Finance

Income Tax Calculator

Calculate your net salary and income tax withholding based on your country and region.

IRPF (Personal Income Tax) is the main direct tax in Spain and levies income earned by residents: salaries, pensions, capital returns, capital gains and business income. It is a progressive tax, meaning that the higher the income, the higher the percentage paid: bands range from 19% to 47% on the state scale, although the autonomous communities can modify them.

This calculator estimates income tax in Spain and other Spanish-speaking countries (Mexico, Argentina, Colombia), applying the main national tax bands. The result shows you the estimated withholding, social security contributions and monthly and annual net salary. Particularly useful for negotiating a salary, comparing tax conditions between countries or preparing your tax return.

Your Details

Enter your gross salary to calculate your net salary and withholding.

Calculations are indicative estimates. For an exact tax return, use the AEAT draft or consult a tax adviser.

How income tax is calculated step by step

The calculation follows a fixed sequence. First, gross earned income is determined and social security contributions and the earned-income reduction are subtracted, giving the taxable base. Next, any applicable reductions are applied, such as pension plan contributions, to arrive at the net taxable base. The progressive bracket scale is applied to that figure — in Spain made up of a state part and a regional part — and the effect of the personal and family allowance is deducted from the resulting liability. Finally, applicable deductions are subtracted and the result is compared with the withholdings already made during the year.

Worked example

For a gross salary of €35,000 a year: around €2,223 of social contributions (6.35%) and the earned-income reduction are subtracted, leaving a net taxable base of roughly €30,800. Applying the bracket scale, the first €12,450 is taxed at 19% (€2,365), the next €7,750 up to €20,200 at 24% (€1,860) and the remaining €10,600 at 30% (€3,180), totalling €7,405 of gross liability. After applying the €5,550 personal allowance, the liability falls to about €6,350 — an effective rate near 18% even though the marginal rate is 30%.

Savings income tax rates (capital income)

Savings base	Rate
Up to €6,000	19 %
€6,000 – €50,000	21 %
€50,000 – €200,000	23 %
€200,000 – €300,000	27 %
Over €300,000	30 %

Marginal rate versus effective rate

It is worth distinguishing two concepts that are often confused. The marginal rate is the percentage you would pay on the next euro you earned, that is, the rate of the highest bracket you reach; it is the relevant figure for deciding whether overtime or a pension contribution is worth it. The effective rate is the total liability divided by your income and is always considerably lower than the marginal rate, because the first brackets are taxed at lower rates. In the example above the marginal rate is 30% but the effective rate is around 18%. When someone says 'they take a third of my salary' they are usually confusing their marginal rate with what they actually pay.

Frequently Asked Questions about Income Tax

IRPF (Impuesto sobre la Renta de las Personas Físicas) is the Spanish personal income tax paid by all residents in Spain on income earned during a year (salaries, rents, investments, etc.).

Gross salary is the total amount the company pays you before deducting taxes and contributions. Net salary is the final amount you receive in your bank account after applying tax withholding and social security contributions.

Besides Spanish IRPF, this calculator estimates the equivalent tax in Mexico (ISR), Argentina (Impuesto a las Ganancias) and Colombia (Retención en la fuente), applying each country's brackets and rates. These are approximate figures: official numbers change frequently, so it's worth confirming them with your local tax authority.

No, and this is probably the most widespread misunderstanding about income tax. The tax is progressive by brackets, which means each portion of your income is taxed at its own bracket's rate, not the whole income at the highest rate you reach. If you earn €21,000 and the bracket starting at €20,200 is taxed at 30%, only the €800 above that threshold pays 30%; the rest continues to be taxed at 19% and 24% in their respective bracket. That is why earning more gross can never leave you with less net: moving up a bracket always pays off.

This is the portion of your income considered to cover your basic needs and which therefore is not taxed. The general personal allowance is €5,550 a year and increases with age: an extra €1,150 from age 65 and a further €1,400 from age 75. Added to this are allowances for dependent children (€2,400 for the first, €2,700 for the second, €4,000 for the third and €4,500 for the fourth and beyond), for dependent ascendants and for disability. These allowances reduce the base on which tax is calculated and explain why two people on the same salary can pay different amounts.

Because the withholding your employer applies each month is a payment on account calculated from a forecast, not the definitive tax. Over the year, circumstances the employer did not know about can change: a pay rise, a change of job, the birth of a child, a pension plan contribution or income from another payer. When you file your return the real liability is calculated and compared with what was withheld: if too much was withheld, the tax authority refunds the difference; if too little, you must pay it. Having two payers is the most common reason for a return ending in a payment.