Based on this update, the limit for the first taxable income bracket will be increased from 7,479 euros to 7,703 euros, with the rate decreasing from the current 14.5% to 13.25%.
The limit for the second and third levels will go from the current 11,284 and 15,992 euros to 11,623 and 16,472 euros respectively. In parallel with the update, OE2024 determines a reduction in the rate applicable to these levels, decreasing (in the case of the second level) from 21% to 18% and from 26.5% to 23.00% (in the case of the second level) third level).
These two categories are also the categories that show the largest rate decrease (3 and 3.5 percentage points respectively).
At the next two levels of taxable income (which corresponds to the gross income deducted from a specific deduction of 4,104 euros or social security deductions, if higher) the limit will also be increased by 3%, from the current 20,700 euros to 21,321 euros per year (in the case of the fourth step) and from 26,355 euros to 27,146 euros (in the case of the fifth step).
There is also a decrease in the respective rates at these two income levels, which fall from 28.5% to 26% and from 35% to 32.75% respectively.
From the sixth to ninth tax brackets (which also include people with a gross monthly salary of about 2,200 euros per month paid 14 times a year), the limits are also updated by 3%, but the rates applied to each of them apply have not changed compared to the current model.
In practice, updating the taxable income limits ensures that salary increases of up to 3% will not result in a tax increase in 2024.
However, the value is lower than foreseen in the income agreement, indicating wage increases of around 5% and lower than what was observed in 2023 (where the reference in the agreement served as a guide).
Source: DN
