2. Personal Income Tax

In 2025 the income from the PIT They totaled 142,466 million, which implied an increase of 10.1%, a rate that exceeds by two and a half points the 7.6% reached in 2024. Had it not been negatively affected by the impacts associated with regulatory and management changes, which reduced revenue by 1.155 billion, the increase would have been 11%, a similar increase to that of the accrued tax, which is derived from a growth in the bases of 7.2% and the average rate of 3.5%. The fact that income in 2025 grew at a faster rate than in 2024, despite both rents and the average interest rate growing at lower rates than a year earlier, is due to two factors: On the one hand, in 2025 the result of the 2024 annual declaration was entered, which had a notable increase (26%); On the other hand, there is the impact of the aforementioned regulatory and management factors, which in 2024 had a negative effect on revenue collection that was almost three times greater than in 2025.

The gross household income They grew by 7.2% in 2025, almost two points below the 8.9% of 2024, but already linking four years with an average increase of 7.9% (Table 2.1). Income associated with capital gains not subject to withholding tax maintained strong dynamism in 2025, but the rest of the sources of income moderated their growth, with the slowdown being especially intense in income linked to movable capital, after the strong increases achieved in previous years driven by the evolution of interest rates. Without these incomes, the slowdown in household incomes would be only six tenths.

Labor income, which represents more than 82% of household income, grew by 6.2% in 2025, slowing for the second consecutive year (8.1% in 2023, 6.8% in 2024) in line with the behavior of employment and average wages. Even so, it should be noted that the growth of these incomes exceeds the average increase of the last ten years by more than one point. Its two main components, wages and pensions, which together account for more than 93% of labor income, moderated their progress in 2025. Wages grew by 6.1% and public pensions by 5.9%, in both cases eight tenths less than the previous year, due to the smaller increase in average salaries and pensions (Table 2.2). In the private sector, average wage compensation went from increases of around 5% in 2024 to increases of less than 4% in 2025. In this sector, the slowdown in wage growth was concentrated in large companies, losing 1.7 points compared to the previous year, despite which they closed the year with an annual increase of 7.5%. The increase in the wage bill in the SMEs It was lower than in Large Companies, at 5.7%, but in this case with an annual improvement profile, since they exceeded the rate observed in 2024 by almost one point. In summary, the private sector wage bill increased by 6.8% in 2025 (7.3% in 2024), with smaller increases in the final part of the year (Chart 2.1).

The slowdown in the public sector wage bill was more pronounced than in the private sector, falling from 5.6% in 2024 to 4% in 2025, due to the slower increase in employment (0.6% in 2025 compared to 2.1% the previous year), while average pay maintained an increase of 3.4% thanks to the salary update for public employees that took place in December (Chart 2.2).

The public pension fund grew by 5.9%, with a 1.7% increase in the number of pensioners, which continues its upward trend, and a 4.2% increase in the average public pension, around one point below the rate reached in 2024 (Graph 2.3). Private pensions increased again this year, even more strongly, although their weight on the total pension pool remains small (3.6% compared to the 8% they represented in the period 1995-2010, the year from which they began to lose importance).

Chart 2.4 compares the evolution of average private and public sector wages, average pensions and consumer prices (CPI) since 2010. In the case of wages, salary increases have not been sufficient to offset the increase in prices, while in the case of average public pensions, their evolution exceeds that of the price index.

The increase in the average pension has been influenced not only by the annual update, but also by the upward impact of the larger increases in the lowest pensions and the higher level of new pensions registered in the system compared to those already in it. It is also worth noting that in recent years, increases in average salaries in the private sector have been greater than in the public sector, thus closing the gap that opened between the two in 2020.

Finally, in 2025 unemployment benefits increased for the third consecutive year, and they did so at a slightly higher rate than in 2024 (4.7% compared to the previous 4.5%), the moderate acceleration being due to the greater increase in the number of unemployment beneficiaries (1.4% in 2025, 1% a year earlier), while the increase in the average benefit remained above 3%, although a few tenths below the rate recorded in 2024.

It is estimated that total household capital income grew by 14.2% in 2025, which represents a significant slowdown after the rebound to 27.2% reached in 2024. This evolution is a consequence of the sharp slowdown in income from movable capital (2.0% in 2025, 46% in 2024, Table 2.1). Capital income has regained a share of total household income that has not been seen since 2008, as can be seen in Graph 2.5, although it has not reached the historical high of 2006, where it represented 13.8%. Behind this recovery lies the behavior shown by capital income over the last five years, in which it has maintained an average increase of 14.2%. The composition of these incomes has evolved over the years, as can be seen in Graph 2.6. Income from movable capital was the main component of household capital income until 2015, when rental income took over, while capital gains also gained importance.

The intense dynamism shown by income from movable capital since 2022, as well as the strong increase in capital gains last year, meant that in 2024 the three sources of capital income had a similar weight on the total. In 2025, the expected significant increase in capital gains will mean that they will account for almost 40% of total capital income.

Income from movable capital grew by 2% in 2025, following the strong advances of the previous three years, in which it registered an average increase of close to 29% (Tables 2.1 and 2.4). From the end of 2022, interest income from bank accounts began to recover, following the interest rate increases that had been occurring for some time before. That process continued until it reached its peak level throughout 2024. Since then, a downward trend began which, from the second quarter of 2025, turned into losses compared to the income obtained a year earlier. For their part, dividends, which have been the main component of investment income since 2015, also moderated their growth in 2025, after three years of intense increases (Chart 2.7), in addition to the decline in the rest of the investment income.

Capital gains are expected to grow strongly again (32.6% in 2025 after 32.8% in 2024) thanks to the boost from gains not subject to withholding tax, since taxable income linked to investment funds grew by 4.1% in 2025, far from the 58% reached a year earlier (Tables 2.1 and 2.6). The positive evolution expected for non-withholding profits is associated with the good performance shown by both stock prices and real estate sales (Graph 2.8).

Meanwhile, for income derived from the rental of real estate, an increase of 7.9% is expected, a high rate but more moderate than that observed in 2024 (9.2%, Tables 2.1 and 2.5). In this case too, a more favorable behavior is expected for income not subject to withholding (mainly housing rental), in contrast to income subject to withholding, mostly linked to the rental of premises, which grew by 2.9% in 2025.

Finally, it is estimated that the income from personal businesses grew by 8.6% in 2025. The rate is four points below the 12.6% reached in 2024, but it means the maintenance for the fourth year of an average increase of 8.7%, a pace that exceeds by almost three points that achieved in other periods of expansion of these incomes (between 2013 and 2019 growth was around 5.8%, Table 2.8).

He effective rate on gross household income increased by 3.5% in 2025 (4.1% in 2024, Table 2.1 and Graph 2.9). Without the differential fee, the increase stands at 1.1% compared to 1.4% in 2024. As in previous years, the increase in the rate is due to increases in average wages and pensions.

He accrued IRPF It grew by 10.9% in 2025, thus marking five consecutive years of growth. Between 2021 and 2025, the average rate of increase is 11.2%, resulting from an average increase in income of 7.5% and an average effective rate of 3.5%. Without the differential fee, the PIT accrued tax increased by 8.4% in 2025, resulting from the increase in the tax bases of 7.2% and the effective tax rate of 1.1% (Table 2.1).

The income in the PITThey increased by 10.1% (7.6% in 2024), a rate eight tenths lower than the accrued tax rate. Most of the discrepancy is due to the fact that the latter includes the estimate of the differential fee accrued for the 2025 financial year, while the cash receipts include the income and refunds corresponding to the result of the annual declaration for the 2024 financial year. In addition, the refunds from the annual declaration include the extraordinary refunds made to the mutual members. Income excluding the result of the annual declaration increased by 8.6%, a rate closer to that of taxes accrued excluding the differential quota (8.4%).

Income from withholdings on work and economic activities grew by 8.7% in 2025, practically the same as in 2024 (9.0%). Income from work and economic activities increased by 6.0% (6.7% the previous year), while the average rate maintained an increase of 2.5% (Table 2.3and Graph 2.10).

In the private sector, the growth of income from withholdings on work and economic activities was 8.9% (9.1% in 2024). The slowdown in wage growth was partly offset by the higher interest rate. Growth differed between large companies, where withholdings increased by 9.5%, and smaller companies. SMEswhere they did so at 7.6%, but, while in the former the trend was a slowdown compared to 2024, in the latter the opposite occurred, in line with the evolution of their respective wage bills.

In the AA.PP. Income from withholdings from work grew by 8.1%, far from the 9.7% of 2024. The lower growth in withholdings was mainly due to the lack of salary updates for public employees, which only occurred in December and therefore had little impact on withholding revenues in 2025 (the greatest impact was observed in the first months of 2026). Thus, wage income grew by just over 5%, about three points less than in 2024, due to the effect of the late wage review combined with the slower growth in employment and the effective rate (which increased by 1.5% in 2025 compared to 2.6% in 2024). Conversely, income from withholdings on public pensions grew by about 11%, a figure close to the 11.7% of 2024. The lower increase in pensions limited the growth of the pension pool, although part of that effect was offset by a higher increase in the rate (4.7% in 2025 compared to 3.7% in 2024).

Revenue from withholding taxes on income from movable capital grew by 7.1% in 2025 (Table 2.4). The growth is not small, although it is if compared with the two previous years (26.7% in 2023, 40.8% in 2024), even with the 9.5% of 2022. The slowdown is less than that observed in income and accrued tax (which goes from 42% in 2024 to -1.5% in 2025), since the accrual corresponding to December 2024, which was 35.2% higher than that of December 2023, was paid into the January 2025 account, with the accrual of December 2025 (which fell by 7.2%) being paid into the January 2026 account.

Regarding withholdings derived from capital gains in investment funds, in 2025 they increased by 12.2% (Table 2.6). They also came from an exceptional rate in 2024 (69.6%). With this new growth, the level of these withholdings is approaching the maximum of 2021 (988 million in 2025, 1,052 in that year). However, his performance was very inconsistent throughout the year. In January, growth was very high, extending the trend of the last months of 2024, probably due to an anticipation effect from the entry into force in 2025 of the increase in the savings rate for high incomes. In the following months the increases were much more limited, rebounding strongly between June and October, to end the year with declines compared to 2024.

Meanwhile, withholdings for leases (mainly for premises) grew by 5.2% in 2025, slightly below the previous year (5.8%). Table 2.5). The trend throughout the year was one of stability around that average annual growth.

In 2025, installment payments linked to the profits of personal businesses experienced a growth of 11.4% (Table 2.8). This marks three consecutive years of strong growth (in 2024 they increased by 9.5% and in 2023, if corrected for regulatory changes, the increase would be of the same order). To illustrate, it suffices to say that the income of these personal businesses was almost 29% higher in 2025 than in 2022 (in the same period, salary and pension income increased by around 22%).

The gross result of the annual tax return, along with withholdings from employment, are the two elements that contribute most to the growth of PIT. In 2025 the positive tax rate increased by 26% (Table 2.9), slightly more than 24% if one takes into account that some 300 million were moved from 2024 to 2025 due to the postponement of the payment of the second installment of the 2023 declaration of the taxpayers of the province of Valencia. The cause of this strong growth was the positive performance in 2024 of income not fully subject to withholding or advance payments (capital gains, income from movable and immovable capital and income from economic activities). Its impact on income became apparent when the 2024 tax return was filed, at the end of June 2025. Refund requests also reflected the increase in these rents and only grew by 1.7%, compared to increases of around 15% in the two previous campaigns. This fact is not observed in the refunds made, which grow by 16%, because it must be remembered that these include extraordinary refunds to mutual members.