Spanish Income Tax Calculator 2026 (Declaración de la Renta)

The Personal Income Tax (Impuesto sobre la Renta de las Personas Físicas — IRPF) is a progressive, direct tax levied on the income of residents in Spain during the calendar year. The annual tax return (Declaración de la Renta) reconciles the taxes already paid monthly via employer payroll withholdings with the actual total tax due on your overall annual income.

🔍 How is IRPF calculated step-by-step?

The calculation divides your annual returns into two distinct tax bases:

1. General Taxable Base (Base Imponible General): Composed primarily of wages, self-employed income, and rental income. This base is reduced by deductible expenses (such as employee social security contributions) and a flat work-related deduction (usually €2,000.00).
2. Savings Taxable Base (Base Imponible del Ahorro): Formed by interest, dividends, capital gains on sales of stock, funds, or real estate.

Each base is subjected to a progressive scale of tax rates. To account for basic living costs, the Personal and Family Minimum (a baseline tax-free allowance starting at €5,550.00) is subtracted by applying the progressive rate onto this allowance and deducting that result from the gross tax due.

Finally, your tax return result is computed by subtracting the payroll withholdings already paid:

• Negative result (-): Means you overpaid throughout the year, and the Tax Agency will issue a refund (devolución).
• Positive result (+): Means you underpaid, and you must pay the remaining balance to the Tax Agency.

📝 Calculation examples

Below are two scenarios for Madrid residents filing their 2026 return.

Example 1: Middle-class wage earner with accurate withholdings

Example 2: Taxpayer with additional savings income (no withholding)

❓ Frequently Asked Questions (FAQ)

ℹ️ Understanding Spanish income tax