There is less to go before the campaign starts statement of income corresponding to the 2021 financial year, which this year will begin on April 6 until June 30. One of the main novelties is the change of sections -percentages- of the Personal Income Tax (IRPF), which they become six instead of five.
PSOE and United We Can agree to include in the 2021 General State Budgets a tax increase for the highest incomes and, together, they will affect about 36,200 taxpayers, 0.17% of the total. The new tranche (the sixth) applicable contemplates an increase of two points in the state rate levied on earned income of more than 300,000 euros, up to 47%.
In this way, the personal income tax brackets for income from work in the 2021 financial year are as follows:
1. First tranche up to 12,450 euros, in which 19% is paid.
2. Second tranche up to 20,200 euros with a rate of 24%.
3. Third tranche up to 35,200 euros with 30%.
4. Fourth tranche up to 60,000 euros with 37%.
5. Fifth tranche up to 300,000 euros with 45%.
6. Sixth tranche (new) from 300,000 euros of 47%.
Personal income tax is a progressive tax that works in stages, that is, it increases as income grows.
payroll withholdings
The most important income that most Spaniards receive is from work through payroll. That is why the Treasury has established a system of monthly withholdings that companies must compulsorily apply to their workers to satisfy the payment of personal income tax. When calculating these withholdings that appear on the payroll, several factors are taken into account, such as the amount of salary, disabilities, family situation, duration of the contract, etc.
Throughout the year it is convenient to pay attention to the personal income tax withholdings in the payroll. “They are an advance that we make to the Treasury on what will correspond to pay in the income statement. As far as possible, they try to approximate the final payment that we must make, but they do not always coincide and we must be careful,” they warn. at Bankinter.
If the personal income tax withholdings in the payroll are less than what corresponds to pay in income, then when making the declaration it will be paid. When the withholdings made have been higher than appropriate, it goes out to return (this is when the Treasury returns money to the taxpayer).
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