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What changes in the IRS in 2023?

What will your IRS look like in 2023? What changes for workers and pensioners? See what the new year brings you.

With the new year and the entry into force of the State Budget, news also arrives in the IRS in 2023?? Do you know what will change in the tax you pay on your income?

A new State Budget always implies changes at the tax level and, for workers and pensioners, it is time to understand how the IRS will work in 2023. pay less tax every month. But this could also mean that the refund will be less.

If you want to do math on what you’re going to earn and discount to the IRS in 2023, see the answers to some common questions.

7 Questions and Answers About the IRS in 2023


I earn minimum wage. As it increased, will I pay IRS in 2023?

No, because the minimum existence, that is, the amount up to which there is IRS exemption, will also increase in 2023. Thus, and despite the fact that the minimum wage has risen to 760 euros, those who receive this amount monthly will continue without pay.

In 2023, whoever wins up to 10,640 euros annual you won’t have to pay IRS.


In 2023 will I continue in the same IRS level?

The year 2023 again brings news to the IRS levels, so it is likely that you will feel the effect of these changes.

If in 2022 there was a breakdown of the scales (there were 7 and now there are 9), in 2023 there is a reduction in the marginal rate of the 2nd scale, which drops from 23% to 21%.

The change has an impact on the average rate of the remaining brackets and, therefore, also has effects on the IRS calculations of other taxpayers.

The IRS brackets for 2023 will be updated by 5.1%, so that salary updates do not imply an increase in the tax to be paid. in this document of the Government can perceive the differences between the IRS levels in 2022 and 2023.


I hear the retention tables are going to change. What is the impact of this change?

The withholding tax tables that come into effect on January 1, 2023 are only valid during the first half of the year. As of July 1, others will come into force.

Thus, in 2023 there are two phases with regard to withholdings: there are tables that are in effect between January, 1st and June 30th and others that apply from the day July 1st and until December 31st??

This new model aims to correct, as far as possible, situations in which a gross increase in salary did not translate into an increase in net salary. That is, cases in which an increase in income, even a small one, required paying more tax, which absorbed the increase.

Changes to the withholding tables may have yet another effect: as the discounted amount is closer to what you should actually pay, the taxpayer pays less per month and receives less reimbursement in the following year.


I have a home loan and the installment is going up. Will I pay less IRS in 2023?

If the rise in interest rates on home loans is having an effect on your monthly budget, you can pay less IRS during the year 2023. However, this is only possible if you work for someone else and have a monthly income below 2,700 euros.

In this case, you can ask your employer to start deducting it using the withholding rate below the current one. The application must be accompanied by a declaration and elements to verify that it meets the necessary conditions.

You should, however, bear in mind that this measure is not a tax deduction. If you pay less than you should, you may have to settle accounts with the Tax Authorities in 2024, paying the missing tax. If you usually receive reimbursement, it is likely that it will be reduced or that you will no longer receive it.


I have two small children. Will I continue to have IRS deductions?

You will continue to benefit from the deductions and even get a raise. Fixed deductions for the second and subsequent dependents have been rising and, in 2023, will rise from 750 to 900 euros per child. This measure applies when the family has more than one dependent and the youngest are up to six years old.


Are there more expenses I can deduct from the IRS in 2023?

Yes. In addition to the expenses that you can usually deduct, there are two more types of expenses that can lower the IRS to pay. From 2023 it is possible to deduct 15% of the VAT paid on digital and printed subscriptions to newspapers, magazines or other periodicals.

If you usually travel occasionally on public transport, you should ask for an invoice with a tax number, as all VAT on tickets will also become deductible. Don’t forget that the VAT on the passes already counts towards the deductions.


I will start working in 2023. Is it true that I can get a discount from the IRS?

Yes, as long as you meet the conditions to benefit from IRS Jovem. In 2023 there are new rules, which allow you to benefit from this discount for 5 years.

In addition, exemptions are now 50% in the first year, 40% in the second, 30% in the third and fourth years and 20% in the last.

IRS Jovem deductions now have the following limits, which are based on the Social Support Index (IAS), which in 2023 corresponds to 480.43 euros.

  • Year 1: 12.5 x IAS
  • year 2: 10 x IAS
  • year 3: 7.5 x IAS
  • Year 4: 7.5 x IAS
  • year 5: 5 x IAS

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