The Tax Agency allows families in the Community of Madrid with a new child to apply a deduction of up to 721.70 euros in the next Income Tax return campaign. This deduction is for those who had or adopted their child as of January 2023 and maintain cohabitation with the minor, meeting the income limits.
Unlike other single-payment state aid, that is, which is collected once and that’s it, this deduction specific to the Community of Madrid has a multi-year nature. Thus, the deduction can be applied not only during the year in which the birth or adoption occurs, but also in the two immediately following years. However, as it is a regional measure, it is essential to comply with a series of specific requirements set by the Treasury.
The 2025-2026 Income Tax Declaration campaign will begin on April 8 and will last until June 30. During this period, millions of taxpayers will have to report to the Treasury according to the remuneration obtained last year, so it is very important to apply all deductions.
Requirements to access the birth deduction
In order to benefit from this deduction of 721.70 euros in the declaration, you must know that it is exclusive for births or adoptions that have occurred after January 1, 2023. Even so, for those children born before that date, the regulations continue to maintain the deduction, although with a slightly lower amount that is set at 600 euros per child. In any case, it is a condition to live with the minor to qualify and have the right to apply this tax benefit.
On the other hand, the Tax Agency establishes income limits, since it is intended for families with the most economic needs. In this way, the taxpayer’s tax base must not exceed 30,930 euros if they file the declaration individually, nor 37,322.20 euros if they opt for the joint taxation modality.
In addition, there is a family limit, since the sum of the tax bases of all the members that make up the family must not exceed, in any case, the limit of 61,860 euros.
Be careful with multiple births and separate declarations
It must be taken into account that, in cases of multiple births or adoptions, the deduction will be an additional 721.70 euros for each child, but only during the first year in which the deduction is applied.
Furthermore, when preparing the draft and as is usually the case when parents live together but decide to file their tax returns separately, the law requires that the total amount of the deduction be divided equally (50% for each) in their respective returns. It is important and necessary that taxpayers do not automatically confirm the draft and review the regional section to ensure they correctly include this family situation and not lose money.
Similar aid in other autonomous communities
The Community of Madrid is not the only one that rewards family growth, since other communities have direct deductions in the personal income tax rate. For example, Andalusia allows you to deduct 200 euros per child, a figure that rises to 400 euros if you live in municipalities at risk of depopulation. In the Valencian Community the general aid is 300 euros for birth or adoption, while Catalonia offers 150 euros in individual declarations and 300 euros in joint taxation.
Aragón, for its part, focuses its deduction on larger families, granting between 500 and 600 euros from the third child. Other regions apply a progressive scale that increases aid the more children there are in the family unit. In Castilla-La Mancha, taxpayers can deduct 100 euros for the first child, 500 for the second and 900 euros for the third.
Castilla y León is one of those that offers the highest amounts, starting from 1,010 euros for the first baby and reaching 2,351 euros from the third, with additional increases if they live in rural areas. Similarly, La Rioja establishes a savings of 600 euros for the first child, 750 for the second and 900 euros from the third.