For families with two or more children, there is a plan to return a portion of personal income tax. The proposal suggests a refund calculated at 7% of 13%, which effectively lowers the tax burden to 6% for eligible households. These changes are outlined in materials from the Ministry of Finance of the Russian Federation and are part of ongoing fiscal discussions.
The focus is on households where the average income per family member falls below 1.5 times the subsistence level, which is set at 319,194 rubles per person each year under current 2025 conditions. In practical terms, this means that a family of four with two children would be constrained to a total annual income not exceeding 1.3 million rubles to qualify for the measure.
Looking at the impact, roughly half of families with two or more children are expected to benefit from this tax payment. The funds for the program would come from the federal budget as part of the broader fiscal framework for the year ahead and the coming planning period.
The mechanism would resemble a cash refund or a 13th salary, delivered once a year. The design envisions both parents receiving payments if their combined income does not exceed certain monthly thresholds. Specifically, if both parents are employed, their joint monthly income must stay under 106 thousand rubles for qualification. If only one parent is working, the income limit would apply to that individual’s earnings, ensuring the program reaches lower and middle-income families.
On May 28, the Ministry of Finance submitted a package of draft laws to the Russian government. These proposals include amendments to the 2024 budget law and to the planning period for 2025 and 2026, as well as adjustments to the Tax and Budget Codes. The next steps involve review by the commission on legislative activities, followed by consideration in a government meeting. The government aims to adopt these amendments during the spring session of the State Duma so that the measures can be implemented in line with the directives from the president’s address to the Federal Assembly on February 29, 2024.
Earlier discussions in the State Duma explored raising the personal income tax progression threshold to align with two average salary levels. This broader consideration reflects ongoing debates about how tax policy should balance revenue needs with support for families and workers, and how such shifts would interact with other fiscal instruments within the budget framework.