Generalitat tax reform aims to ease the burden for Valencians earning under 60,000 euros
The Generalitat Valenciana is proposing changes to the autonomous section of the IRPF to shield middle- and working-class households from the impact of inflation. The plan includes three simultaneous measures designed to lift tax relief where it is most needed, benefiting about 1.3 million residents of the Valencian Community.
Three central measures are outlined in the reform:
1. A 10% increase in the Personal and Family Minimum for all IRPF taxpayers. This adjustment raises several minimum thresholds as the new baseline for taxpayers, including:
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General thresholds: from 5,550 euros to 6,105 euros
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People aged over 65: from 6,700 euros to 7,370 euros
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People aged over 75: from 8,100 euros to 8,910 euros
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Plus a 10% increase in the minimum for families with grandchildren, dependents, or disabilities
2. A revised rate applied to the General Taxable Base. This reform lowers the liquid income for taxpayers with taxable bases up to 60,000 euros by increasing the progression and redistribution of personal income tax. For bases exceeding 60,000 euros, the rate and the personal and family minimum remain unchanged. The aim is to shrink certain tax subdivisions while keeping overall progressivity intact.
3. Higher amounts and limits for regional deductions. All deductions that already have a fixed amount will rise by 10%, and other deductions will see increases up to 10% of their maximum limits. Income limits regulated by Valencian law remain key to accessing most of these deductions.
In addition, eligibility for many deductions is tied to income limits established by Valencian law, ensuring that these reliefs reach the intended population.
Concrete data. Information is provided to illustrate how these changes affect taxpayers in practical terms.
This reform mainly targets middle-income taxpayers who previously faced limited relief options. Calculations by the Generalitat show the following scenarios:
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For an annual income up to 10,000 euros, the full tax payable could drop to 445 euros or 350.55 euros, reflecting a reduction of 21.22%.
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For income up to 20,000 euros, the full tax payable would be 1,607 euros, reduced to 1,490 euros, a decrease of 7.26%.
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For income up to 30,000 euros, the full tax would be 2,997 euros, lowered to 2,930 euros, a 2.23% decrease.
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For income up to 60,000 euros, the full tax would be 8,947 euros, reduced to 8,914 euros, a 0.37% decrease.
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From 65,000 euros onward, there is no noticeable difference in the tax payable under the reform, and the baseline payment remains similar.
Generalitat’s tax reform: lower taxes for all income below 60,000 euros
Several concrete examples help illustrate the impact of the reform across different personal circumstances. When evaluating the reform, the increased Personal and Family Minimum, new rates, and revised deductions and limits are all taken into account to determine the final tax outcome.
Concrete examples. Information to help readers understand how the changes play out in real life.
The following cases are analyzed:
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Case 1. A young single person under 35 earning 28,000 euros with a mortgage and 8,000 euros in amortization
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Case 2. A couple with an elderly dependent at 80, earning 30,000 euros and filing jointly
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Case 3. A solo parent with a 4-year-old child and an income of 25,800 euros
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Case 4. A couple with two children, earning 30,000 and 38,000 euros, filing separately
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Case 5. A couple investing 6,000 euros to renovate their home for sustainability, with a joint income of 48,000 euros
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Case 6. A couple with two young children living in a municipality facing population decline, earning 28,000 euros and filing jointly
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Case 7. A person with a 33% disability earning 28,000 euros and who bought a house, with 8,000 euros amortized
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Case 8. Several young people under 35 paying 8,000 euros in annual rent, earning 18,000 and 21,000 euros, filing individually
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Case 9. A retiree over 76 with a pension of 15,000 euros
These scenarios are meant to show how the reform translates into real tax relief for diverse families and individuals across the Valencian Community.
Note: figures and thresholds are subject to official updates and must be confirmed with the regional tax authority as the plan progresses. All calculations reflect current policy interpretations and typical filing situations, and are intended to offer a practical guide rather than a legal or financial guarantee. (Citation: Generalitat Valenciana)