Russia’s parliament is considering a major change to its income tax system, proposing a progressive structure with higher rates for the wealthiest individuals. Under the proposed plan, earners making up to 5 million rubles (approximately $68,000 USD) would see no change in their current 13% tax rate. However, those exceeding this threshold would face a gradual increase in their tax burden.
Those earning between 5 million and 24 million rubles (around $326,000 USD) would pay a 15% tax rate. The rate would rise further to 18% for incomes between 24 million and 200 million rubles (approximately $2.7 million USD). A significant jump to a 20% rate is proposed for earners exceeding 200 million rubles but below the 500 million rubles (roughly $6.8 million USD) mark. Finally, the highest earners, exceeding 500 million rubles, would face a top tax rate of 25%.
