Portugal

OE2027 relieves IRS on the richest. First step of the solidarity rate rises 12.5%

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 08/10/2026, 15:26:25 UTC.

Briefings

The Portuguese government proposed a 2027 budget plan to increase the first tier of the solidarity tax for high-income earners by 12.5%, raising the threshold from 80,000 to 89,995 euros. This change applies to the 2027 fiscal year, marking the first update in over 13 years. The second tier remains unchanged at 250,000 euros, with rates of 2.5% and 5% applied to income between and above these limits respectively. The proposal was delivered to the Parliament on October 8, 2026, following a long period of tax rate freezes.

Key points

• The first tier of the solidarity tax threshold increased from 80,000 to 89,995 euros, raising the rate from 2.5% to 12.5% for income between these limits in 2027.
• The second tier threshold remained fixed at 250,000 euros, with the corresponding rate of 5% applied to income exceeding this amount.

Context

This proposal represents the first update to the solidarity tax thresholds in approximately 13 years, occurring under the 2027 budget plan. The current thresholds were established in 2013 and have remained unchanged since then, despite subsequent amendments to the tax code in 2014 and 2016.

Limitations

The evidence covers only the 2027 budget proposal and historical context up to 2016. It does not include data on actual tax payments, economic impacts, or future projections beyond the stated budget figures.

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