions and is expected to have the pension granted retrospectively as of 31st December 2025.

 

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Conditions for the taxpayer

• The taxpayer must not have tax arrears exceeding €5 within 15 days after the tax return deadline.

• If the annual settlement was performed by the employer, the resulting tax must be properly settled by 30th April 2026.

• If the taxpayer was placed in foster care during the relevant year, a decision of the competent authority must be attached to the statement (this is not required in subsequent years).

• If the taxpayer is the biological or adopted child of the parent, no proof of this relationship is required.

The Financial Directorate will provide the necessary data to the Social Insurance Agency, which will subsequently distribute the allocated tax share using the same method as pension payments.

 

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