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Practical Income Manual 2021.

In general

The determination of the full personal income tax contributions is made from 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.
  • Liquidable base of savings to which the rates of their corresponding state and regional scales are applied.

    This general scheme incorporates certain specialties derived, on the one hand, from the very nature of personal income tax as a tax partially transferred 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 progressiveness" and to annuities for child support paid by judicial decision.

State tax and regional tax

Personal income tax is a tax transferred on a partial basis, with a limit of 50 per 100 , in the terms established in Organic Law 8/1980, of September 22, on financing of the Communities Autonomous, last modified for the purposes of Personal Income Tax , by Organic Law 3/2009, of December 18 (BOE of 19).

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

Regarding the autonomous quota , it should be noted that the Autonomous Communities of the common regime can, in accordance with the provisions of article 46.1 of Law 22/2009, of December 18 ( BOE of 19), assume regulatory powers in determining the amount of the personal and family minimum applicable for the calculation of the regional tax and on the regional 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 and the Communities of Castilla y León and Madrid , have approved the amounts of the personal and family minimum that resident taxpayers must use in 2021 in their territory to calculate the regional tax. These regional amounts are discussed in Chapter 14 .

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

Regarding the Autonomous Community of Catalonia, it must be taken into account that the Ruling of the Constitutional Court 186/2021, of October 28, falling on the unconstitutional appeal 1200-2021, has declared the nullity of article 88 of the Law of the Parliament of Catalonia. 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 established an amount of 6,105 euros per year for the minimum staff applicable in the autonomous section of Personal Income Tax to taxpayers residing in the Autonomous Community of Catalonia whose sum of the general taxable bases and savings is equal to or less than 12,450 euros, considering that it exceeds the limits that for the autonomous exercise of this regulatory competence are attributed by article 46 of Law 22/2009. Therefore, in 2021 the amount of the minimums does not differ from the state amount (5,550 euros) regardless of the taxpayer's tax base.

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

However, the autonomous scale included in article 65 of the IRFF Law (Additional Provision thirty-second Personal Income Tax Law) is applicable to taxpayers with habitual residence in Ceuta and Melilla.

Likewise, in the case of taxpayers with habitual residence abroad due to any of the circumstances referred to in articles 8.2 and 10.1 of the Personal Income Tax Law , the determination of the tax The full report presents certain specialties whose comments are 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 Income Tax Law the personal and family minimum does not reduce the income of the tax period, but is part of the general taxable base up to the amount of the latter and, where appropriate, of the taxable savings base for the rest.

The application of the personal and family minimum and the determination of the full Personal Income Tax contributions are represented graphically in the diagram that appears in the following section: