loss income tax brackets 2023 They need to know what your personal income tax withholding on payroll will be and how much taxes you will pay on next year’s income statement, which corresponds to 2024.
The personal income tax consists of a state type, which is uniform for the whole of Spain, and a regional type, which is added to the previous one and which depends on each autonomous community.
It must be remembered that income is a progressive tax. In other words, the highest paid are those who earn the highest.
In 2023 there will be a tax deduction for employees whose wages do not reach 35,200 gross euros per year. Between 15,000 and 21,000 Euro gross income per year the savings would be significant.
as well, Threshold from which income statement is to be submitted increased from 14,000 Euros to 15,000 Euros per year, You will see these changes in the income tax return you will file in 2024.
shown below What are the income tax brackets for 2023?An example to better understand how tax withholding works.
These are the sections of IRPF 2023
The first thing you should know are the income tax brackets for 2023.
These are state withholdings that will apply to all taxpayers. Regional are for those who do not live in Spain. If this is not your case, you will need to consult your autonomous community’s withholding tax to get the full perspective, although the totals will be very similar to what appears in the following table:
|personal income tax brackets 2023||state type||autonomous type||complete|
|from 0 to €12,450||9,5%||9,5%||19%|
|From €12,450 to €20,200||12%||12%||24%|
|From €20,200 to €35,200||15%||15%||30%|
|From €35,200 to €60,000||18,5%||18,5%||37%|
|from €60,000 to €300,000||22,5%||22,5%||45%|
|more than €300,000||24,5%||22,5%||47%|
as you can see, The maximum withholding is 47% after adding the state withholding and corresponding to your autonomous community.
This does not mean that almost half of the income will be deducted. Personal income tax withholding works in another way which is described below.
how tax withholding works
Income is a progressive tax that exerts fiscal pressure as income increases.
In other words, the percentages you see in the table are applied sequentially: first one, then the other. In this case the bill gets reduced.
Additionally, these clauses do not apply to your salary in full. There are some minimum rent exemptions and some deductions depending on your individual and family situation.
The basic deduction for a person under the age of 65 is 5,550 euros. Therefore, a person earning 30,000 euros is as if he had earned 24,450 euros.
How much income tax would you pay with a salary of 35,000 euros?
The best way to understand how IRPF works is through an example. A typical case might be a single person without children earning 35,000 Euro gross per year.
The first thing to do is to subtract 5,500 Euros which corresponds to the original reduction. Thus, the tax base remains at €29,500 gross. This is an advantage.
19% applies to the first 12,450 Euros (2.365 Euro)For the next installment, which is €7,750, 24% is applied (1.860 Euro) and the last installment, which is 9,300 euros, corresponds to 30% (2.790 Euro).
complete, This person will have to pay 7,915 euros in personal income tax in 2023.