The reduction in personal income tax that, if you live in Madrid, will affect your income tax return

He next 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 leading to 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.