The authorities announced on Tuesday the key formula for the new tax brackets from January 1, 2023. This is due to the annual indexation and adaptation of the withholding tax rates.
“Last year we had very high inflation. This translates not only into automatic indexation of salaries by sector, but also in higher indexation of tax rates, so that a greater part of your salary ends up in a lower tax bracket, which translates into a higher take-home pay,” says Kristiaan Andries, SD Worx Knowledge Center Advisor.
In comparison, two years ago, there was only question of an increase on average of five euros per month or 60 euros per year. Last year it was around 240 euros per year.
This increase, which differs according to the family situation, is always without counting the automatic indexation of the wages of the sectors, underlines SD Worx.