Portugal

IRS scales rise 3.88% in 2027 and fall short of the reference to raise wages

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Based on a feed excerpt; full article content has not been acquired. Source evidence retrieved 08/10/2026, 14:11:25 UTC.

Briefings

The Portuguese government proposed a 3.88% increase in Income Tax (IRS) thresholds for 2027, aligning with the state budget. However, this update remains below the 4.5% salary increase agreement between the government, unions, and UGT, leaving the CGTP outside the pact. The proposed tax reduction for the first six brackets further lowers the effective tax burden despite higher thresholds.

Key points

• The Portuguese government proposed a 3.88% increase in Income Tax (IRS) thresholds for 2027, aligning with the state budget.
• The proposed tax reduction for the first six brackets further lowers the effective tax burden despite higher thresholds.

Context

This fiscal adjustment affects Portuguese taxpayers, with the government aiming to increase revenue while reducing marginal tax rates for lower-income earners.

Limitations

The evidence is limited to the government's proposal for 2027, which remains below the union agreement. The specific impact on the CGTP is unclear, and the vote date is not confirmed.

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