Budget 2027 proposal: IRS brackets up 3.88%

On 8 October the Government delivered its State Budget proposal for 2027 to Parliament. It is a proposal, not yet law: the general debate is on 27 and 28 October, the final vote on 24 November, and Parliament can still change it. For IRS, the proposal raises all nine bracket limits by about 3.88%: the first bracket would end at €8,666 instead of €8,342, and the top rate of 48% would start above €89,995 instead of €86,634. The proposed rates for the first six brackets are 12.2%, 15.2%, 20.7%, 23.6%, 30.6% and 34.6%, between 0.3 and 0.5 points below the 2026 table; the top three stay at 43.1%, 44.6% and 48%. The 2.5% solidarity surcharge would start above €89,995 instead of €80,000. The tax-free minimum income (mínimo de existência) would be €13,580 or 1.5 × 14 × IAS, whichever is higher. The Government says the specific deduction is updated too, without giving a figure.