Income Tax Calculator Spain
Use our Income Tax Calculator Spain to estimate your effective tax rate based on the latest Spanish income tax rates and brackets. Better plan your finances.
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Choose any of the following calculators. Calculate your effective income tax rate in any state of your preference.
Spanish Income Tax Rate
Residents in Spain paySpanish personal income tax (PIT) on income earned worldwide.
Spanish PIT is a progressive tax levied on total worldwide income after reductions. Rates increase based on income brackets. The following are the tax brackets for the year 2023:
Taxable base (from) | Taxable base (to) | Tax rate |
0 | 12,450 | 19 |
12,450 | 20,200 | 24 |
20,200 | 35,200 | 30 |
35,200 | 60,000 | 37 |
60,000 | 300,000 | 45 |
300,000 | Remainder | 47 |
Non-residents in Spain pay income tax at fixed rates on earnings not connected to a permanent establishment in Spain. The general tax rate is 24% (19% for EU/EEA residents with tax info exchange).
Use our dedicated income tax calculator for Tenerife to estimate your tax liability if you live and work in Tenerife. You can also use our dedicated Canary Islands Income Tax Calculator if you live and work in the Canary Islands.

Tax Law & Fines in Spain
The Spanish tax system is administered by the State Tax Administration Agency (AEAT) and includes taxes on income, consumption, and wealth.
AEAT oversees filing deadlines, tax collection, audits, and imposition of penalties for non-compliance as follows;
- Failure to file on time can trigger penalties of up to 20% of the tax owed.
- Inaccurate reporting can result in penalties from 50-150% of unpaid tax.
- Tax fraud is subject to fines ranging from 100-600% of tax owed, with no statute of limitations.
Also, worth mentioning that AEAT can investigate potential evasion through audits, document requests, and asset seizures. In cases of tax evasion over €120,000, it'll be considered a criminal offense with potential jail time.
Facts About The Tax System in Spain
- Spain has two parallel tax systems, one for national taxes and another for regional taxes. This duality allows some regions, like Catalonia, to have more control over their tax policies and rates.
- Spain is home to one of the world's largest lotteries, known as "El Gordo" (The Fat One).
- While the famous Spanish siesta might not be directly related to taxes, it's a cultural practice that can impact the economy. The unique working hours in Spain can affect tax revenue due to businesses' irregular schedules.
- In certain regions of Spain, like Madrid and Valencia, there is no inheritance tax for close family members.
- In some areas of Spain, there is a "sun tax" (Impuesto sobre Bienes Inmuebles de Naturaleza Urbana) imposed on solar panels. While it might not sound very sunny, this tax is an effort to regulate and tax self-generated solar energy.
Frequently Asked Questions
Got a question? We've got answers.
Progressive income tax uses graduated, increasing tax rates that apply to different income brackets. Here is a hypothetical example. Income tax in a random country is divided into brackets, like 0-$10k, $10k-40k, etc. Each bracket has a tax rate that increases as income rises. For example: 10% for 0-$10k and 15% for $10k-$40k and 25% for $40k-$85k. You calculate progressive income tax by applying the rate for each bracket only to the income in that bracket. So for $60k income, the progressive tax income will be 10% of first $10k and 15% of next $30k and 25% of remaining $20k. This will result in a total tax of $10,500.
Income tax is a tax levied on individuals and business entities based on their income or profits. It is imposed on taxable income, which is calculated as gross income minus any deductions and exemptions allowed under the tax code. For individuals, income tax typically applies to wages, salaries, tips, investment income like dividends and interest, business/self-employment income, capital gains, etc.
Social security contribution refers to the taxes paid into the social security system by employees, employers, and self-employed individuals. It’s used to fund several important social insurance programs such as retirement benefits, disability benefits, unemployment benefits, survivor benefits, medicare health insurance, etc.
Self-employed income refers to the earnings and revenues generated by individuals who are self-employed, operate their own business or have side projects. Some common examples of self-employed income include income from sales of products or services, consulting or freelance income, commissions, profit distributions, etc.
Self-employed expense refers to costs and expenditures incurred by individuals who are self-employed, owns their own business, or has a side project. Some common examples of self-employed expenses include equipment, supplies, insurance, professional fees, repairs and much more.
Need professional help? Talk to an tax accountant today