Spain Income Tax (IRPF) 2026: Brackets, Allowances and How It Works
Spain's IRPF (Impuesto sobre la Renta de las Personas Físicas — personal income tax) is a progressive tax with six national brackets ranging from 9.5% to 24.5%, applied alongside a regional scale set by each autonomous community. Every taxpayer deducts a personal and family minimum (base amount 5,550 EUR in 2026) and work-income deductions before tax is computed on the resulting taxable base. Monthly withholding is collected by the employer and reconciled in the annual return filed April to June of the following year. This guide is informational; verify your specific situation with a qualified tax professional.
What is IRPF and who pays it
IRPF (Impuesto sobre la Renta de las Personas Físicas) is levied on the income of individuals tax-resident in Spain during a calendar year. It is governed by Ley 35/2006 and implementing regulation RD 439/2007. Residents with employment income, business income, capital income, or capital gains are generally liable. Employers withhold a portion of each monthly payment as a prepayment (retención), and the final tax liability is settled through the annual Declaración de la Renta (Modelo 100) filed between April and June of the following year. Tax residents are taxed on worldwide income; non-residents are subject to the separate IRNR regime.
State tax brackets for 2026
The national IRPF scale established in Art. 63 of Ley 35/2006, confirmed in the consolidated text as of 29 April 2026, has six marginal brackets: up to 12,450 EUR at 9.5%; from 12,450 to 20,200 EUR at 12%; from 20,200 to 35,200 EUR at 15%; from 35,200 to 60,000 EUR at 18.5%; from 60,000 to 300,000 EUR at 22.5%; and above 300,000 EUR at 24.5%. These are marginal rates: only the slice of income falling within a bracket is taxed at that bracket's rate, not the entire taxable base. The national scale covers roughly half of the total IRPF charge; each autonomous community levies a parallel regional scale.
Personal and family minimum (mínimo personal y familiar)
Before IRPF is computed, every taxpayer applies the personal and family minimum (mínimo personal y familiar, Arts. 57–60 Ley 35/2006) — the amount of income the law treats as needed for basic subsistence and shields from effective taxation. In 2026 the base taxpayer minimum is 5,550 EUR. Supplements apply for taxpayers aged 65 and over (with a further amount at 75). Dependent children under 25 with annual income below 8,000 EUR generate additional amounts: 2,400 EUR for the first child, 2,700 EUR for the second, 4,000 EUR for the third, and 4,500 EUR for each further child; every child under age 3 adds 2,800 EUR more. Technically, the minimum is taxed at the same scale as the taxable base and the resulting tax is deducted from the gross liability, leaving income up to the minimum effectively tax-free.
Work-income deductions and the Art. 20 reduction
Employees deduct from gross employment income both their Social Security contributions and a flat 2,000 EUR work-expense allowance (Art. 19 Ley 35/2006). Taxpayers with a recognised disability between 33% and 64% may deduct an additional disability supplement; those with a disability of 65% or above may deduct a higher amount. Article 20 of the same law provides a further reduction of up to 7,302 EUR for taxpayers whose net work income (after the SS and flat deductions) is 14,852 EUR or below. This reduction phases out linearly for net income between 14,852 EUR and 19,747.50 EUR, reaching zero above that upper threshold. It applies only when other income sources do not exceed 6,500 EUR per year.
Regional scale differences across autonomous communities
Each of Spain's 17 autonomous communities sets its own regional IRPF scale. In 2026, communities carry their scales forward under the ongoing budgetary extension (prórroga presupuestaria), since Spain has operated without new General State Budgets for several years. In practice, the same gross salary can produce meaningfully different take-home pay depending on where the taxpayer lives: communities with historically lower regional rates create a lighter overall tax burden, while others apply notably higher rates at the upper brackets. For a precise breakdown by autonomous community, use the paycalceu.com calculator or consult the AEAT practical manual at sede.agenciatributaria.gob.es.
FAQ
What are the Spanish income tax brackets for 2026?
The national scale has six marginal brackets: 9.5% up to 12,450 EUR; 12% from 12,450 to 20,200 EUR; 15% from 20,200 to 35,200 EUR; 18.5% from 35,200 to 60,000 EUR; 22.5% from 60,000 to 300,000 EUR; and 24.5% above 300,000 EUR. These figures come from Art. 63 of Ley 35/2006, verified in the consolidated text as of 29 April 2026. A separate regional scale set by each autonomous community applies on top of these national rates.
What is the personal and family minimum (mínimo personal y familiar)?
It is the income amount the law treats as needed for basic subsistence and therefore shields from effective taxation. In 2026 the base taxpayer minimum is 5,550 EUR, with supplements for age and dependent children. Mechanically, the minimum is run through the same scale as the taxable base and the resulting tax is subtracted from the gross liability, ensuring income up to the minimum is not effectively taxed.
How is monthly IRPF withholding calculated on a Spanish payslip?
The employer projects the annual salary, subtracts the Art. 19 flat deduction and SS contributions, applies the Art. 20 work-income reduction if eligible, and deducts the personal and family minimum. State and regional IRPF scales are then applied to the resulting taxable base; the total annual tax divided by gross annual salary gives the withholding rate (tipo de retención), which is applied to each payment.
Who is required to file an annual income tax return in Spain?
The obligation generally arises when employment income from a single payer exceeds certain annual thresholds; where there are multiple payers and the second or subsequent payer contributes above specified limits, the threshold is significantly lower. Taxpayers with capital income, business income, or capital gains above their respective limits are also obliged to file. The specific thresholds may change each year; check the current rules at sede.agenciatributaria.gob.es.
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.