Labor & Taxes
State Budget 2027: Six measures affecting Portuguese pockets, from pensions to IRS
The government has proposed an IRS tax cut for the first six tax brackets, ranging from 0.3 to 0.5 percentage points, applying to taxable income up to 43,090 euros. This reduction will be retroactive to January 2026 and is expected to be reflected in November, providing additional net income likely arriving with Christmas bonuses. Additionally, retirees earning up to 1,611.39 euros per month will receive a one-time extraordinary pension bonus in December, ranging from 100 to 200 euros depending on their pension amount.
Why it mattersIf you are a taxpayer, you will see a slight reduction in your IRS withholdings starting in November with retroactive effect to January 2026; if you are a pensioner receiving under 1,611.39 euros monthly, you will receive an automatic, one-time cash supplement in December.
