Madrid smiles, others not so much: who pays the highest personal income tax this year

The differences in the fiscal policy of the autonomies is reflected in higher or lower income tax payments depending on where the tax is paid.

Oliver Thansan
Oliver Thansan
19 April 2023 Wednesday 22:25
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Madrid smiles, others not so much: who pays the highest personal income tax this year

The differences in the fiscal policy of the autonomies is reflected in higher or lower income tax payments depending on where the tax is paid. In general, the people of Madrid win out among the communities of the common regime, according to calculations by the General Council of Economists (CGE). The Catalans are the ones who pay the most in the first sections, in low and medium income, while later the honor falls on Extremadura and Valencians, depending on the section.

"In less than 30,000 euros where you pay the most is in Catalonia," summarizes Valentín Pich, president of the CGE. It is precisely where more taxpayers accumulate. It's mainly because they support higher minimum rates, he says. It is seen, for example, in the case of obtaining 16,000 euros solely in income from work, being single without children and under 65 years of age. In Catalonia, a total of 393.87 euros are paid for personal income tax, compared to 314.38 euros in the Valencian Community, where less. The Balearic Islands, Asturias and Extremadura are behind among those that collect the most.

In a higher section, of 20,000 euros, Catalonia has the highest tax payment, with 2,118.54 euros, but now Madrid is on the opposite side, with 1,909.97 euros. From this income and up to 600,000 euros, the limit of the study, Madrid becomes the one with the lowest taxation. "With fiscal autonomy in taxes, in addition to collecting, a message, an image, a position is sent. Every decision has its advantages and disadvantages," Pich analyzes the approaches of each one, such as the reduction in the sections.

In the 20,000 euros they also face a quota of less than 2,000 euros Canarias, Galicia and the Valencian Community.

Going up one step, at 30,000 euros the situation repeats itself. Adding this to the multiple figures of its own taxes, "Catalonia has a high-tax business card," summarizes Pich. The Catalans face the highest payment, with 5,041.35 euros, and the people from Madrid the lowest, with 4,638.25 euros. They support the lowest outlay by far, since the Murcians come right after, but with almost 4,800 euros.

The consolation for the Catalans is that compared to the income of 2021, the Government's tax measures will mean that in the tranche of 16,000 euros they will pay 3.49 euros less for personal income tax this year, 103.50 less for 20,000 euros and 52.55 euros less in the 30,000 euros. In any case, as a result of the deflations and measures aimed at reducing the impact of inflation on income, the greatest savings will be for Galicians, Madrid or Aragonese.

The situation varies somewhat in the following sections. In incomes of 45,000 euros, Extremadura are the most punished. They have to face a payment of 9,804.78 euros for their personal income tax. Again, the people of Madrid have the most attractive tax system, with 8,974.59 euros. They are the only ones that fall below the level of 9,000 euros. They pay almost 300 euros less than the next on the list, Murcia (9,208.34 euros).

In a scenario of income of 70,000 euros, Extremadurans remain as those who pay the most. His invoice rises to 19,646.17 euros, while the people of Madrid pay 18,199.89 euros. In this step, Catalonia falls to third position, also being surpassed by the Valencian Community.

In fact, from this point on, and in all the sections that follow, the Valencians become those who face a higher tax payment. "Each autonomy imposes taxes for various reasons, with decisions based on their way of understanding the world," says Pich. As these are higher amounts, the differences are increasing: between the lowest and highest income payments of 220,000 euros, Valencians pay about 12,000 euros more than Madrid residents in the same situation.

After Valencians, in high incomes in general Extremadura, Cantabria, Canary Islands or La Rioja are more exposed to paying taxes. Thus, Catalonia is where the most are paid for low incomes and up to 30,000 euros, but not thereafter or in the highest incomes. At 110,000 euros it is the ninth with the most load, the same happens at 300,000 euros and it is the eighth in income of 600,000 euros.