Catalonia stands out as the region with the largest share of middle incomes in the range of 30,000 to 45,000 euros per year, while in the Community of Madrid the smallest tax burden is borne by incomes of 160,000 euros and up, according to the study Panorama de la fiscalidad autonómica y foral 2024, conducted by the Consejo General de Economistas and the Registro de Economistas Asesores Fiscales (REAF) .
In the 30,000 euro bracket, for a single taxpayer with labor earnings, under 65, and without dependents, taxes in Catalonia amount to 5,039.55 euros; for 45,000 euros, 9,688.59 euros. In the Basque Country, with the same assumptions, the figures are 4,547.52 euros and 8,731.18 euros respectively. Euskadi is the region with the lowest tax burden for incomes between 30,000 and 110,000 euros per year .
To offset part of the burden on lower incomes, the Generalitat plans to lower the lowest tax rate in the regional tranche from 10.50% to 9.50% for earnings up to 33,000 euros. This measure awaits approval by the Parliament in the 2024 budget project; if approved, taxpayers would notice the change when filing the personal income tax return for the coming year. If enacted, Catalonia could lose its status as the region with the highest load on middle incomes according to REAF’s analysis .
According to the study, in Madrid and the Valencian Community the monthly charges are 29.47 euros in both cases, indicating the lowest tax burden up to 16,000 euros. In contrast, the Basque provinces Bizkaia, Gipuzkoa, and Araba register the highest burdens, at 960 euros. Madrid remains the territory with the lowest tax on incomes from 160,000 euros onward, at 56,681.65 euros, while the Valencian Community shows the highest burden starting at 110,000 euros, with 38,741.55 euros .
In total, eleven autonomous communities have reduced their IRPF rates to mitigate inflationary effects. In 2024, Balearic Islands, Cantabria, La Rioja, Navarra, and the Basque Country joined this trend. Many regions regulate deductions, generally with low fiscal impact because they apply to specific circumstances and often involve lower incomes. This pattern reflects ongoing attempts to shield households from price pressures without compromising overall revenue .
The president of the Consejo General de Economistas, Valentí Pich, criticized the proliferation of legislation and frequent changes that complicate life for people and lead to more litigation, calling for a reform of the regional financing system. The president of REAF, Agustín Fernández, warned that the financing model is in a state of exhaustion. He also explained that taxes on large fortunes have prompted several communities to adjust their asset tax strategies to protect their share of revenue. These observations underscore calls for clearer, simpler rules and a more stable fiscal framework .
Economists note that the administrative quality of the regions remains a concern. They highlight numerous tax benefits that are difficult to verify and offer little real value to taxpayers. Many incentives are nominative, costly to verify, and their effectiveness in reaching stated goals is questionable. The study emphasizes that regional taxes account for only about 2.2% of 2022 tax revenues, despite a 10.9% increase from 2021. These insights point to a need for more transparent, efficient, and targeted fiscal policies across the autonomous communities .