A package of legislative changes took effect in Russia from 1 January 2026, affecting both individuals and businesses. Here is what matters most — without the noise, with a focus on what actually changes in daily life and work.

VAT rises to 22%

The headline tax change of the year. Russia’s standard VAT rate increased from 20% to 22%, under a law signed by the President in November 2025.

Reduced rates (10% and 0%) on specific categories of goods and services remain in place. Businesses on the simplified tax system (USN) that pay VAT at 5% or 7% are not affected by this change.

What it means in practice. Prices on most goods and services will rise by two percentage points. Contracts signed before 2026 without a price-revision clause for tax changes create risks for sellers. If you have live contracts — check how VAT is stated in them.

Minimum wage rises to 27,093 roubles

The federal minimum wage (MROT) from 1 January 2026 is 27,093 roubles — up 20.7% from the previous 22,440 roubles. This is the largest single increase in recent years.

The minimum wage affects not only base salaries but also:

minimum sick-pay benefits;
penalties in labour disputes;
certain social payment calculations.

Employers with any staff earning below the new minimum are legally required to increase wages.

Insurance pensions indexed by 7.6%

From 1 January 2026, insurance pensions were increased by 7.6% — the same rate for both working and non-working pensioners. The average insurance pension now exceeds 27,000 roubles per month.

From 1 April 2026, social pensions were indexed by 6.8%.

Family capital indexed from 1 February

From 1 February 2026, the maternity (family) capital was increased by 5.6%:

for the first child — 728,922 roubles;
for the second child (if nothing was received for the first) — 963,243 roubles;
top-up for the second child if the first was already claimed — 234,321 roubles.

The indexation also applies to previously issued certificates with an unspent balance.

Simplified tax system and VAT: new 20-million-rouble threshold

For businesses on the USN, the threshold below which VAT is not owed has been significantly reduced.

Before: businesses whose prior-year revenue did not exceed 60 million roubles were exempt from VAT.

Now: the threshold has dropped to 20 million roubles. Businesses above this amount must pay VAT. Crucially — this does not mean switching to the general tax system. It remains possible to stay on the USN and pay VAT at reduced rates of 5% or 7%.

The threshold will keep falling: to be exempt from VAT in 2027, 2026 revenue must not exceed 15 million roubles; in 2028, the limit drops to 10 million.

Fraud protection: 48-hour transfer hold

From 2026, banks are required to screen transfers for fraud signals. If a transaction looks suspicious, the bank may hold it for 48 hours — giving the client time to reconsider or receive a warning from family members.

The full picture of all four new anti-fraud tools is in a separate article.

Utilities: tariffs to be indexed twice a year

From 2026, utility tariffs are planned to be revised twice a year — in January and July — rather than once annually. Adjustments are set at the regional level in coordination with the federal government.

What to do now

If you are an employer:

Check salaries — none should be below the new minimum wage.
Review live contracts: how is VAT stated, and is there a clause allowing price revision if the tax rate changes?

If you are on the simplified tax system:

Compare your prior-year revenue against the 20-million-rouble threshold.
If you exceed it — choose a VAT rate (5% or 7%) and notify the tax authority.

If you are an individual:

Set up anti-fraud protection through Gosuslugi: block real-estate transactions and enable the credit self-ban. Takes about 15 minutes.

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The 2026 tax changes affect your contracts, prices, and calculations? Get in touch to work through your specific situation.

Key Legislative Changes in Russia from 2026