Portugal

Some people save 698 euros with the moves in the IRS. Here are the simulations

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 08/10/2026, 21:41:25 UTC.

Briefings

The Portuguese government is updating the Income Tax (IRS) rates for 2027, with a proposed 3.88% increase in tax brackets. Simulations by EY show that a single earner earning 10,000 euros could save approximately 698 euros annually due to lower effective tax rates, while a single earner earning 1,500 euros saves around 37 euros. The minimum income threshold is set to 13,580 euros, and the deduction for social support index is also being adjusted. The main uncertainty lies in the final value of the social support index deduction, which is not yet known. The article notes that the government has already proposed reducing tax rates for the sixth bracket, which will be voted on October 28.

Key points

• A single earner earning 10,000 euros could save approximately 698 euros annually due to lower effective tax rates under the proposed 2027 IRS changes.
• The minimum income threshold for tax exemption is set to 13,580 euros, and the deduction for the social support index is being adjusted.

Context

The Portuguese government is preparing changes to the Income Tax (IRS) for 2027, including a 3.88% increase in tax brackets. These updates affect the minimum income threshold and the deduction for the social support index, which is currently unknown. The government has already proposed reducing tax rates for the sixth bracket, which will be voted on October 28.

Limitations

The article relies on EY simulations for income tax savings, which may not account for all individual circumstances. The final value of the social support index deduction is not yet known, introducing uncertainty into the savings calculations. The article does not provide data on the impact of these changes on specific regions or industries.

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