The Treasury confirms that the minimum wage will continue without paying personal income tax also in 2026
The interprofessional minimum wage (SMI) will also remain untaxed in 2026. Official sources from the Ministry of Finance confirm that the ministry is willing to update the deduction promoted by the Government in 2025 to prevent the SMI from paying personal income tax and adapt it to the minimum wage that is finally set for 2026. A remuneration that the Ministry of Labor has proposed raising to 1,221 gross euros per month in 14 full-time payments.
The Secretary of State for Labor, Joaquín Pérez Rey, had already announced this Wednesday after meeting with social agents that the SMI would continue to be untaxed in 2026, but the official confirmation of the Ministry of Finance, which is the one with jurisdiction over tax matters, had yet to be confirmed.
In this way, one of the great unknowns that remained pending to define the increase in the minimum wage for this year is cleared up. This same Wednesday, the Ministry of Labor has proposed to the unions and employers to increase this remuneration by 3.1%. This figure was the lowest of the two that the committee of experts appointed by Yolanda Díaz had proposed to calculate how much the minimum wage should rise. Precisely, because it was calculated for a scenario in which the minimum wage continued without paying personal income tax, as has happened to date.
The department headed by María Jesús Montero had already announced in December that the possibility of adapting the deduction created specifically to avoid taxation of the SMI last year was being studied. This tax benefit was approved by law in June of last year and took the form of a deduction of 340 euros for all taxpayers with work income of less than 16,576 euros per year (the amount of the SMI that has been in force in 2025).
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