- Awara
- August 12, 2024
- 44
From January 1, 2025, a Progressive Personal Income Tax Scale with a Maximum Rate of 22% Will Come into Effect
Starting from January 1, 2025, a five-stage progressive personal income tax scale with a maximum rate of 22% will come into effect.
Each of the new rates will not apply to the entire income, but only to the amount exceeding the threshold level of the previous level. Please find below the applicable rates and income levels in the table below:
| Personal Income Tax Rate | Income per Year (in RUB). | Average Monthly Income (in RUB) |
| 13% | up to 2,4 million | up to 200,000 |
| 15% | from 2,4 up to 5 million | from 200,000 to 416,700 |
| 18% | from 5 up to 20 million | from 416,700 up to 1,67 million |
| 20% | from 20 up to 50 million | from 1,67 up to 4,17 million |
| 22% | from 50 million | from 4,17 million |
Example:
Ivan’s salary is 600,000 RUB/month gross (before personal income tax is decucted).
From January to April (inclusive), Ivan will earn 600,000 rubles x 4 months = 2,400,000 rubles (before tax deduction). For this period, the personal income tax remains at 13%.
From May, Ivan’s income will exceed the first threshold of 2,400,000 rubles. The personal income tax rate for Ivan will increase to 15% and remain at this level until August inclusive.
In September, Ivan’s income from the beginning of the year will exceed the second threshold of 5,000,000 rubles. This means that from September until the end of the year his personal income tax rate will be 18%.
What are the exceptions?
1. Income related to the special military operation
2. Regional coefficients and allowances for workers employed in the far north and equated areas. The progressive scale will be applied to the base part of their salary, without taking into account additional payments.
3. For low-income families with two or more children the personal income tax rate will be reduced.
4. Income from dividends and deposits will remain at the previous rates of 13% and 15%, and the increased rate will be only applied to income from 2.4 million rubles.
5. When selling property (for example an apartment or a car) old tax rates remain in place.
6. It may also apply in some other cases.
Contact us for more information!
+7 495 225-30-38 Moscow
+7 812 244-75-49 Saint Petersburg
+7 495 225-30-38 Tver
