The changes introduced by the state budget to 2025 are already impacting those who receive salary or pass green receipts. Since the beginning of the year, new source retention tables, updated performance levels and expanded tax benefits such as IRS Young are in force. For many contributors, these changes can translate into real savings.
According to the Tax Authority, the nine IRS levels remain, but with superior limits, above the predicted inflation, which means that salary increases to some extent do not imply tax climb. Collectable income up to 8 059 euros pay 12.5%, but the maximum rate, applied above 83 696 euros, remains at 48%.
In 2025, taxpayers continue to deliver the IRS for income of 2024. Therefore, it is important to remember that two different tables prevailed this year: one between January and August, from September to December. According to the Finance Portal, these tables already reflect the rates adjusted with retroactive effects.
Source retention with less wage weight
One of the most visible changes concerns retention at source. The total exemption now applies to salaries up to 870 euros monthly, corresponding to the minimum wage. In the case of married and unique workers of aggregate income, the limit rises to 957 euros.
For people with disabilities, exempt values are even more generous, and may reach 2 325 euros, depending on the family framing, as detailed order No. 236-A/2025.
IRS Young man starts to last 10 years
Another of the big news is the extension of the IRS Young regime. According to the Tax Authority guide, it encompasses income up to 35, even if the taxpayer has no academic degree.
Exemption can last up to 10 years, even if there are interruptions, and covers dependent and independent work income. The initial deduction is total in the first year, progressively reducing up to 25% in the last three.
Changes that help in everyday
There are also news in the meal allowance. When paid by card, the amount exempt from IRS went from 9.60 € to 10.20 €. In cash, it remains at 6 €. The specific deduction for income from categories A (work due to others) and H (pensions) rose to 4,15 €, as established by OE2025.
The minimum existence was also updated. Anyone who has income up to 12 180 euros per year, ie 870 euros per month, is exempt from IRS.
Independently? There are also changes
For independent workers, the retention rate dropped from 25% to 23%. And payments on account, mandatory in certain situations, dropped from 76.5% to 65% of the calculated amount based on the official formula.
In addition, overtime is now being taxed with a retention rate at the source equivalent to only 50% of the monthly salary, a rule that previously only applied from the 101st additional work hour.
Prizes and income abroad also highlighted
Performance and productivity awards up to 6% of the base salary are exempt from IRS, provided that the company meets requirements such as minimum wage increases of 4.7% and belongs to the Updated Collective Labor Convention.
On the other hand, the obligation to declare certain assets detained in tax havens was reinforced. According to, it is now necessary to declare deposits, actions, real estate, crypto and other assets in more favorable tax regimes, being the IRS forms already adapted for this purpose.
The fiscal year is still halfway, but the rules are already on the field. For those who want to better plan what they will pay or receive, knowing these changes is the first step.
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