Spain's IRPF in 2026: tax brackets, calculations and planning
Calculate Spanish income tax by bracket, distinguish national and regional tax, and prepare decisions about income, investments and business structure.
Spain's 2026 IRPF brackets apply progressively: moving into a higher bracket does not put all your income at that rate. A useful forecast separates national and regional income tax, general income and savings income, and the annual liability from payments already made.
That matters whether you are self-employed, run a business or invest. It determines how much cash to set aside, how to assess a proposed sale and how to compare business structures. “Which bracket am I in?” is only the starting point. The more useful question is what you retain after expenses, contributions and the full tax calculation.
This guide covers the 2026 tax year, normally reported in an annual return in 2027. It is not a guide to the 2025 return filed during 2026. It describes Spain's common tax regime; the Basque Country and Navarre have their own foral systems. Special taxpayer regimes need a separate calculation.
Spain's national IRPF table for 2026: six brackets
Article 63 of Spain's Personal Income Tax Act, Law 35/2006, sets the national scale for the general taxable base. This is the base after applicable reductions, not necessarily your gross salary or business turnover.
| Portion of the general taxable base, EUR | National rate |
|---|---|
| Up to 12,450 | 9.5% |
| Over 12,450 to 20,200 | 12% |
| Over 20,200 to 35,200 | 15% |
| Over 35,200 to 60,000 | 18.5% |
| Over 60,000 to 300,000 | 22.5% |
| Over 300,000 | 24.5% |
Each rate applies only to the amount inside its bracket. If your base rises from EUR 35,200 to EUR 36,200, the first EUR 35,200 retains its earlier treatment. Only the additional EUR 1,000 enters the 18.5% national band, producing EUR 185 of additional national tax before other circumstances are considered.
This is not your total IRPF rate table. The regional component is still missing. It is not a withholding table either. Comparing 15% withheld from a professional invoice with the 24.5% top national band confuses an advance payment with one component of the annual liability.
Add the correct regional calculation
Apply the scale for your autonomous community and the relevant year. Its thresholds and rates can differ from the national ones, so simply doubling the national amount is not a reliable calculation. Regional personal and family minimums and tax credits can differ too.
Regional residence follows statutory criteria, including days spent in a territory and the subsidiary rules for determining economic interests. Changing a postal address does not, by itself, select a different scale. When planning a genuine move, establish which residence rules apply to that tax year before comparing figures.
From receipts to the annual tax calculation
First identify the category of income. Employment, business and rental income normally belong in the general base, subject to the rules for each category. Interest, dividends and gains from selling assets usually enter the savings base. Integration and loss-offset rules matter: a loss cannot simply be deducted from any unrelated income.
You then calculate net income, combine the appropriate categories and apply permitted reductions to reach the taxable bases. For a business, VAT collected is not thereby available profit. Expenses need to qualify, and equipment may have to be depreciated rather than deducted immediately.
The personal minimum is not an expense deduction
For the national general-income calculation, apply the scale to the taxable base and then subtract the tax produced by applying the same scale to the relevant personal and family minimum. It is not simply tax on “base minus allowance”.
The AEAT explanation of the national calculation describes this mechanism. That explanatory manual concerns 2025; the 2026 table here is checked against the applicable legislation.
Where the general base does not absorb the minimum, the law specifies how it is used against savings income. Age, children, dependent relatives and disability can change the amount. Two people with the same taxable base therefore need not have the same liability.
Worked example: a EUR 40,000 general taxable base
Illustrative example, not a client case or a complete tax return. Assume an individual under 65, filing separately, with a EUR 40,000 general taxable base and a EUR 5,550 national personal minimum. There are no additional minimums, child-maintenance arrangements or special rules. We calculate only national general-income tax, before tax credits and advance payments.
| Item | EUR |
|---|---|
| General taxable base | 40,000 |
| National tax before the minimum | 5,250.75 |
| Personal minimum used | 5,550 |
| Tax corresponding to that minimum | 527.25 |
| National general-income tax after the minimum | 4,723.50 |
The bracket calculation is 12,450 × 9.5% + 7,750 × 12% + 15,000 × 15% + 4,800 × 18.5% = 5,250.75 EUR. The minimum produces 5,550 × 9.5% = 527.25 EUR. Therefore, 5,250.75 - 527.25 = 4,723.50 EUR.
The result is approximately 11.8% of the base, although the last national bracket used is 18.5%. That illustrates the difference between average and marginal rates. You still need to calculate regional tax, include any savings income, and apply the relevant credits and advances. EUR 4,723.50 is not the person's total amount payable.
Savings income in 2026: interest, dividends and capital gains
Articles 66 and 76 of the IRPF Act set the national and regional components for savings income. Under the common regime, the combined rates are:
| Portion of the savings taxable base, EUR | Combined rate |
|---|---|
| Up to 6,000 | 19% |
| Over 6,000 to 50,000 | 21% |
| Over 50,000 to 200,000 | 23% |
| Over 200,000 to 300,000 | 27% |
| Over 300,000 | 30% |
The 30% rate applies only above EUR 300,000. Your savings base is not your bank balance or the market value of your portfolio. For an asset sale, distinguish disposal proceeds, acquisition cost and eligible transaction costs to establish the gain or loss.
EUR 30,000 of sale proceeds is not EUR 30,000 of gain
In a separate illustration, an investment bought for EUR 10,000 is sold for EUR 30,000. With no transaction costs, offsettable losses or other savings income, the gain is 30,000 - 10,000 = 20,000 EUR. Assume the personal minimum has already been used in full against the general base.
Savings tax is then 6,000 × 19% + 14,000 × 21% = 4,080 EUR. You do not tax the entire sale price, or charge 21% on the whole gain. Fees, foreign-currency transactions or eligible losses from other years could alter an actual calculation.
Before deciding to sell, assemble dates, acquisition values and supporting records. Realising transactions in different years can affect progressive taxation, but the outcome depends on other income, recognition rules and the nature of the transaction. A sound investment decision should work commercially as well as fiscally.
Withholding, instalments and the balance on your return
Payroll or invoice withholding and applicable instalment payments are advances towards IRPF. They are not additional taxes added again to the annual liability. A refund can mean that advances exceeded the final amount; it does not, on its own, show that your overall tax burden was lower.
For professional invoicing, see our guide to IRPF withholding on invoices. Self-employed forecasts should separately account for income-based social security contributions and the RETA contribution adjustment. Contributions and IRPF have separate rules, even though both affect cash available.
Build a year-end forecast from completed activity plus reasonable expectations for the remaining months. Multiplying an exceptional month by twelve is not a useful substitute. Nor is treating every bank receipt as taxable income of that year.
What to review before the year ends
- Expenses and depreciation. Check the business purpose, invoice, records and deduction period. Equipment may not be deductible in full when purchased. Our self-employed business expenses guide develops that review.
- Pension contributions. The general reduction limit is the lower of EUR 1,500 and 30% of net employment and business income. Extensions for qualifying employment or self-employed arrangements have conditions; an extra EUR 8,500 is not universally available.
- Investments. Review gains, losses and offset restrictions before selling. Each deduction or loss needs to fit the right income category and period.
- Personal and regional credits. Check eligibility, evidence and incompatibilities. A generic list cannot tell you what applies to your circumstances.
- Income recognition. Article 14 determines the relevant tax year. For business income, delaying a December invoice until January does not automatically move the income into January's year. The applicable recognition method governs the result.
The aim is to retain resources through justified decisions. Spending solely to reduce a taxable base can leave you worse off: the tax saving covers only part of the outlay. Prioritise purchases and investment the business actually needs.
Self-employment, a company or a US LLC?
There is no single turnover figure at which a new structure becomes the right answer. Compare profit after expenses, contributions, taxes, recurring costs and the money you need personally. A corporate tax rate is not directly comparable with a personal marginal rate if remuneration or distributions must follow.
A US LLC can provide a legal entity for contracts, co-owners, assets and international banking and payment arrangements. That practical value deserves its own assessment instead of being reduced to one percentage. Our LLC versus self-employment comparison for Spain examines that decision.
The IRS generally treats a domestic single-member LLC as disregarded and a multi-member LLC as a partnership by default, unless a corporate election applies. Foreign-owned describes ownership. Spanish residents also need the Spanish classification: the DGT resolution of 6 February 2020 establishes criteria for foreign entities under Spain's income-attribution regime.
Retained funds can finance growth, investments and reserves. Tax timing follows the applicable regime, not merely whether money leaves the account. Good structuring brings that treatment together with reinvestment plans and personal cash requirements.
Plan your structure with Exentax
We review your activity, residence, ownership and intended use of profits. Exentax coordinates the LLC structure, banking and ongoing professional support, including Spanish tax coordination when it forms part of the agreed scope.
Bring your last return, current-year income and expenses, withholding, contributions and planned investments. If you already own an LLC, include its classification, ownership and transactions with members. Those details let us compare meaningful scenarios and recommend a concrete arrangement with clear costs and next steps.