The Autonomous Community of Murcia has increased the income tax rate bands that apply to 'general' income, as a consequence of the recent rises in inflation.
The first four tax bands (for income up to €60,000) have been increased by 4.1%. By increasing the tax bands, more income falls into the lower rate bands and this has the effect of reducing the overall level of income tax payable.
Decree-Law 4/2022 of 22nd September, which sets out the changes to the legislation, entered into force on 29th September 2022, the date the Law was published in the Official Bulletin of the Region of Murcia.
The changes are effective from 1st January 2022.
Background
In Spain, income is categorised as either 'general income' or 'savings income' for income tax purposes. General income includes all earned income (i.e. salary, self-employment and pension income), rental income, income from royalties and other uncategorised income.
The tax rates and bands that apply to general income are different from those applying to savings income.
For general income, the income tax scale rates are made up of the 'State tax rates' and the 'Community tax rates'. The Community rates are set independently by each Autonomous Community.
New Income Tax Bands for 2022
The new tax bands for 2022 that apply to general income in the Region of Murcia are shown in the table below:
|
From (€) |
To (€) |
Band (€) |
Tax Rate |
|
0 |
12,960.45 |
12,960.45 |
9.6% |
|
12,960.45 |
21,028.20 |
8.067.75 |
11.46% |
|
21,028.20 |
35,394.00 |
14,365.80 |
13.74% |
|
35,394.00 |
60,000 |
24,60600 |
18.22% |
|
Over 60,000 |
22.7% |
When these rates are combined with the State rates, the combined income tax rates and bands in the Autonomous Community of Murcia are as follows:
|
From (€) |
To (€) |
State Tax Rate |
Community Tax Rate |
Combined Tax Rate |
Tax on Band (€) |
Cumulative Tax |
|
0 |
12,450 |
9.5% |
9.6% |
19.1% |
2,378 |
2,378 |
|
12,450 |
20,200 |
12% |
11.46% |
23.46% |
1,818 |
4,196 |
|
20,200 |
34,000 |
15% |
13.74% |
28.74% |
3,966 |
8,162 |
|
34,000 |
35,200 |
15% |
18.22% |
33.22% |
399 |
8,561 |
|
35,200 |
60,000 |
18.5% |
22.7% |
41.2% |
10,218 |
18,779 |
|
60,000 |
300,000 |
22.5% |
22.7% |
45.2% |
108,480 |
127,259 |
|
Over 300,000 |
24.5% |
22.7% |
47.2% |
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
