2026 will bring changes for Madrid’ s municipal taxes. As announced by the City Council, the new garbage tax will be calculated according to the number of registered residents, there will be novelties in the vehicle tax and the IBI will be lowered.
Some of these measures were already announced during the last quarter of 2025 and the issue of waste management caused considerable controversy among the people of Madrid, who voiced their complaints and claims.
The waste rate according to the number of registered residents.
From now on, the calculation of the garbage rate will take into account the number of registered residents in each home. Ten rate brackets will be established, from homes with only one resident to those with ten or more.
A basic rate will be maintained according to the cadastral value of the dwelling and another by generation, based on the amount of waste produced in the neighborhood according to data from the Valdemingómez Technology Park.
The consistory estimates that the average bill in 2026 will be 142.6 euros, practically the same as in 2025. In total, the tax is expected to raise close to 300 million euros, not including daily cleaning costs.
For their part, garages and storage rooms associated with dwellings will not have to pay it, as they do not generate waste. As a novelty, garages for industrial use will also be exempt, provided that the interested party submits a responsible statement justifying this.
Benefits for less polluting cars
With the new year, the Tax on Vehicles of Mechanical Traction (IVTM), also known as “the little number“, will no longer be calculated according to the engine or fuel, but from the environmental labels of the vehicle.
This is a “pioneering measure in Spain”, according to the City Council, with which they intend to reward less polluting vehicles. In this way, both the IVTM and the Regulated Parking Service (SER) tax will follow the same criteria as the environmental labels.
In addition, the large fleets owning vehicles with ZERO, ECO and C badges will be able to receive a 50% bonus. The requirements are to circulate daily in the city, to be registered in Madrid and to renew annually a percentage of their vehicles for other less polluting ones.
Continuation of the IBI reduction
For the fifth consecutive year, the Madrid City Council will lower the general IBI tax from 0.428% to 0.414%. This is expected to save taxpayers more than 30 million euros by 2025.
In total, the accumulated reduction will mean that in 2026 the contribution of the Madrilenians will be 253 million euros less than what they were paying in 2019.
On the other hand, the bonuses for large families that have been applied since 2020 are maintained. They may amount to up to 90%, depending on the cadastral value of the property, and will benefit more than 36,000 households, with a combined saving of 17.19 million euros.
In the case of owners of century-old establishments, the rebate will increase from the current 50% to 95%. The aim is to protect traditional commerce with roots in the neighborhoods.