Tomorrow April 3 The Income and Assets campaign for the financial year 2023 begins. An occasion in which the Community of Madrid leads the way, for the rest of the autonomous communities of Spain, in everything we could call “tax relief”. Tax cuts. This new year 2024, and already in Holy Week, in the middle of March, with the Income Tax declaration in sight, many will feel it in their pockets. And all after deflating, again, personal income tax for the second consecutive year with the objective that This new tax reduction will help families in the face of price increases. The regional government's measure will be in force in the next income tax return, corresponding to 2023, and will save 153 million euros for the 3.5 million Madrid taxpayers.
This decision by the regional Executive makes the Community of Madrid the first of the common regime CCAA to approve deflation for two consecutive years and thus especially benefit the lowest incomes. The global savings for taxpayers in these two years will amount to more than 350 million euros.
The 2023 deflation on the regional scale of the Personal Income Tax 3.1% will be applied to all sections, the personal and family minimum, the current deductions and their income limit.. The regional government's measure once again provides Madrid families with greater economic resources, preventing salary increases from resulting in higher tax payments.
The Community of Madrid thus fulfills a commitment included in the electoral program and that will continue to benefit taxpayers as long as inflation is above 2%. The percentage on which deflation will be carried out will be 3.1%, which corresponds to the average rise in the CPI during the first eight months of 2023.
A good example of this tax relief that is seen in the Community of Madrid, compared to other regions, is the deduction for habitual residence. Those who are under 35 years old and receive income less than 25,620 euros in individual taxation or 36,200 euros in joint taxation They are entitled to a deduction of 30% of the amounts used to pay rent, with an annual limit of 1,000 euros. To access this deduction, the annual rental expense must be at least 20% of the taxable salary. Furthermore, the sum of the tax bases of all members of the family unit cannot exceed 60,000 euros.