2027 State Budget: VAT and fuel taxes remain unchanged. IRS tax brackets updated

The government's proposed 2027 State Budget, submitted on Thursday, includes a 3.88% update to IRS tax brackets. VAT rates and fuel taxes remain unchanged from their current levels.

Why it mattersIf you are a taxpayer in Portugal, the 3.88% update to the IRS brackets is intended to adjust for inflation; whether this offsets the cost of living for your specific household will depend on how your salary changes compared to these updated thresholds.

Portuguese citizens' income to see changes if 2027 State Budget is approved

The 2027 State Budget proposal includes a 50-euro monthly increase for pensioners in 2027, with pension updates potentially extending through 2029. These measures are contingent upon the approval of the budget by parliament.

RTP· just nowRead original ↗

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Labor & Taxes

Government forecasts Social Security surplus above 8.3 billion euros in 2027

The government's 2027 State Budget proposal projects a Social Security surplus of 8.38 billion euros, an 8% increase from 2026. This outlook is driven by an expected 7.8% rise in contributions, based on a forecast of 2.1% GDP growth and a 4.5% increase in wages per worker.

RTP· 35m agoRead original ↗

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Labor & Taxes

Internal Administration budget rises by 364 million euros, with a focus on PSP and GNR salaries

The 2027 State Budget proposal allocates 3.1 billion euros to the Ministry of Internal Administration, a 13.1% increase from 2026. Of this, 2.4 billion euros (76.5% of the total) is earmarked for personnel costs, specifically for the GNR and PSP, including plans to improve housing access for police and military staff at the start of their careers. The budget also funds an expansion of the national speed camera network (SINCRO) and the development of a new Highway Code (Código da Estrada) to strengthen traffic enforcement.

Observador· 52m agoRead original ↗

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2027 State Budget: VAT and fuel taxes remain unchanged. IRS tax brackets updated

This update is from Bica

More on Labor & Taxes

Portuguese citizens' income to see changes if 2027 State Budget is approved

Government forecasts Social Security surplus above 8.3 billion euros in 2027

Internal Administration budget rises by 364 million euros, with a focus on PSP and GNR salaries