Labor & Taxes
State Budget 2027: New IRS tables to save taxpayers between 37 and 307 euros annually
The government's proposed 2027 State Budget includes a 3.88% update to the nine IRS tax brackets, an increase of the minimum existence threshold to 13,580 euros, and an adjustment to the solidarity tax threshold. Calculations by PwC indicate that a single worker earning 970 euros gross per month would pay zero IRS, saving 307 euros annually, while someone earning 1,500 euros would save 37 euros. These figures compare the proposed 2027 rates against the anticipated tax framework for the end of 2026.
Why it mattersIf you are a taxpayer in Portugal, this proposed budget indicates a potential reduction in your annual IRS liability for 2027 across various income levels, though these changes depend on the final approval of the budget proposal by Parliament.
