How it works
In Spain an employee pays IRPF (Impuesto sobre la Renta de las Personas Físicas), which has two parts levied on the same taxable base: a state scale (9.5% to 24.5%) and an autonomous-community scale set by each region. Employee Social Security contributions are deducted from the gross pay first and are themselves deductible for IRPF. Foral territories (País Vasco and Navarra) run their own tax system and are out of scope.
How the calculation works (2026)
- Social Security (employee): 4.70% common contingencies + 1.55% unemployment (permanent contract) + 0.10% vocational training + 0.15% MEI (intergenerational equity mechanism, 2026) = 6.50% of gross, up to the maximum base of EUR 5,101.20 per month (EUR 61,214.40 per year). Above it, an extra solidarity contribution of 0.19%, 0.21% and 0.24% (employee share) applies to the slices above the cap.
- Deductible expenses: Social Security plus EUR 2,000 of general "other expenses" (art. 19 LIRPF).
- Work-income reduction (art. 20): EUR 7,302 if net work income is up to EUR 14,852, reduced gradually to zero at EUR 19,747.50.
- Low-wage deduction: in 2026 a deduction of EUR 590.89 on the tax due applies if gross work income is up to EUR 17,094 (the 2026 minimum wage, 14 x EUR 1,221), fading to zero at EUR 20,048.45. Together they leave minimum-wage earners with no IRPF.
- Personal and family allowance: EUR 5,550 for the taxpayer plus EUR 2,400 / 2,700 / 4,000 / 4,500 for the 1st / 2nd / 3rd / 4th and later child, and EUR 2,800 more per child under 3. It is not subtracted from income: the tax on the allowance is subtracted from the tax, separately in the state and the regional scale. Madrid, Andalucía and Valencia raise these allowances in their own regional part; the calculator uses their figures.
Regional scales used
- Madrid: 8.5% / 10.7% / 12.8% / 17.4% / 20.5% (thresholds EUR 13,362 / 19,005 / 35,426 / 57,320).
- Cataluña: 9.5% up to EUR 12,500, then 12.5%, 16%, 19%, 21.5%, 23.5%, 24.5% and 25.5% above EUR 175,000.
- Andalucía: 9.5% / 12% / 15% / 18.5% / 22.5% (thresholds EUR 13,000 / 21,100 / 35,200 / 60,000).
- Comunitat Valenciana: eleven brackets from 8.8% to 29.35%, as lowered by Ley 5/2026 with effect from 1 January 2026.
Worked example: EUR 32,000 gross in Madrid, single
net = gross - IRPF - Social Security
- Social Security: 6.5% x 32,000 = EUR 2,080
- Net work income: 32,000 - 2,080 = 29,920; minus EUR 2,000 expenses = taxable base EUR 27,920 (no work-income reduction at this level)
- State tax: scale on 27,920 = 3,270.75, minus scale on 5,550 (527.25) = EUR 2,743.50
- Madrid tax: scale on 27,920 = 2,880.69, minus scale on 5,956.65 (506.32) = EUR 2,374.38
- IRPF = 2,743.50 + 2,374.38 = EUR 5,117.88, so net = 32,000 - 5,117.88 - 2,080 = EUR 24,802.12 per year (EUR 2,066.84 per month over 12)
The same EUR 32,000 in Cataluña gives IRPF of EUR 5,538.45 and a net of EUR 24,381.55. A EUR 60,000 salary in Cataluña pays EUR 14,976.25 of IRPF and EUR 3,900 of Social Security, for a net of EUR 41,123.75.
What this calculator leaves out
Regional deductions (rent, births, education), the large-family and maternity deductions, pension-plan contributions, taxpayers aged 65 or over, disability, minimum contribution bases for very low or part-time pay, temporary contracts (unemployment rate 1.60%), in-kind pay, irregular income reductions, and several employers or other income. The Spanish payslip withholding (retención) is an advance payment, so your final return can differ. 12 versus 14 payments does not change annual net pay.