It is possible that many employed workers begin to notice in their payrolls some adjustments in February 2023due to the package of fiscal measures approved at the end of 2022. The so-called Fiscal Plan included, as explained at the time by the Minister of Finance, Maria Jesus Montero, changes both in the taxation of the social majority and of large companies.
For the former, the measures focus on some tax relief such as a Income tax reduction for medium and low incomes, the self-employed and small businesses.
Meanwhile, the measures for large companies include a one point increase in personal income tax in capital income greater than 200,000 euros (going from 26% to 27%) and from two points to the income over 300,000 eurosthe setting of 15% of the minimum corporate tax rate, a temporary tax on energy companies and banks (already announced) and other taxes on financial transactions and digital services.
Tax changes in 2023 that affect workers
Many taxpayers will notice from the month of February a slight (positive) change in their payroll. For example, they may have been affected by the drop in personal income tax for income of less than 35,200 euros per yeara measure that impacts 80% of the working population.
In the same way, income from work from 15,000 euros will be exempt from the payment of personal income tax for single taxpayers without children, which means an increase of 1,000 euros compared to the current ‘floor’ (14,000 euros). In the case of taxpayers to employees with two children, the increase is from 18,000 to 19,000 euros.
Another of the most important changes in the Personal Income Tax (IRPF), which is levied on the income of people residing in Spain during a calendar year, is that the Government has lowered it for income below 21,000 euros gross per year.
Until now, people with incomes between 15,000 and 18,000 euros benefited from a tax reduction. However, with the new Budgets, this reduction is extended to all taxpayers who receive a gross annual salary of between 15,000 and 21,000 euros. This measure will affect 50% of workers, according to government calculations, and will mean savings of 1,881 million euros.
Personal income tax brackets in 2023: withholding table
Personal income tax withholdings are a kind of advancement that we do to the Treasury of the part that we will have to pay in the income statement.
When in the computation at the end of the fiscal year the personal income tax withholdings on the payroll have been for an amount that corresponds to us to pay in rent, when making the declaration it will go out to pay. When these have been higher than what corresponds, the rent will be returned. Read this article to know what are the parts of a payrollin case there are still concepts that you are not clear about.
In the personal income tax there is a state stretch, which is the same for all of Spain, and another autonomic, which is added to the previous one and which depends on each autonomous community. Some communities like Madrid, Galicia, Andalucía or Murcia they already announced that they would deflate the autonomous section.
Payroll calculator in 2023 with the new personal income tax
The Tax Agency has made a calculator available to taxpayers that allows them to find out the correct withholding percentage for their payrolls. Access the tax withholding calculator here.
You only have to fill in some data with basic information such as the NIF of the recipient, year of birth and the address of habitual residence. You must indicate if you have any degree of disability, your family and employment situation, as well as information about the contract (have a pay slip from last year at hand).