Tax Advisor: Extremadura reduces the Personal Income Tax in the first two brackets and eliminates Wealth Tax
The Governing Council of the Regional Government of Extremadura approved a decree law with urgent measures that include the reduction of the first two income tax brackets, mainly affecting incomes below 22,200 euros, as well as the total elimination of the Wealth Tax.
The autonomic Administration highlighted that these measures will have retroactive effect as from January 1st, 2023.
As regards Personal Income Tax, whose impact on the regional coffers is estimated at some 39.8 million Euros, tax rates have been reduced in the first two brackets, which will be set at 8% and 10%, compared to the current 12.5%.
This tax reduction will benefit “all taxpayers,” noted the Administration, although it will have a greater effect on those with low and middle incomes, while restricting the impact of the decrease on higher income brackets.
As an example, he mentioned that taxpayers with a taxable income of less than €20,200 will experience an annual savings of approximately €300, while those earning more than €60,000 will see a saving of around €43 per year.
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