Labor & Taxes
"If we didn't update it, soon a substantial portion of the Portuguese would be paying." Miranda Sarmento explains the "adjustment" to the solidarity tax
The government's 2027 State Budget proposal adjusts the thresholds for the solidarity surcharge on high IRS incomes to align with the 9th tax bracket. The surcharge will now apply to income exceeding 89,995 euros, rather than the current 80,000 euros, in an effort to prevent the tax from increasingly affecting lower income brackets over time.
Why it mattersIf you are a high-income earner, this adjustment changes the threshold at which the additional solidarity surcharge (2.5% to 5%) applies, potentially reducing your tax burden compared to the current rules if the budget proposal is approved.
