Personal and family tax-free threshold
Regulations: Art. 56 Law Income Tax
The adaptation of the IRPF to the personal and family circumstances of the taxpayer is specified in the personal and family minimum whose function is to quantify that part of the income that, by being used to satisfy the basic personal and family needs of the taxpayer, is not subject to taxation by the IRPF.
To ensure the same reduction in the tax burden for all taxpayers with the same family situation, regardless of their income level, the amount corresponding to the personal and family minimum no longer reduces the income of the tax period to determine the taxable base, but rather becomes part of the taxable base to be taxed at a zero rate. In this way, taxpayers with the same personal and family circumstances achieve the same tax savings, regardless of their income level.
The application of the personal and family minimum in determining the full quotas of IRPF is discussed in more detail in the following Chapter.
The personal and family minimum is the result of adding the amounts corresponding to:
- Taxpayer minimum.
- Minimum for descendants.
- Minimum for ascendants.
- Minimum for disability of the taxpayer, his ancestors or descendants.
Law 22/2009, of December 18 , which regulates the financing system of the Autonomous Communities of the common regime and Cities with Statute of Autonomy and modifies certain tax regulations ( BOE of 19) has granted the Autonomous Communities regulatory powers over the amount of the personal and family minimum applicable for the calculation of the autonomous tax .
For these purposes, article 46.1 a) of the aforementioned Law provides that the Autonomous Communities may establish increases or decreases in the amounts corresponding to the taxpayer's minimum and the minimums for descendants, ascendants and disabilities regulated in articles 57, 58, 59 and 60 of the Personal Income Tax Law , with a limit of 10% for each of them.
In exercise of the aforementioned regulatory competence, the Autonomous Community of the Balearic Islands, the Autonomous Community of Catalonia, the Community of Madrid and the Autonomous Community of La Rioja have regulated the amount of the personal and family minimum applicable for the calculation of their autonomous tax other than that established in the Personal Income Tax Law.