New IRS Tables 2025: What changes?

The new IRS tables 2025 are on the way and bring significant changes to income earned from January next year. These changes, in line with the State Budget for 2025, promise to make taxation fairer, benefiting workers, young people and tenants. Find out what's changing and how these measures could impact your personal and business finances. Read more here. 

Raising the minimum standard of living

The existence minimum will be adjusted, ensuring that workers earning the national minimum wage will continue to be exempt from IRS. This measure reinforces the commitment to tax justice and protects lower incomes from any tax burden.

Updating the IRS tax brackets

The taxable income brackets will be updated by 4.6%. This adjustment ensures that salary increases up to this amount do not result in a greater tax burden, promoting a better balance between income and taxes.

IRS Joven extended

The IRS Joven regime will undergo important changes. From 2025, all young people up to the age of 35 will be able to benefit from this incentive, regardless of their academic situation. In addition, the duration of the benefit will be extended to 10 years, making it an essential tool for attracting and retaining young talent in the labour market.

Improved deductions

Two main deductions will be revised. On the one hand, the specific deduction, which has been frozen for several years, will be updated to 4,462.15 euros. On the other hand, the limit for housing rent deductions will rise progressively to 800 euros, starting as early as 2025.

What to expect in January

The new IRS withholding tax tables will be published at the beginning of 2025, after the publication of the State Budget law. These changes represent an opportunity to adjust the tax burden to economic realities, promoting greater tax justice for citizens and companies.

At Serro & AndradeAs part of our team, we keep an eye on tax changes to ensure that our clients are always well-informed and prepared to manage their finances efficiently. If you need support in planning your tax obligations, we are at your service.