Labor & Taxes
2027 State Budget: It's not a huge tax cut, but everyone gains something with the IRS reduction
The 2027 State Budget (OE2027) proposal includes a 3.88% update to IRS tax brackets and the specific deduction, alongside an increase in the tax-free minimum income threshold. Combined with separate tax rate reductions currently under parliamentary consideration, simulations for various household types indicate a progressive, albeit modest, annual reduction in total IRS tax liability compared to the initial 2026 regime.
Why it mattersIf you are a tax resident in Portugal, you can expect a modest increase in your annual net disposable income in 2027 due to these proposed updates to IRS tables and brackets.
CNN Portugal
