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V0782-22 11 April 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Income tax withholding rates are determined through a calculation procedure based on current regulations

A taxpayer has enquired about the correct personal income tax (IRPF) withholding rate to be applied by their employer on their payslip. The Directorate General for Tax Regulations (DGT) explains that the calculation must follow the statutory steps to determine the tax base, personal and family allowances, the tax liability, and the withholding rate.

The question raised

What is the IRPF withholding rate that the company in which you work must apply to your payroll.

The DGT's ruling

The withholding tax on employment income is calculated by applying the rate resulting from the scale of the Regulation to the total amount of remuneration. The process requires determining the withholding base, the personal and family minimum, and the withholding amount. The final withholding rate is the quotient between the withholding amount and the total amount of remuneration.

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