The government projects an increase of €5.1 billion in annual tax and social security revenue for 2027, driven by economic growth, wage increases, and inflation. While total revenue is expected to reach €80.9 billion, the tax-to-GDP ratio is forecast to decline to 23.8%.
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The government's 2027 State Budget proposal, delivered on October 8, 2026, projects an overall increase in tax revenue of 4.2%. While corporate income tax (IRC) is set to decrease from 19% to 18%—resulting in a 1% drop in revenue from that source—revenues from IRS, fuel taxes (ISP), tobacco tax, and specific levies on the energy and banking sectors are all expected to rise.
Between January and September 2026, the Portuguese state collected 51.16 billion euros in tax revenue, a 6.5% increase compared to the same period in 2025. This growth was driven primarily by a 13.5% rise in personal income tax (IRS) and a 9.4% rise in value-added tax (IVA), despite decreases in corporate tax (IRC) and tax on oil products (ISP) receipts.
The Socialist Party (PS) has submitted a proposal to reduce the share of online gambling tax revenue allocated to the gaming regulator and instead allocate 7.5% of these funds to support sports projects.