The Cyprus Tax Department introduced a new online tool for calculating income tax, developed with the large-scale tax reform in mind. The service is already available on the agency's official website and is intended for both employees and self-employed and family taxpayers. Its launch became part of the digitalization of the tax system and preparation for applying updated rates and deductions, which came into force in 2026.
The calculator allows you, in just a few steps, to determine the amount of tax payable, take available benefits into account, and immediately see how the tax burden will change compared to the previous rules. In this way, the authorities emphasize transparency and a clear demonstration of the advantages of the new taxation model.
How the calculation works with the reform taken into account
When choosing the calculation mode under the new system, the user is asked to enter key data, including family composition and the presence of dependents, as well as total income—both personal and family. Next, information about pensions, rental receipts, taxable and tax-exempt income is entered. Special attention is given to taxpayers who previously used the allowance for the first place of employment: such deductions must also be declared.
The system automatically processes the entered data and adapts the calculation to the new parameters of the reform, emphasizing family coefficients and expanded tax reliefs.
Accounting for allowances, deductions, and social contributions
The calculator includes sections dedicated to various types of tax deductions. The user can take into account union dues, donations to charitable organizations, housing rent expenses, insurance policies, and mandatory contributions to the GeSY healthcare system. Child benefits are accounted for separately, which is especially important for families with several dependents.
The service also allows you to include in the calculation interest on mortgage loans and rent payments, and in the case of a primary residence—investments in “green” real estate that meets environmental standards. This reflects Cyprus's overall course toward supporting sustainable construction and energy-efficient housing.
Comparison of taxes before and after the changes
One of the calculator's key functions is the ability to instantly compare the tax burden under the old and new systems. After filling in all the data, the user sees the projected annual benefit from the reform, as well as a summary calculation that includes total taxable income, applied deductions, and the final amount of income tax.
When choosing the calculation mode under the previous rules, a simplified interface opens, where income and standard deductions for insurance and pension schemes are taken into account. This makes it possible to clearly assess the difference between the two models and understand exactly how the reform affects personal finances.
What this means for taxpayers
The launch of the new calculator coincides with an active phase of preparation for the full implementation of the tax reform, which, according to the Ministry of Finance, is aimed at reducing the burden on the middle class, supporting families, and increasing the competitiveness of the economy. It is expected that the tool will be regularly updated as the rules are refined and will become the main reference point for filing returns in the coming years.
For taxpayers, this means more transparency, fewer calculation errors, and the ability to plan obligations in advance without resorting to complex manual computations or costly consultations.