Portugal plans tax relief measures for 2027 to protect household incomes

Portugal’s 2027 state budget proposal outlines a series of fiscal adjustments intended to shield families from higher taxes as wages rise. The plan updates the limits of the nine IRS brackets and maintains lower marginal rates for the six lowest tiers, preventing rapid progression into higher tax brackets. The minimum taxable income will be tied to the national minimum wage, ensuring that the poorest households retain a tax-free slice of earnings.

For households with several children, the deduction per dependent will be increased, with a step-wise rise scheduled through 2028. These measures target low and middle-income earners, families with children, and those who have recently received salary increases, aiming to modestly raise net monthly pay and reduce annual tax bills.