Income Tax: How the minimum wage update affects salaries in June and July

Starting in June , thousands of employees will begin to see the corresponding Income Tax withholdings on their paychecks, according to the new non-taxable minimums defined by the AFIP. The amount of their take-home pay will determine who must pay taxes, with scales that vary depending on marital status and the number of children they have.

Around July , ARCA anticipates an update to the values ​​based on accumulated inflation during the first half of the year. This adjustment will directly impact net pay: some employees could be exempt, while others will be subject to the tax if they exceed the new thresholds.

Workers who must pay Income Tax in June are those whose net salary exceeds $1,892,863 if they are single, or $2,510,231 if they are married with two children . This was indicated by tax advisor Ariel Bassanetti , who emphasized that "the amounts arise from an average estimate that includes the proportional amount of the Christmas bonus and a 17% withholding for social security."

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Depending on family composition, the minimum taxable amounts for June are as follows:

• Singles : gross income from $2,280,557 , take-home pay from $1,892,863 .

• Singles with 1 child : gross $2,467,309 , net $2,047,866 .

• Singles with 2 children : gross $2,654,060 , net $2,202,870 .

• Married without children : gross $2,650,873 , net $2,200,224 .

• Married with 1 child : gross $2,837,624 , net $2,355,228 .

• Married with 2 children : gross $3,005,029 , net $2,510,231 .

Among the deductions allowed for June are:

• Non-taxable income : $4,616,497

• Special deduction : $22,159,186

• Spouse : $4,347,914

• Children : $2,192,618

• Domestic service and rent : $4,616,497 each

Deductions are also recognized for life insurance , mortgage interest , medical plans , donations and school expenses , as applicable.

Starting in July, the non-taxable minimums will be updated based on accumulated inflation for the first half of the year. If the CPI for May and June mirrors that of April, the new income tax thresholds will be raised, which will change the population of taxpayers affected.

The change in the Income Tax will benefit 21,600 Mendoza residents. (Photo: AFIP)

According to Bassanetti, the estimated net salaries from which Income Tax would be paid from July 2025 would be:

• Singles : from $2,231,306

• Singles with 1 child : from $2,414,025

• Singles with 2 children : from $2,596,743

• Married without children : from $2,593,624

• Married with 1 child : from $2,776,343

• Married with 2 children : from $2,959,061

In gross terms, the new levels will range from $2,688,321 for singles to $3,565,134 for married couples with two children. This adjustment means that many workers who currently pay the tax could stop doing so.

In addition, personal deductions would also be modified:

• Non-taxable income : $3,916,268

• Special deduction : $18,798,088

• Spouse : $3,688,339

• Children : $1,860,042

• Education : $1,566,507

This update to the Income Tax has a direct effect on purchasing power: some workers will no longer pay taxes, while others could be included in the system depending on how their salaries evolve.