BMC Research · AEAT data
Income Tax by Region in Spain 2026: where you pay most and least
On €100,000 of employment income, a single taxpayer pays up to €3,152 more income tax a year depending on the region of residence. A study with effective rates computed from the 2025 Renta Manual regional scales.
Key findings
- On €100,000 of employment income, the income-tax gap between the lowest-taxing region (Madrid) and the highest (Valencia) reaches €3,152 a year.
- Madrid carries the lightest burden at the top of the scale: a 32.5% effective rate at €100,000, against 35.6% in Valencia.
- At middle incomes (€40,000) the gap narrows to €740: the regional layer weighs more heavily as the tax base rises.
- At €60,000, choosing residence in Madrid over Catalonia means €1,164 more take-home pay each year for a single taxpayer.
Effective income-tax rate by region and income level
Single taxpayer, no children, age 40, employment income. Effective rate = net liability / gross income.
| Region | €25,000 | €40,000 | €60,000 | €100,000 | €150,000 |
|---|---|---|---|---|---|
| Madrid | 15.1% €3,785 | 20.4% €8,171 | 25.6% €15,372 | 32.5% €32,492 | 36.0% €53,992 |
| Catalonia | 16.1% €4,013 | 22.3% €8,911 | 27.6% €16,536 | 34.2% €34,216 | 38.3% €57,496 |
| Valencia | 15.7% €3,936 | 21.7% €8,684 | 27.4% €16,434 | 35.6% €35,644 | 40.4% €60,624 |
| Andalusia | 15.9% €3,970 | 21.7% €8,666 | 26.8% €16,066 | 33.9% €33,906 | 37.6% €56,406 |
| Region of Murcia | 15.6% €3,901 | 21.1% €8,428 | 26.2% €15,708 | 33.5% €33,536 | 37.4% €56,036 |
Each cell: effective rate (top) and annual income-tax liability (bottom).
Methodology and sources
Effective rates apply the state IRPF bracket (common across Spain) and each region’s bracket to employment income, for a single taxpayer, no children, aged 40 and no disability. Region-specific deductions and savings income are not included.
- Regional scales: Spanish Tax Agency, Renta Manual 2025.
- Computation: BMC income-tax engine (state and regional brackets, personal and family minimums).
- Regions covered: Madrid, Catalonia, Valencia, Andalusia and the Region of Murcia.
This study is for information only and is not tax advice. Tax residence requires genuine presence; any decision must rest on an effective relocation.
Frequently asked questions
Why does income tax vary between autonomous communities if it is a national tax?
Spanish personal income tax (IRPF) has a state component, identical across the country, and a regional component that each autonomous community sets freely. That regional layer is what creates the differences in burden between territories.
How much does a resident in Madrid save versus Valencia?
For a single taxpayer on €100,000 of employment income, the difference in net tax liability between Madrid and Valencia is €3,152 a year under the regional scales in force (AEAT Renta Manual 2025).
Which taxpayer profile was used as the reference?
A single taxpayer, no children, aged 40, no disability, with employment income only. Changing marital status, children or a community’s own regional deductions can alter the results.
Where does the data come from?
From the regional IRPF scales published in the Spanish Tax Agency’s Renta Manual 2025. Effective rates are computed with the BMC tax engine, applying the state and the corresponding regional bracket.
Can tax residence be changed solely to pay less income tax?
Tax residence requires genuine presence (more than 183 days or the centre of economic interests). A purely formal change is rejected by the Tax Agency. Any planning must start from an effective relocation.
Does this study cover all 17 autonomous communities?
It covers the five communities of greatest economic weight and where BMC operates (Madrid, Catalonia, Valencia, Andalusia and the Region of Murcia). It will expand as the other territories’ 2026 regional scales are confirmed.
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