Retirement pensions are considered income from work in the eyes of the Tax Agency. This means that, despite retiring, a pensioner must pay IRPF (Personal Income Tax) just as he did in his career when he received a salary.
The mechanism is the same as the one executed with salaries and wages. On a monthly basis, the Treasury makes certain withholdings on pensioners’ pensions. These withholdings, however, are not the same for all people, since they take into account two aspects: the amount of the pension (which is calculated according to the Social Security method) and the personal situation of this pensioner taxpayer.
The amount of the taxpayer’s pension determines what the withholdings are, although they are carried out in installments. Thus, a system of scales is established by which, after certain income brackets, new withholdings are applied. The system is progressive: the more income, the more withholdings.
-A minimum withholding of less than 1% for income up to 12,000 euros.
-A minimum retention of 2.81% for the sections between 12,001 euros and 18,000 euros.
-A minimum retention of 8.69% for the sections between 18,001 and 24,000 euros.
-A minimum retention of 11.83% for the sections between 24,001 and 30,000 euros.
-A minimum withholding of 15.59% from 30,001 euros.
The remaining section that the Treasury assesses is the personal situation of the taxpayer. The body makes distinctions between different circumstances of the pensioner when designing the final personal income tax withholding:
-Age.
-If there is a physical or mental disability (and its percentage).
-Marital status: married, divorced, single…
-The income of the spouse (if any).
-If there are children under 18 years of age.
Due to the complexity of the calculation and the possibility of having an approximate idea unilaterally, it is advisable to go to the Tax Agency’s withholding calculator, . The operation is simple: the interested citizen only has to fill in the information that is requested and that has a lot to do with the aforementioned fields. Based on the data loaded, the program will create a projection of the withholdings that will be applied to the retirement pension.
This is how you can change the personal income tax of your retirement pension
Pensioners have the option of modifying the IRPF of their retirement pensions. Social Security has a service where you can request it, but only in the event that you want to extend that withholding or, failing that, return to the initial withholding once that increase in withholding was requested in the past. .
A retention change can be requested. Only Internet access is required, it is not necessary to have a digital certificate () or Cl@ve PIN or permanent ().
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