The Community of Madrid is starting today a virtual tool that calculates the tax savings of Madrid taxpayers in Personal Income Tax (IRPF). In an easy, simple and intuitive way for the citizen, information can also be obtained on the amount that would have to be paid in the rest of the regions under the same circumstances.
In the link of the regional Administration, which is presented this Tuesday by the Minister of Finance, Economy and Employment, Javier Fernández-Lasquetty, and after completing a questionnaire on the circumstances of the users (annual gross income, if they come from a public pension, age, number of children and type of declaration), the calculator offers an estimate of the amount to be paid for personal income tax, how much would be paid without the tax reductions carried out by the regional government and the tax savings obtained by said rebates.
In this way, the provisions of the Law for the Defense of Financial Autonomy are fulfilled in relation to the principle of transparency in income and which, among other issues, requires informing the citizens of Madrid, among other aspects, of the final destination of the contribution they make to public revenue, or of their tax situation in relation to other CCAAs.
Until now, the actions of the successive Madrid executives have resulted in a total of six decreases in the regional section of personal income tax since 2006, the last in 2022, the year in which the tax rates of all of them have been lowered by half a point. the sections of the regional tax scale.
Also, and apart from the specific deductions based on personal and family situations, it includes the impact of the deflation of 4.1% of the rates and that will benefit all taxpayers -3.5 million-. The objective, as specified by the autonomous government at the time, is to prevent them from losing purchasing power due to a rise in prices that implies a higher payment of taxes, and which will allow them to face the increase in taxes in their economies with more resources and better guarantees. domestic.
The Community of Madrid has carried out 20 tax reductions throughout this Legislature and, since 2021, it is the first CC AA of the common regime without its own taxes. In addition to the elimination of these last taxes and the reduction of half a point in all sections of the regional income tax scale and deflation, the bonus has been extended to 25% of the gift tax between siblings and between uncles and nephews, as in the case of successions.
New deductions have also been implemented and some of the existing ones have been extended to encourage birth rates and support families, as well as to favor economic activity, with tax relief for the acquisition of shares and social participations of new entities or of recent creation.
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