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Practical manual for Income Tax 2021.

In general

The determination of the total IRPF quotas is carried out based on the two components into which the taxpayer's taxable base is divided:

  • General taxable base to which the progressive rates of the state and regional scales are applied.

  • Taxable savings base to which the rates of the corresponding state and regional scales are applied.

    This general scheme incorporates certain special features derived, on the one hand, from the very nature of personal income tax as a tax partially ceded to the Autonomous Communities and, on the other, from the specific liquidation regime assigned to the personal and family minimum, to exempt income, except to determine the type of tax applicable to the remaining income, also called "exempt income with progressivity" and to the annual alimony in favor of children paid by court decision.

State tax and regional tax

Personal income tax is a partially transferred tax, with a limit of 50% , under the terms established in Organic Law 8/1980, of September 22, on the financing of the Autonomous Communities, modified, for the last time for the purposes of Personal income tax , by Organic Law 3/2009, of December 18 (BOE of the 19th).

As a result of the transfer of personal income tax, two phases are distinguished within the tax settlement procedure: one state-wide and one regional-wide. Thus, both the general taxable base and the savings taxable base are subject to a state tax and an autonomous tax, which give rise to a state and an autonomous rate. Based on the latter, the portion of tax debt that is transferred to each Autonomous Community of the common regime is determined.

With regard to the autonomous quota , it should be noted that the Autonomous Communities of the common regime may, in accordance with the provisions of article 46.1 of Law 22/2009, of December 18 ( BOE of the 19th), assume regulatory powers in determining the amount of the personal and family minimum applicable for the calculation of the autonomous tax and on the autonomous scale applicable to the general taxable base.

Regarding the amount of the personal and family minimum applicable for the calculation of the regional tax , both the Autonomous Communities of the Balearic Islands, Catalonia and La Rioja, as well as the Communities of Castilla y León and Madrid, have approved the amounts of the personal and family minimum that taxpayers resident in 2021 in their territory must use for the calculation of the regional tax. These autonomous amounts are discussed in Chapter 14 .

The Community of Castile and León (because their amounts do not differ) as well as the rest of the Autonomous Communities that have not exercised such regulatory competence, are subject to the amounts of the personal and family minimum established in the Personal Income Tax Law.

With regard to the Autonomous Community of Catalonia, it should be noted that the Constitutional Court Judgment 186/2021, of October 28, issued in constitutional appeal 1200-2021, has declared the nullity of article 88 of the Law of the Parliament of Catalonia 5/2020, of April 29, on fiscal, financial, administrative and public sector measures, and the creation of the tax on facilities that affect the environment, which set an amount of 6,105 euros per year for the personal minimum applicable in the autonomous section of the IRPF to taxpayers residing in the Autonomous Community of Catalonia whose sum of the general and savings taxable bases was equal to or less than 12,450 euros, considering that it exceeds the limits that article 46 of Law 22/2009 attributes for the autonomous exercise of that regulatory competence. Therefore, in 2021 the amount of the minimums does not differ from the state amount (5,550 euros) regardless of the taxpayer's taxable base.

As for the autonomous scales, all the Autonomous Communities have approved, in accordance with the provisions of article 46 of Law 22/2009, which regulates the financing system of the Autonomous Communities of the common regime and Cities with Statute of Autonomy, and in article 74 of the Personal Income Tax Law, the corresponding autonomous scales applicable in the year 2021 which are detailed below.

However, taxpayers with habitual residence in Ceuta and Melilla are subject to the regional scale set out in article 65 of the Personal Income Tax Law (Thirty-second Additional Provision of the Personal Income Tax Law).

Likewise, in the case of taxpayers with habitual residence abroad due to the occurrence any of the circumstances referred to in articles 8.2 and 10.1 of the Income Tax Law, the determination of the total integral rate presents certain specialities, the commentary of which is made in a specific section of this Chapter (" Tax applicable to personal income tax taxpayers residing abroad ").

Application of the personal and family minimum

Regulations: Articles 63.1.2 and 74.1.2 Personal Income Tax Law

In order to ensure the same tax savings for all taxpayers with the same personal and family situation regardless of their income level, in the current Personal Income Tax Law the personal and family does not reduce the income for the tax period, but rather forms part of the general taxable base up to the amount of the latter and, where applicable, of the savings taxable base for the remainder.

The application of the personal and family minimum and the determination of the full quotas of IRPF , are represented graphically in the diagram that appears in the following section: