In 2014, a worker who earned an annual salary of 30,000 euros paid practically the same no matter where he lived. The Personal Income Tax (IRPF) for this salary ranged from 5,400 euros in all the autonomous communities and there was practically no difference between them. This is no longer the case: in the last decade the differences between communities have accentuated.
Currently there is a 400 euro difference between Catalonia, which with an annual personal income tax of 5,040 euros is the one with the highest tax for a salary of 30,000 euros, and Madrid, which with 4,601 is the one with the lowest.
At different income levels, Catalonia, the Basque Country, Extremadura, Navarra and the Valencian Community alternate as the regions with the highest personal income tax. In contrast, Madrid is positioned as the most advantageous option, according to data from the report ‘Panorama of Regional and Regional Taxation’ prepared by the Registry of Tax Advisory Economists (REAF).
The higher the income, the greater the tax differences between territories. In the higher salary ranges, where cases are more exceptional, these differences become more evident. Notable gaps are observed between high-level taxpayers, especially those with incomes greater than 70,000 euros per year.
For example, an individual with an income of 110,000 euros would pay 38,800 euros in taxes in the Valencian Community, while in Madrid they will pay 3,000 euros less. This trend continues in all subsequent income brackets, becoming more pronounced above 600,000 euros. In the Valencian Community, a taxpayer with this level of income would pay 298,115 euros in personal income tax, while in the capital the figure would be only 251,990 euros.
Generally, lower incomes are exempt from declaring, since tax regulations establish exemption thresholds each year. In 2023, for example, employed workers who earned less than 22,000 euros gross per year would not be required to file the declaration, as long as they meet certain requirements, such as not having had more than one payer.
