Catalans pay 445 euros more income tax than Madrilenians

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The autonomous region that places the highest tax burden on Spain’s lowest incomes is Catalonia. According to a report by the Asociación Española de Asesores Fiscales (AEDAF), residents of Catalonia with an income below €30,000 pay an average of €5,111 in payroll tax (IRPF) per year.

This is €445 more than comparable taxpayers in the Comunidad de Madrid, where the tax burden is the lowest.

Highest payroll tax for low incomes

The AEDAF report shows that Catalonia has the highest regional tax rate for low incomes. For residents with an income of €30,000, the regional rate in Catalonia is 9.28%, while in Madrid it is 7.68%. This means that the total tax burden (including the national rate of 8.97%) in Catalonia is 18.25%, compared to 16.65% in Madrid.

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Tax burden on incomes of 60,000 euros

As income rises, the tax burden between regions changes. For an income of €60,000, Extremadura is the region with the highest tax, with a combined rate of 28.05%. Catalonia follows in second place with a rate of 27.55%, which equates to a tax amount of €15,983, €1,121 more than in Madrid.

Tax on incomes of 120,000 euros

For the highest incomes, such as those of €120,000, the Comunidad Valenciana has the highest tax burden with a combined rate of 38.2%. In this category, Catalonia ranks eighth with a rate of 18.33%, meaning taxpayers there pay €2,000 more than their counterparts in Madrid.

Also read: Spain in top three OECD countries with highest increase in tax in 10 years

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