Taxes on electricity bills in Spain in 2026
Two taxes are added to electricity: the special electricity tax and VAT. In 2026 they have changed twice and may change again.
Today, 17 October, Spanish electricity bills pay the special electricity tax at 5.11269632% and VAT at 21%, the standard rates under Act 38/1992 and Act 37/1992. On 60 € of power and energy, that is €3.07 of electricity tax and €13.24 of VAT, because VAT is charged on the electricity tax too. It has not been like that all year. From 22 March to 31 May 2026, Royal Decree-law 7/2026 cut electricity tax to 0.5% and VAT to 10% for contracts under 10 kW, and the same bill carried €6.33 of tax instead of €16.31. Royal Decree-law 25/2026 sets up another cut for November and December if the electricity consumer price index rises by more than 15%. The Canary Islands have IGIC instead of VAT, at 0% for homes with up to 10 kW.
How much do taxes add to your bill?
Taxes on that bill
€16.31
| Electricity tax (5.11%) | €3.07 |
| IVA (21 %) | €13.24 |
| Total with taxes | €76.31 |
| Taxes raise the bill by | 27.2 % |
Excluding meter rental, which pays VAT (or IGIC or IPSI) but no electricity tax.
Checked by Radif Partners · Editorial policy · Method and sources
The two taxes, step by step
The special electricity tax is charged on power, energy and the other supply items, excluding meter rental. Its standard rate is 5.11269632%, with a minimum of 1 € per MWh for households. Then comes VAT at the standard 21%, applied to everything above: power, energy, electricity tax and meter.
| Item | Today | In April 2026 |
|---|---|---|
| Power and energy (example) | €60.00 | €60.00 |
| Electricity tax | €3.07 (5.11%) | €0.30 (0.50%) |
| VAT | €13.24 (21%) | €6.03 (10%) |
| Total with taxes | €76.31 | €66.33 |
What happened in 2026
Royal Decree-law 7/2026 of 20 March, passed after energy prices rose with the Middle East crisis, cut electricity tax to 0.5% from 22 March, and VAT to 10% for contracts under 10 kW and for severely vulnerable customers on the social discount. The cut was meant to last until 30 June but came with a condition: if April’s electricity price index was not more than 15% above April 2025, it would lapse in June. It was not, and standard rates returned on 1 June.
Royal Decree-law 18/2026 added a safeguard for August and September, tied to the June and July index. The INE published rises of 6.0% and 8.4%, below the threshold, so the cut did not kick in. Royal Decree-law 25/2026 repeats the mechanism for November, using September’s index, and for December, using October’s.
How this site applies it
Each period’s rates live in the site’s parameter file, with the rule that sets them. For November and December, the script that updates prices downloads the INE electricity price index every day and applies the Royal Decree-law 25/2026 rule: if the reference month’s yearly rise exceeds 15%, the following month is worked out with the cut. September’s figure is already out (11.4%), so November is calculated at standard rates. October’s will be known in mid-November; until then December is shown at standard rates with a notice.
Canary Islands, Ceuta and Melilla
There is no VAT in the Canaries: IGIC applies instead, and the 2025 consolidated IGIC text sets a zero rate for home electricity with up to 10 kW. The electricity tax is paid just as on the mainland. Ceuta and Melilla have neither VAT nor IGIC but IPSI: the consolidated Ceuta bylaw (article 33.4) and the 2021 Melilla bylaw (annex 1, second section) tax electricity consumption at 1% of the total billed. VAT cuts do not reach them; electricity-tax cuts do. A bill with 60 € of power and energy pays €3.07 of electricity tax and €0.63 of IPSI, instead of €13.24 of VAT.
To see what tax does to your whole bill, the bill calculator applies today’s rates, and the monthly history shows how April and May’s tax-inclusive average dropped.
One practical point for newcomers: tax lines on a Spanish bill appear as “Impuesto eléctrico” or “Impuesto sobre la electricidad” and “IVA”, always at the bottom, after the power and energy terms.