How much do I have to pay income tax?

How much do I have to pay income tax?

The payment of taxes is one of the points of greatest stress for everyone, whether they are natural or legal persons. The key To disminuye the concern as much as possible, it is knowing how to calculate all the taxes. You perro also use employees dedicated to this job. So you know how much you have to pay. Let’s take the personal income tax payment as an example.

Who is in charge of regulating the rates of this tax? Cánido you be exempted from said payment? Below we will explain each of these points.

Who regulates IRFP payments?

The institution in charge of regulating the payment of personal income tax is the Tax Agency. Its decisions are legally valid throughout the Spanish territory. However, this does not orinan that everyone should pay the same, no matter where they live. The reason is that government entities, such as the Autonomous Communities, influence the final decision of the Tax Agency.

These organizations perro modify 50% of the income tax payment. This could make the amount varies a little from one city to another. Even so, the amounts are generally close to each other. The minimum could be between 13 and 19% and the maximum goes from 45 to 48% in the collection of the tax.

Should I Pay More IRFP if I Earn More Money?

The rate to pay for personal income tax is closely related to the income received. This is done in order to be fairer when collecting taxes. It means that whoever receives more pays more. Below you will see the table with the percentage to be paid, according to what was obtained.

  • 19% It is applied to income that reaches up to 12,450 euros per year.
  • 24% It is applied to amounts that exceed 12,450 euros, with a maximum of 20,200.
  • 30% It is used to determine the payment of amounts between 20,201 and 35,200 euros.
  • 37% If the income is greater than 35,200 euros and less than 60,000, this rate is used.
  • Four. Five%. This is the highest percentage, being used with annual income of more than 60 thousand euros.

Many people tend to get confused, coming to think that a person who earns a higher salary than another, by paying the corresponding percentage, may end up receiving less money than others. But this is not so. The truth is that, if we talk about being equitable, the law on the payment of taxes such as personal income tax seeks to be and succeeds.

To better understand this point we will use an example: a person who earns 20 thousand euros is in the 24% range. But of those 20 thousand euros the first 12,450 are subject to a 19% fee and the rest of the money, 7550 euros, will be taxed at 24%. In cases where a person earns 60 thousand euros or more, each section of the IRPF table must be taken into account.

Does the IRFP Payment Rate Go Up Every Year?

You should know that the percentages for the payment of personal income tax undergo changes, but it is not a fixed change every year. In fact, since 2015, the variation of these rates has been very little. To see one of the most noticeable changes, we would have to go to that year, where the minimum went from 24 to 19% in most of the country’s cities.

You should also consider some fluctuations in the collection of this tax, related to other factors. For example, if you receive a salary increase, you may have to pay more in income tax, but if you are lucky enough to have a child, the final amount to pay decreases.

It is very important that know in detail each of the variants of this taxso you cánido understand why the amount to pay changes, even among people with afín annual income.

Knowing everything related to personal income tax is even more important if you own a company. The Tax Agency requires that all businesses retain this percentage of their employees. In order to do it properly, especially using the correct percentages, you need to know them well.

Are there cases in which I perro be exempt from paying IRFP?

The Personal Income Tax Law, or LIRPF, also offers information related to the people who are exempt from paying this tax. To enjoy it, as we will see below, you must meet a series of requirements.


The indemnities are free of the payment of IRPF. These cánido be of two kinds. First of all, due to dismissal of an employee. If the amount for the dismissal is equal to or less than 180 thousand euros, you will not be obliged to pay before the Tax Agency. In case of exceeding that amount, if you will have to do it.

The other type of compensation is canceled for physical damageFor example, those that occur in a traffic accident. But, the amounts cannot be greater than the amount equipo by law. However, if the payment is made by a government agency, whatever the amount, it will be exempt from personal income tax.


When a person enjoys prizes, they should not pay personal income tax, unless the amount exceeds the limit previously equipo by the Agency. Let’s take the example of a person who wins the lottery. If the prize does not exceed 40 thousand euros, he is exempt from paying. But, if the amount exceeds that amount, the first 40 thousand will be exonerated and 20% will be applied to the rest.

Nor should personal income tax be paid if the prize is literary, artistic or scientific. However, each of the amounts involved yes they must be declared, only that the amount to be paid in taxes will remain blank because it is exempt. This statement is made to prevent possible fraud.

Jobs outside the country

In case you work abroad, you will not have to pay personal income tax in Spain, although in reality this exemption is only so that you do not pay this tax twice. We say this because each country requires payment for the income obtained at the end of the fiscal year. So, although you should not cancel it in Spain, you will have to do it in the country where you worked.

On this point, you should know that the income cannot be obtained in any country known for its ease of evading taxes, the so-called tax havens. You must also be able to demonstrate that the income comes from a company, outside the country, and that it is stable. Finally, the amount entered per year cannot exceed 60,100 eurosOtherwise, you will have to declare it and pay the corresponding tax.

The best thing you cánido do if you have a question about personal income tax is to ask at one of the Tax Agency offices, there are many located throughout the country. It is also positive consult an advisorso you will be sure that you pay the appropriate amount of personal income tax.

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 How much do I have to pay income tax?
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  How much do I have to pay income tax?

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