2025 salary increases will be taxed in 2026 if received in that year

Managing the timing of taxation for income from employment is a critical aspect for the correct settlement of Personal Income Tax (IRPF). A recent binding ruling from the Dirección General de Tributos (DGT) has specified the tax treatment applicable to the salary increases provided for in Royal Decree-law 14/2025.

What the DGT has resolved

The body has addressed the issue of the temporal allocation of income from employment, specifically regarding the salary increases corresponding to the 2025 fiscal year. The criterion establishes that the allocation of this income must be made in the tax period in which it becomes enforceable.

In the context of the increases established by Royal Decree-law 14/2025, the DGT determines that enforceability occurs in the period in which the administration has fixed its payment. Consequently, if the payment of said increase is made during the year 2026, the income must be allocated entirely to the 2026 tax period, regardless of whether the right to the increase was generated in the previous fiscal year.

What this means for you

This criterion directly affects public sector workers who are entitled to receive the 2025 salary increases but whose collection is postponed to the following fiscal year. For these taxpayers, the tax impact will not be reflected in the 2025 tax return, but in the one corresponding to 2026.

It is fundamental to understand that IRPF regulations (Law 35/2006) link the tax obligation to the moment the income becomes enforceable. Therefore, the payment schedule established by the administration is the determining factor in knowing which fiscal year the income must be declared.

What you should do

Given this situation, it is necessary for affected taxpayers to take into account that their fiscal capacity and their tax base for the 2026 fiscal year will be altered by the inclusion of this income. It is recommended to assess the particular situation of each taxpayer and the planning of their tax obligations for the next fiscal year, considering that the salary increase will be added to their other income from employment in the year of its effective receipt.