Modified Labor Ministry Decision: Alteration of NDPL for certain working parents to be revised at a 6% rate.
Got the scoop! Here's the breakdown on the upcoming family tax change coming in hot from 2026:
Officially announced by the minister, families with two or more kiddos and an average income below 1.5 times the local minimum living wage will see their income tax payments adjusted to a cool 6%, with the excess funds returned to parents. About 4.2 million families, approximately 10 million kids, stand to benefit from this adjustment, as per the minister's presentation, Anton Kotyakov.
Currently, parents fitting the bill face a 13% income tax rate. To claim the family tax benefit, these folks need to submit an application via "Gosuslugi", MFC, or the Russian Social Fund between June 1 and October 1 of the year following the reporting year. Thing to note is that the benefit isn't renewed automatically—it requires annual confirmation. Deputy Alexei Govyrin (United Russia) clarified the details in a chat with "RIA Novosti". He noted that adoptive and foster parents get to join in on the action too.
Hey, check out more news in our awesome Telegram channel @expert_mag
- #MinistryOfLabor
- #Taxes
- #IncomeTax
- #Family
Now, here's the breakdown on who's eligible for this tax windfall and why:
- Who Qualifies: Families with two or more kids under 18 (or younger if studying full-time) who don't rake in more than 1.5 times the regional living wage per person. Possessions like houses and cars are factored into the assessment, and applicants must be clear of any outstanding child support debts.
- How It Works: Families that fit the bill can grab a refund fixed at 6% of their earlier year's tax payments, with a friendly example provided for a family bringing home 70,000 rubles a month (about 840,000 rubles annually), who would rake in over 51,000 rubles in refunds. The exact standard tax rate isn't mentioned, but the 7% difference implies a baseline rate of 13% (with 6% retained by the government and 7% given back to the family).
- Who's Affected: This change targets about 4 million families and over 10 million children, focusing on those with fewer financial and property resources.
Stay tuned for more news dropping soon!
- The upcoming family tax change, set to take effect in 2026, will see a reduction in income tax payments for families with two or more children, provided their income is below 1.5 times the local minimum living wage.
- The finance ministry has announced that families who qualify for this measure will have 6% of their earlier year's income tax payments returned to them, which could result in significant refunds, such as over 51,000 rubles for a family earning 840,000 rubles per year.
- This tax measure, initially announced by minister Anton Kotyakov, is expected to benefit approximately 4.2 million families, totaling around 10 million children, according to the minister's presentation.
- In addition to biological families, adoptive and foster parents are also eligible to receive this refund, as clarified by Deputy Alexei Govyrin (United Russia).
