According to the simulations, a single person without dependents, with a gross salary of 1,300 euros currently deducts, via the IRS, 179.27 euros.

In January, with the new tables, there will be a reduction in withholding tax of around 16%, to 151.34 euros, which corresponds to a gain in net income of around 28 euros per month and 392 euros per year.

A single person with a dependent and a gross salary of 900 euros currently deducts 24.66 euros from IRS. In 2024, this taxpayer will have a relief of almost 21 euros per month (84%), starting to pay 3.87 euros per month.

In the case of a worker married to a dependent and with a gross income of 2,000 euros per month, the current IRS withholding is 384.09 euros. From January onwards, this worker will see his withholding tax reduced by 15%, which translates into a net monthly gain of around 56 euros.

The new withholding tax tables accommodate the tax changes contemplated in the State Budget for 2024, namely the update of the brackets by 3%, the reduction in tax rates, as well as the increase in the tax-exempt amount (the so-called minimum existence) from 760 to 820 euros, in line with the national minimum wage of 2024.

These tables follow the model adopted from July 2023, in which withholding seeks to approximate the amount of tax that each person actually has to pay.

In the case of retirees, and taking into account the planned update, a pension of 1,150 euros in 2023 increases to 1,214 euros in 2024. However, the IRS withheld monthly will be lower: in 2023 it was deducted 117.64 euros, but from January it will be deducted 73.61 euros.