Overview
- The three provincial governments will lift income‑tax brackets and many deductions by 2% for 2026 to prevent bracket creep, keeping marginal rates unchanged.
- Gipuzkoa published the new tables to take effect in January and projects €32 million in relief, with updates such as joint filing relief rising to €4,896 and dependency amounts ranging from €906 to €2,040.
- Gipuzkoa also sets age deductions of €393 and €714 for taxpayers over 65 and 75 with taxable bases at or below €20,000.
- Approval hinges on the budget process: PNV and PSE hold a majority in Bizkaia, while Gipuzkoa and Álava will need opposition support to pass their accounts.
- The move follows repeated Basque deflactación since 2022 and responds to recent price growth, after 2025 reforms exempted incomes below €20,000 but left many others exposed to inflation’s tax effects.