The Official State Gazette (BOE) published Law 5/2025, which incorporates a specific deduction in the IRPF for workers with annual income equal to or less than 18,276 euros, that is, those who charge the minimum interprofessional salary. Although the rule formally enters into force in July 2025, the provision indicates that its effects will be retroactive since January 1, 2025, so the impact will be reflected in the declaration of the income that occurs in 2026.
To access this fiscal reduction, the law sets two basic conditions. The first, that the full yields of the work are less than 18,276 euros per year. The second, that the rest of the income other than salary (such as rentals or financial yields) does not exceed 6,500 euros per year.
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It should be clarified that the deduction is not fixed, but depends on the level of income. Thus, those who win 16,576 euros or less will be entitled to the maximum deduction of 340 euros. On the other hand, if the salary is between 16,576 and 18,276 euros, the amount will be progressively reduced “subtracting 0.2 euros for each euro that exceeds 16,576”. Exceeded that limit, the deduction disappears.
As a summary, the table would be as follows:
| Annual work yields | Applicable deduction in IRPF | Additional condition |
|---|---|---|
| If you earn less than 16,576 euros | 340 euros | Not having other income exceeding 6,500 euros (excluding exempts) |
| Between 16,576 and 18,276 euros | 340 euros less € 0.2 for each euro that exceeds € 16,576 | Same income requirement |
| More than 18,276 euros | 0 euros | Does not apply deduction |
The rule itself warns that “the deduction may never exceed the proportional part of the full and autonomous full quota”, nor to be greater than the taxes that correspond to pay exclusively for the income of the work.
Practical example on the deduction of 340 euros
To visualize your application, let’s imagine a worker with an annual salary of 17,000 euros. At 340 euros of reference, 20 % of what exceeds 16,576 is discounted. In practice, the applicable deduction in its income statement would be 255.20 euros.
If the income goes up, the reduction is reduced. For example, with a salary of 18,000 euros, the benefit falls to 55.20 euros. This mechanism guarantees that the measure is concentrated in the lowest income sections, disappearing as long as the income exceeds 18,276 euros.
How and when to request the deduction of 340 euros
The most relevant thing is that it will not be necessary to request this deduction or present any additional procedure. The Tax Agency will automatically incorporate it into the draft of the 2025 Income Declaration, which will be presented in 2026. Of course, Hacienda recalls that “it is advisable to always review the draft before confirming it” to ensure that all the deductions to which you are entitled appear.
In this way, thousands of employees who until now taxed for receiving the minimum wage will be exempt. According to sources from the Ministry of Finance, the objective of the measure is “to ensure that no full -time worker who charges the SMI pays IRPF for the first time due to the salary increase.”